Why Traders Use Options
Options are not just for speculation—they serve many purposes:
🎯 Speculation
Traders can take directional bets with limited capital.
🛡️ Hedging
Protect your portfolio or a specific stock against adverse movements.
💰 Income Generation
By selling options (covered calls or puts), you can earn premium income.
🎯 Leverage
Control larger exposure with less capital, but with higher risk.
Real-World Example: Call Option
Imagine Reliance stock is at ₹2500.
You buy a Call Option with strike ₹2600, premium ₹50, expiry in 2 weeks.
Scenario A – Price goes to ₹2700:
Profit = (2700 – 2600 – 50) = ₹50 profit per share
ROI = ₹50 / ₹50 = 100%
Scenario B – Price remains ₹2500:
Loss = Full premium = ₹50 (option expires worthless)
Options are not just for speculation—they serve many purposes:
🎯 Speculation
Traders can take directional bets with limited capital.
🛡️ Hedging
Protect your portfolio or a specific stock against adverse movements.
💰 Income Generation
By selling options (covered calls or puts), you can earn premium income.
🎯 Leverage
Control larger exposure with less capital, but with higher risk.
Real-World Example: Call Option
Imagine Reliance stock is at ₹2500.
You buy a Call Option with strike ₹2600, premium ₹50, expiry in 2 weeks.
Scenario A – Price goes to ₹2700:
Profit = (2700 – 2600 – 50) = ₹50 profit per share
ROI = ₹50 / ₹50 = 100%
Scenario B – Price remains ₹2500:
Loss = Full premium = ₹50 (option expires worthless)
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Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
相關出版品
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。