Part 2 Intraday Master Class

Why Do People Trade Options?
1. Hedging

Investors use options to protect their portfolio.
For example, buying puts can protect your long-term stock holdings during a market crash.

2. Speculation

Traders use options to profit from short-term market move—up, down, or even sideways.

3. Income Generation

Selling options allows traders to collect premiums and generate regular income.
This includes strategies like:

Covered call writing

Cash-secured put selling

These strategies provide steady income but require higher capital and risk management.