Participants in Options Market
Hedgers: Farmers, companies, or investors protecting against risk. Example: An airline hedging fuel cost with options.
Speculators: Traders betting on market moves with limited capital.
Arbitrageurs: Exploit mispricing between options and underlying.
Why Trade Options?
✅ Advantages:
Leverage: Small premium can control large value.
Flexibility: Can profit in any market condition.
Defined Risk: Buyer’s maximum loss = premium paid.
Income Strategies: Writing options to earn premium.
❌ Risks:
Time Decay: Options lose value daily.
Complexity: Many moving factors (Greeks, volatility).
Unlimited Losses (for Sellers): If selling naked options.
Hedgers: Farmers, companies, or investors protecting against risk. Example: An airline hedging fuel cost with options.
Speculators: Traders betting on market moves with limited capital.
Arbitrageurs: Exploit mispricing between options and underlying.
Why Trade Options?
✅ Advantages:
Leverage: Small premium can control large value.
Flexibility: Can profit in any market condition.
Defined Risk: Buyer’s maximum loss = premium paid.
Income Strategies: Writing options to earn premium.
❌ Risks:
Time Decay: Options lose value daily.
Complexity: Many moving factors (Greeks, volatility).
Unlimited Losses (for Sellers): If selling naked options.
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
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
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
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.