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
Publicaciones relacionadas
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.
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
Publicaciones relacionadas
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.