Options has its benefits and pitfalls too. However the three benefits of same are as listed below:
- It provides a limited risk and limited exposure as it costs much less to control 100 shares of stock than purchasing the shares outright...and, you can never lose more than your initial modest investment.
- Leverage: You can achieve percentage gains from your successful options investments that are 5, 10, and even 20 times the gains achieved by stock or mutual fund investors.
- You can make profit alike in bull and bear markets.
However the reasons why you should not trade in options as a retail trader can be accessed by clicking the given link as option trading is only good for High net worth individuals (HNI) traders.
