Why Options?
You can trade options in order to accomplish a variety of investment objectives. Here are a few examples of how options can be useful coupled with examples of associated strategies:
|
Rationale
|
Example of a Strategy
|
|
Insurance against existing positions
|
|
|
Income enhancement
|
|
|
Profit from declining stocks
|
|
|
Profit from volatile stocks
|
|
|
Profit from range-bound stocks
|
|
|
Invest in stocks by paying less out of your trading account
|
|