Options trading has one big advantage over almost every other form of trading.It is the ability to make money when you believe that a financial instrument is likely to experience a dramatic price movement,without having to predict in which direction that price movement will be.
It is because of the limited loss vs unlimited gain potential inherent to options agreement. Buying call options has limited losses, the amount you spend on them, but unlimited potential gains.Buying put options also has limited losses and almost unlimited gains.
The simplest Volatile Options Trading Strategy is to buy an equal amount of call options and put optionson the same underlying security with the same strike price.The idea is that if the underlying security goes up,you make more profit from the long call than you lose from the long put. If the underlying security goes down, then you make more profit from the long put than you lose from the long call.
Of course, this isn't without its risks.
Small price moves aren't enough to make profits from this, or any other, volatile strategy.
Know more to grow more.
Investment in securities market are subject to market risks, read all the related documents carefully before investing
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
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