Options trading has seen significant growth in recent years due to the many benefits it offers,
Lower Investment:Options are more cost-effective than buying stocks directly. Options allow you to trade the stock and make a profit, but you must pay the full stock price to do so.
acts as insurance:Options function like Insurance if you own a stock over a long period. Let's say you own 100 shares of ABC Limited. To protect yourself from any price declines, you can sell a Call Option during the period.
Higher Profit percentage: Although you invest less in Options, your profit percentage due to movements in the price of the underpinning is the same as investing in stocks.
You may profit in any market scenario:With Options you can make a profit regardless of whether the market is bullish, bearish, or neutral. Option strategies can be executed according to market conditions and you may make a profit.