Stocks vs Options: Why should I Trade Options!!

Hello Friends,

If you are someone who has exposure to the stocks and new to the options, I know the first question/doubt you’ll have in your mind – why should I trade Options at all??
And this is a fair question!

Let quickly look into the pros and cons of both.

Stocks:

The key benefit of trading or investing in stocks is simplicity! You simply buy a stock and hoping its price to go up, so that will be able to sell at a higher price and make a profit.

If you are bullish on a stock in long term
Have sufficient capital to lock/invest
You are not very active trader

then nothing is better than buying and holing for a longer time frame.

But if you are an active market participant and able to act on swings in the market than you can do really great with the power of options!

Options:

Unlike stocks, where you can make money only if stock goes UP, in the Options, you can make money if..

Stock goes UP
Stock goes DOWN
Stock shows NO MOVE!!

Really??
Yes, If you know how to apply a particular option strategy in particular market conditions!!

Beauty of the Options is that you can customize your strategy on the basis of your view on the market. For example if you are bullish long-term but neutral in near-term or you are mildly bearish etc.

But how to know which strategy to use when?

Well, it has bit of learning curve but once you learn it, it is an skill for life!

And that’s where BullishOption can help you!
Have a look at our various courses, Live 1-2-1 sessions, and trade-ideas service!