Meaning of Options – Options Contract is a type of Derivatives Contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period.
Buy Call option – View is bullish
Buy Put option – View is bearish
Options have been around for more than a decade, but options are just now starting to get the attention they deserve. Many investors have avoided options, believing them to be sophisticated and, therefore, too difficult to understand. Many more have had bad initial experiences with options because neither they nor their brokers were properly trained in how to use them. The improper use of options, like that of any powerful tool, can lead to major losses.
Finally, words like "risky" or "dangerous" have been incorrectly attached to options by the financial media and certain popular figures in the market. However, it is important for the individual investor to get both sides of the story before making a decision about the value of options.
Some important advantages of trading in options are
Options have great leveraging power. As such, an investor can obtain an option position that will mimic a stock position almost identically, but at a huge cost saving. Along with this it’s important that investors understand that making money in falling market with minimal risk is possible only in this segment.
Limited Risk – (Depending on How You Use Them)
There are situations in which buying options is riskier than owning equities, but there are also times when options can be used to reduce risk. It really depends on how you use them. Options can have limited risk for investors because they require less financial commitment than equities, and they can also be less risky due to their relative imperviousness to the potentially catastrophic effects in the underlying asset.
Higher Potential Returns
You don't need a calculator to figure out that if you spend much less money and make almost the same profit, you'll have a higher percentage return. When they pay off, that's what options typically offer to investors.
- Using Technical Analysis, this product will help you in identifying the right options at the right time at the right price to invest in. This will ensure that risk is minimum and return potential is humongous. These options will be selected by our team of experts after thorough research which will minimize your risk and maximize your returns. Again do not expect a quantity but expect quality calls
- Do not have to track the markets everyday. We will monitor this position very closely and advice when to exit.
- Risk is limited
- Good ROI (Return on Investment)
- We will not give complex strategies
- Knowledge of Technical Analysis / Fundamental Analysis/ Options is not required