Investment Strategies Using Options – What Options Are Available?
Stock market offers endless possibilities for profitable investing. As everybody knows after the recent financial crisis, investing in stock market is associated with high risk. Stock market indices can go up or down, taking cues from changes in financial sector, political equations, and economic policies. Stock prices can also be affected by unpredictable events such as natural calamities and terrorist attacks. But there are mechanisms in stock market repertoire that allow a smart and knowledgeable trader to make profits even when the stock prices are falling. Exercising what is known as “options” is one such strategy. By availing an option, a stock trader gets the right to buy or sell a specific number of a particular share during a predetermined period. The tool of options, as the name indicates, provides a number of options of buying and selling for the trader without actually churning out money.
