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What are the differences between trading stocks and options?

April 26, 2017differences Options stocks trading

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What are the differences between trading stocks and options?

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The profit made by option trading can be achieved many times more comparing to the profit made by stock trading on the same underlying stock move. For example, a stock can move up or down 20% and the option value can move 100% or more. Michael Wang bought a put option when SIGM was $50 and he profited 4,400% when the stock dropped to $20. Only trading option may achieve such huge profit when some stocks move downward.