Why one should stop trading stocks and trade in options?
A stock investor can only buy or sell a stock, whereas an options trader can have a number of different strategies for different time frames. Stock investor buying stock can make money only when stock price goes up; similarly stock seller (short seller) makes money only when market goes down. Option traders can make money in any kind of market, up, down or sideways. Nothing in the stock market or any other market is a sure thing. The unexpected must always be expected, and this is one of the big reasons why one should trade options. • Why don’t you trade stock options on individual stocks? Because NIFTY index is less volatile than individual stocks, which gives us a tighter range to work with and hence a greater probability of success. Individual stocks are almost always more volatile than any index, in part because they’re subject to so much “event-driven” movement, like earnings reports, the actions and fortunes of competitors, management shakeups, etc. These sorts of events can acti
