Option trading offers the potential for higher returns compared to traditional stock trading. With options, traders can leverage their capital to control a larger position in the market, allowing for amplified gains if the market moves in their favor.
One of the key benefits of option trading is the ability to mitigate downside risk. By using various option strategies such as protective puts or covered calls, traders can protect their portfolios from adverse market movements.
Options offer a high degree of flexibility and versatility in trading strategies. Whether it's speculation, hedging, income generation, or portfolio diversification, options can be tailored to suit a wide range of investment objectives.