OPTIONS-THE WAY TO BOOK MORE PROFIT

They have been around for more than 30 years, but options are just now starting to get the real attention they deserve. Many investors have avoided options, believing them to be sophisticated and, therefore, too much difficult to understand. Many more have not had a good 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 disastor.

In options there are two types

1.CALL OPTION

2.PUT OPTION

Finally, words like "risky" or "dangerous" have been incorrectly attached to options by the financial media and certain popular figures in the market. It is important for the individual investor to get both sides of the story before making a decision about the value of options.

These are the main advantages (in no particular order) that options may give an investor
1.They may provide increased cost efficiency

2.They may be less risky than equity market.

3.They have the potential to deliver higher percentage returns

4.They offer a number of strategic alternatives.

With advantages like these, you can see how those who have been using options for a while would be at a loss to explain options' lack of popularity in the past.We have to maintain a strict stoploss in options.