Versatility is the unique qualities of an options. And a great benefit of this is we can combine multiple options into a position to create a strategy based on our purpose.
Nowadays, half of the population is aware of the word trading. Be it intentionally or unintentionally, most of us have done trade in our day to day life. To portray it in a simple way, everything you sell and buy is trading. In terms of stock market it is called stock trading that usually refers to buying
If I say “Change in implied volatility can have a greater impact on an option’s premium than the effects of delta, gamma, theta and rho combined” Sounds surprising? But it’s true.
Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds.