Analysis of 10 Popular Options Trading Strategies

Abstract

Derivatives are risk management instruments, one of the popular derivative products is options, but options are just now starting to get the attention of traders. Many investors avoid options, believing them to be too difficult to understand. But the fact is that, neither they nor their brokers were properly trained in how to use them. The improper use of options can lead to major problems. However, it is important for the individual investor to get both sides of the story before making a decision about the value of options. This paper is an attempt made to understand the options and some popular options trading strategies.