TL;DR: One of the charms of Options trading is that one can create set-ups where the risk-reward is asymmetrically in favour of the trader. Heads I Win, Tails; I Don't lose much. A trader has explained such a set-up where the max profit was Rs 1 Lakh and max risk was only Rs 6000. The margin required was Rs 2 Lakh
People are generally reluctant to deal with derivatives such as Futures and Options in the fear that they will be exposed to unlimited risk….
Options Trades can be structured such that it is "Heads I Win, Tails I Don't lose much"
Subscribe To Our Free Newsletter |