Learn With ETMarkets: Options Demystified 101 – Power of options

Options trading is a fascinating and versatile tool for hedging against risk, generating income, and speculating on future stock price movements. Options act as contracts that grant the right, but not the obligation, to buy or sell an asset at a specific price within a certain time frame. Options provide leverage and flexibility and are actively traded on exchanges. However, it is crucial to have a thorough understanding of the dynamics of options trading to avoid falling into an option trap. Inexperienced traders need to approach options trading with caution and care.