Advantages of Options over Stocks

A friend of mine recently asked me the following question – What exactly are options – and why would anyone trade options as opposed to stocks.  I will try and explain what  exactly options are through the following points of why anyone would trade options. There are at least five reasons why options can prove […]

When does it make sense to buy Options?

There are only two reasons that I consider looking at options:

Income Generation
Purchasing stocks (that I already want) at a lower price than the current market price

Basically, either for additional income or for bargain shopping. And, as it turns out, neither of these reasons are good enough when the market is clearly bullish.
Income Generation
In […]