About Option Trading | The advantage and Disadvantage of option trading
This video is made on the topic of option trading. So many of us would have tried our hands in options trading but might not have been able to get the exact result. So most of us would have wondered why our options made? So the answer to it is simply of transferring risk from one person to another. So I know it might sound complicated, okay let’s simplify it. So some of the famous options strategies we use are Covered Call, Married Put, Bull Call Spread, Bear Put Spread, Protective Collar, and Long Straddle. So the most important question that we will be discussing in this video is why most people lose money in the option. So the key to it is the concept of option pricing theory which uses variables to value an option.