* safety (especially large unforeseen sudden moves)...and hence peace of mind. you thereafter never trade with "scared money".
* more leverage of capital
* adverse movement is lesser than the pro-movement for the same movement of spot.
* more effective stop loss.
* lot of flexibility viz. a viz. which option to buy
* deeper in-the-money options have much less premium and move as much as futures.
* options have inbuilt stoploss.
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all i have to guard against is the time decay.
1 comment:
And, deep in-the-money options are better instruments for intraday trading too; b'cas, unlike futures intraday trading where one need to close it before 3.15pm, option positions (whether it is put or call) can be held till 3.29pm--if it is profitable.
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