Option Trading Part-1

What Is Institutional Option Trading?
Institutional Option Trading involves using derivatives (Options) for:

Hedging big equity portfolios

Speculating on volatility or price movement

Arbitrage opportunities

🔹 Key Techniques:
Volatility Arbitrage

Delta-Neutral Hedging

Covered Calls

Protective Puts

Iron Condors & Spreads

How Institutions Use Options Differently

✅ Retail Focus:
Naked calls/puts

Directional trades

Limited capital

✅ Institutional Focus:
Portfolio insurance

Complex multi-leg strategies

Implied Volatility arbitrage

Event-based hedging (like earnings or Fed news)