Advanced Institutions Option Trading - Part 3

Why Trade Options?
Hedging against portfolio loss

Leverage with limited capital

Income generation through strategies like covered calls

Directional trading using strategies like long calls or puts

Investment Strategy using Options
LEAPS (Long-Term Equity Anticipation Securities): Investing in long-term call options

Covered Calls: Generate income while holding stocks

Cash-Secured Puts: Earn premium while waiting to buy a stock at lower price

These are often used by investors to add flexibility and income to portfolios.