InvestorQ : Can I use options in all kinds of markets be it bearish or bullish?
Katherine Gonsalves made post

Can I use options in all kinds of markets be it bearish or bullish?

Answer
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Rutuja Nigam answered.
2 years ago


The interesting thing about options is that it can be used to take a limited-risk view on all kinds of markets. It could be bullish markets, bearish markets, moderately bullish markets, moderately bearish markets, volatile markets or lacklustre markets. Let us look at the use of options in lacklustre markets in greater detail. It sounds ironic that options trading, which is normally equated with high risk trading, is actually a great product to play lacklustre markets. A word of caution! Not all lacklustre options strategies are risk-free. In fact, in some cases they are highly risky strategies unless the risk is smartly managed. Let us look at 4 such approaches to play markets that are lacklustre.