InvestorQ : Can option be a profitable method of making money in markets?
Bhavik Nehru made post

Can option be a profitable method of making money in markets?

Answer
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Niraj Mehta answered.
2 years ago


Options can always give you that rare bumper profit if you by at the right price of the right strike and at the right time. You must have surely heard of your friend or neighbour who bought a call option on SBI ahead of the bank recapitalization announcement and made a mini-fortune. These kinds of stories are just too salivating to miss out on. The risk of buying options is limited to the premium paid and to that extent your losses are limited. But globally more than 95% of the options expire worthless which means the sellers of options make money more often than buyers of options. Are there methods of trading call options consistently in a profitably manner? While there is no golden rule to trade call options, there are a few tips that can help you out. You can actually money in buying options if you consistently focus on identifying the right strike and the right price.