InvestorQ : Do I need to prepare myself before buying options and how should I go about?
F&O
sara Kunju made post

Do I need to prepare myself before buying options and how should I go about?

Answer
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2 years ago


Options are a slightly more tricky game compared to futures. Buying or selling futures is fairly more straightforward as it is exactly like buying and selling in the cash market. But when it comes to buying options there are a number of nuances like whether to buy OTM or ITM; whether to buy now or later; whether to buy this month or next month; whether to keep the position naked or hedged etc. The list can go on endlessly. You need a much more comprehensive of the understanding of options and also of the economics of options before venturing into them.