Profit Opportunity

admin — Tue, 05 Jan 2010 17:19:20 +0000

With options, profit opportunities might exist no matter whether one believes the market is going to rise or fall. Moreover, there are a variety of ways in which those opportunities can be taken, by buying and/or writing options. In simple terms, a call holder and a put writer will expect to benefit from a rising market while a put holder and a call
writer will expect to benefit from a falling market. Some of the more sophisticated (but generally somewhat risky) strategies even benefit from a stagnant market. By writing options and exploiting the fact the option is a wasting asset whose value may simply evaporate over time, gains can be made as a result of the underlying market standing still. Such strategies are however only generally suitable for experienced options investors.

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Profit Opportunity