Options
Whether managing risk or trading, options give you options.
The table below shows a range of transactions consistent with a given market opinion. Note that with options, transactions are not limited to outright buying or selling. Options provide hedging and trading flexibility and several risk level choices.
Market Opinion |
| Without Options | With Options |
Bullish very
somewhat | 
| Buy outright | · Buy outright · Buy call · Buy call spread · Sell put · Sell put spread |
Neutral |
| Do nothing | · Sell options · Sell option spreads · Do nothing |
Bearish somewhat
very | 
| Sell outright | · Sell call spread · Sell call · Buy put spread · Buy put · Sell outright |