Option Trading Strategy- Best Stock Option Tips-ProfitAim

Day Traders Choose Option Tips for Option Trading

To achieve higher returns in the stock market, besides doing more homework there is one more option available with traders. They can take the services of investment advisory firm in the form of option tips.

With options offering leverage and loss-limiting capabilities, it would seems like day trading options would be a great idea for traders urge for higher returns. In reality, however, the day trading option strategy has a several advantages as well as disadvantages. Let us see –

Advantages of Option trading strategy

  1. Cost- Options are an inexpensive way to gain access to the underlying investment without having to buy stock.
  2. Leverage- Options enable investors to stump up less money and obtain additional gain.
  3. Marketability – Option contracts trade on an exchange and as such are standardized.
  4. Hedging – Option Trading may be used to limit losses.
  5. Return enhancement – Option contracts may be used to enhance return on investment.
  6. Diversification – One can replicate an actual stock portfolio with the options on those very stocks.

Disadvantages of Option trading Strategy

  1. Cost – As a form of insurance, an option contract may expire worthless. This risk increases the greater the extent to which the option is out of the money and the shorter the time until expiration.
  2. Leverage – Investors should realize that options leverage can impact performance on the down side as well.
  1. Marketability – Regulatory intervention can prevent exercise which may not be desirable.
  2. Hedging – The investor may end up being incorrect as to the direction and timing of a stock price and may implement a less than perfect hedge.
  3. Return enhancement -The investor may end up being incorrect as to the direction and timing of a stock price, rendering the attempt at enhanced portfolio return worthless.
  4. Diversification – Diversification cannot eliminate systematic risk.
  5. Regulation – Restrictions upon exercise may occur by regulatory fiat (OCC, SEC, court, other regulatory agency).

Besides upwards or downwards trends, ProfitAim have best option trading strategies for their option investors where they will definitely earn profit whether there is movement or no movement in the underlying stock price. We ensure that by investing in options, the trader can profit from our stock option tips, no matter which direction the market heads.

Stocks To Watch

Stocks to Watch

By keeping an eye on every movement of shares, your investment can be safely done. Here we are telling such stocks which will remain in the news today and on which the market will look.

Hero Motto / TVS Motors

Hero Moto’s total sales went up 10 percent to 6.78 million units in August. Total sales of TVS Motors increased by 16% to 3.17 lakh units in August, TVS Motors exports increased by 33.7 per cent to 45,604 units.

Aurobindo Pharma

US FDA completes its investigation of the company’s JV Eugenia Pharma Specialties. According to sources, eugenia pharma specialties got clean chit.

Reliance capital

Today is the last day of buying shares with home finance business. Company will separate home finance business. Today, the buyer will get shares of the home finance company.

Ashok Leyland / Tata Motors

The Delhi government has approved the purchase of 1000 CNG buses. DTC will spend 330 crores to buy new buses.

Gtp hathway

The company has received an order worth Rs 19.28 crore from the Gujarat Government to install internet broadband in the home department’s offices.

Get More Profit, More Returns if your are trading in Stock Cash segment with the support of Stock Cash tips provided by ProfitAim.