SBI is at 355. Trade entered with 3000 Stocks for 22 days. Sidharth and Akash are two investors. Sidharth sticks to what he knows, and does stocks. Akash takes calculated risks and does Option Strategies.
Let’s see the difference between doing a Stock and an Option Strategy
|Sid’s Stock||Akash’s Option Strategy|
|Max Loss||Very High||30,000|
|Probability Of Profit||50%||65%|
|Capital Required||10.6 Lakhs||1.9 Lakhs|
As you can see, the option has lower risks and better chances of success. And the capital need to invest is lower, which means higher % return.