Option trading
There is 4 type of option Normally when we long a stock market, we get profit when it going up,we get profit see the graph green color is +profit, red color is -profit. Same rule apply when you short stock, we get profit when it going down, we get profit as graph show green color mean +profit, red color mean -profit. Option have 4 type, long call, short call, long put, short put. Long call, you get unlimited profit and limit loss. Short call, you get unlimited loss and limit profit. Long put, you get unlimited profit and limit loss. Short put, you get unlimited loss and limit profit. So, what difference long option is like buying a insurance, short option is likely to sale a insurance. and you notice Long call is like long stock but with limit loss, and long put is like short stock and with limit loss also. Is there better than normal stop loss? from my view option is more strategy and it safer, if you combine type of option in your portfolio, there are s...