1.Options bring a wealth of trading strategies
2.No more weather-dependent
As we all know, only bull market can make money if you play cryptocurrencies. If you do options, then the bear market can also make money. Why don't options depend on the weather? It is because it has corresponding bull market strategy, bear market also has corresponding strategy, it does not need to see the day to eat, do not need the market to be able to walk out of the bull market or bear market, no matter what kind of market, there are strategies corresponding to it, in any market can make money.
3.Risk return asymmetry(Limited losses, unlimited gains)
As the buyer of options, the benefits are unlimited and the risks are limited. Whether you buy a call option or a put option, the payoff is unlimited and the risk is limited
4.Unique profit and loss structure, can construct a variety of flexible portfolio
Options have obvious advantages in risk management and portfolio investment. Through the combination of different options, options and other investment tools, investors can construct portfolios with different risk and return conditions. Such as straddle strategy, Strangle strategy, etc.
5.Using the diversity of options trading strategy, we can realize three-dimensional combat.
In addition to the profit strategy with two dimensions of up and down, options also have a number of influencing factors through which strategies can be constructed. For example: directional trading strategy, volatility trading strategy, time trading strategy, and risk-free arbitrage and so on. These strategies can capture the opportunity to profit when the market is flat or volatile.
6.Using multi-dimensional profit approach of option can realize precision strike
In the options market, the more accurate and thorough your view of the market, the more money you can make through options. Unlike stocks, cryptocurrencies and futures, options have the impact of volatility and time value in addition to the direction and price of the underlying asset. So there are multiple ways to make money. If I am an expert in making targets, then I will use directional strategies. If I am poor in direction and always make a wrong judgment, then I will profit from the dimension of volatility. Multi-dimensional approach, can be used to achieve precision strike.