What are options trading advantages?

Options trading has gained significant traction in recent years because of the many advantages it offers like- Low Investment: Options require low capital to invest than directly purchasing stocks. You need to pay the full price of the stock to trade and profit from it whereas in Options you pay a premium which is a fraction of the price of the stock. Acts as an Insurance: Options work like an Insurance if you are holding a particular stock for the long term. Suppose you are holding 100 shares of ABC limited. You can sell a Call Option for the period and protect yourself against any downward movement in the price of the underlying. Higher Profit Percentage: While you are investing less in Options, the profit percentage due to movement in the price of the underlying is same as investing in equities. May profit in all market scenarios: With Options, you can make a profit in all scenarios- bullish, bearish or neutral. You can execute option strategies as per the market outlook and may earn profit from it.