I have traded only Equities till now. I dont understand options at all. I have not traded futures also.
Catching 2% to 3% swings is normal in equities. But in Options the premiums swings like >10% or even 100%. Given the extraordinary returns, why dont many people trade option contracts ? Am I missing something fundamental here (apart from heavy downside)?
Example : Today Adaniports Nov 300CE opened at 4.95 and went to a high of 7.85. That is something like 40% gain....unheard of in equities.
Thank you for your time :)
Catching 2% to 3% swings is normal in equities. But in Options the premiums swings like >10% or even 100%. Given the extraordinary returns, why dont many people trade option contracts ? Am I missing something fundamental here (apart from heavy downside)?
Example : Today Adaniports Nov 300CE opened at 4.95 and went to a high of 7.85. That is something like 40% gain....unheard of in equities.
Thank you for your time :)
Equities vs Options, extraordinary returns ?
