The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

#48 - Why Trade Options vs. Trading Stocks? Here's 5 Great Reasons

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Synopsis

Hey everyone, Kirk here again at optionalpha.com and welcome back to the daily call. On today’s daily call, we’re going to give you five great reasons why you should trade options versus trading stocks. I think this is actually very easy for me to explain, but if you’re new to options trading or if you are trading stock right now and you’re considering trading options, this might be great for you. My top five reasons are the following. Number one is that options give us non-directional trading. Probably the biggest one for me is this ability to trade markets in any direction. I think people actually are surprised when they get started trading options, that they realize that they don’t always have to be long a security, meaning the only way they know how to trade or the only way most people know how to invest is to buy things. You buy this stock. You buy that stock. You buy the indexes. All you can do is buy. But the reality is that you can sell and go short things and you can go bearish on some things and you