Characteristics of Stock Options
1. Flexible investment strategy
Stock options can assist investors to make profits in bullish, bearish or stagnant markets.
2. Hedging with options
Investors can restrict the downside while enjoying the full upside by hedging the underlying assets with options.
3. Leverage the return
Stock option is derivative, which leverages the investment return.
Low Transaction Fee
The transaction fee for stock option is cheaper than that for the same amount of stocks. Besides, stamp duty is exempted for stock option.