1) Options are cost efficient with great leveraging power. An investor can obtain an option position similar to a stock position without actually trading the stocks themselves, but with much more volatility risk.
2) Options are a popular way to hedge your positions. However, when not properly understood by investors they may pose a high risk of loss.
3) Options have the potential to deliver higher percentage returns and losses.
4) Options provide a strategic alternative to investing in equity. There are many ways to use options to recreate synthetic positions; however, there are many risks associated with trading options and we suggest to do a lot of research before trading options.