Chinese stocks under pressure • Options need to be understood completely in order to deal with the risk which exists in the market. • As you may know options can be used for speculative reasons, hedging one’s portfolio, and reducing exposure to another market.
More sophicated option traders are employing butterflies, condors on weekly options to reduce their exposure in the market. • Theta is the greek which needs to be understood in order to perform well with these strategies.
Been able to sell time instead of being right on direction is an easier way to trade with lower risk. Very few traders employ these advanced concepts through lack of education.