Compared with spot trading, option trading has greater income potential. Because the price of options is usually much lower than that of spot transactions, investors can control more assets with less effort and gain more benefits in market fluctuations. In addition, options trading is also affected by market fluctuations. The increase of market volatility will make the buyer more likely to exercise options, but the risk will also increase for the seller. What is the difference between selling a call option and buying a put option?

Common options trading methods include:

1. Buy call options: Investors expect the underlying asset price to rise, and buy call options to gain asset profits.

2. Buy put options: Investors expect the underlying asset price to fall, and buy put options to gain asset profits.

3. Selling call options: Investors predict that the underlying asset price will remain low or fall, and sell call options to collect royalties.

4. Selling put options: investors predict that the underlying asset price will remain high or rise, and the use fee will be charged for selling put options.

5. Portfolio strategy trading: By buying and selling different types of contracts at the same time, we can establish complex trading strategies, such as butterfly, retail and hedging.

It should be noted that option trading involves complex financial instruments and has high risks and leverage effect. Investors should fully understand the rules and risks of option trading and make careful decisions. Option trading usually requires investors to open an option trading account and choose a suitable option platform for trading.

Matters needing attention in option trading:

Investors should make appropriate trading strategies according to their own risk tolerance, investment objectives and market analysis before trading options. Investors can use technical analysis and fundamental analysis to assist decision-making and choose appropriate option contracts according to market expectations and personal judgment. The profit and loss of option trading is closely related to market fluctuation. Therefore, investors should pay close attention to market trends and information when trading options and adjust trading strategies in time.