What is option trading and how it can be done profitably ?

Options traders can profit by being option buyers or option writers. Options allow for potential profit during volatile times, regardless of which direction the market is moving. This is possible because you can use an options trading platform to trade in anticipation of market appreciation or depreciation

Also called the 1-3-2 butterfly spread, it is a common variation if the butterfly spread involving buying one option at a lower strike, selling three at a middle strike, and buying two at a higher strike. This advanced options trading strategy offers more flexibility.

If you think the stock price will stay stable: sell a call option or sell a put option. If you think the stock price will go down: buy a put option, sell a call option. Frederick says to think of options like an insurance policy: You don't get car insurance hoping that you crash your car.