Part 1 Support and Resistance

Participants in Option Markets

Different types of traders participate in option markets for various reasons:

Hedgers: Use options to protect their portfolio from adverse price movements.

Speculators: Aim to profit from price fluctuations in the underlying asset.

Arbitrageurs: Exploit price differences between related instruments to earn risk-free profits.

Institutional Investors: Use complex option strategies for portfolio management and risk control.