Stock market offers endless possibilities for profitable investing. As everybody knows after the recent financial crisis, investing in stock market is associated with high risk. Stock market indices can go up or down, taking cues from changes in financial sector, political equations, and economic policies. Stock prices can also be affected by unpredictable events such as natural calamities and terrorist attacks. But there are mechanisms in stock market repertoire that allow a smart and knowledgeable trader to make profits even when the stock prices are falling. Exercising what is known as “options” is one such strategy.

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