https://www.youtube.com/watch?v=nvJ_43579z8
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I NEVER buy options because most of them expire worthless.
1. If the market price goes in the opposite direction=you lose all the money you paid for to buy the options
2. If the market price stays the same =you lose all your money
3. If the market price moves in your direction but not very much =you lose all your money
If the market has a very powerful move in your direction, you make money - the cost you paid for the option.
The main advantage is that your losses in #s 1-3 are limited to the cost of the options, even if the market price goes way against you. Also, you can stay in a gyrating market during a big swing against you, in hopes that it might swing back in your favor, without suffering a huge draw down in the account equity.
If you buy or sell futures, the losses are NOT limited and can become huge. You can have a protective buy/sell stop in for protection but this limits your ability to hold on to the position during a draw down period........in hopes that it will reverse in your favor.