In options:
if you buy calls and the price of the stock goes up 3%, you can make money, but you can also still lose money. All depends on the greeks (Delta,Gamma, kappa and theta). You never know accurately the to be expected result.
In futures:
if you go long and the index goes up 2%, you will always make money. You will never lose.
You know already, before entering a trade, what your exact result will be if you exit a trade at a certain price level.
If you sell 5 points above the entry in ES futures, you know for 100% sure what the profit will be. It will be $250 per E-mini.
If you want to sell a call after the stock went up $10, you never know what profit you will exactly make. You can even end up with a loss.
Sig is right:
[QUOTE="Sig, post: 4793570, member: 446656"]I would caution that there are extra degrees of freedom in an option that mean that your analysis might not be accurate. For example, you could sell an option for $1 and the underlying implied vol could go up such that the option is now selling for $2.10 even if the underlying price doesn't move. If the person who bought your option then exercised, you just lost all your money and then some.[/QUOTE]
if you buy calls and the price of the stock goes up 3%, you can make money, but you can also still lose money. All depends on the greeks (Delta,Gamma, kappa and theta). You never know accurately the to be expected result.
In futures:
if you go long and the index goes up 2%, you will always make money. You will never lose.
You know already, before entering a trade, what your exact result will be if you exit a trade at a certain price level.
If you sell 5 points above the entry in ES futures, you know for 100% sure what the profit will be. It will be $250 per E-mini.
If you want to sell a call after the stock went up $10, you never know what profit you will exactly make. You can even end up with a loss.
Sig is right:
[QUOTE="Sig, post: 4793570, member: 446656"]I would caution that there are extra degrees of freedom in an option that mean that your analysis might not be accurate. For example, you could sell an option for $1 and the underlying implied vol could go up such that the option is now selling for $2.10 even if the underlying price doesn't move. If the person who bought your option then exercised, you just lost all your money and then some.[/QUOTE]
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Looks good on paper and while markets are normal, but you can never predict black swan event and boom, there goes 10 years of savings 
