Every investment options is like a coin which has both sides as loss and gain and options trading too cannot be ruled out in this regard. There surely are several advantages associated with trading in stock options but you should also be prepared to face the disadvantages at the same time and experts who have mastered the art in this domain of trading can easily outwit the limitations.

Trading in the field of options have been present for over 30 years but the attention and importance it is getting now had never happened in the past. Although traders are more or less effected by the ongoing concepts and rumors about it, they should not get influenced by the popular notions about this field unless they acquire personal and practical experiences and on-hand awareness about trading with options. Apart from gaining knowledge and information about the basic and fundamental terms and processes, you as an options trader should also be aware of the advantages and disadvantages. Let's start with analyzing the advantages to start with.

The leveraging power of options is highly appreciable and this adds to the cost efficiency factors of options stock trading. However, to enjoy maximum cost effectiveness and profit, you must be careful in picking the right kind of call to purchase and should make good use of the strategy called Replacement Options.

On the other hand, trading with options can also be considered as less risky than equities and other trading activities as an options trader can take part in the process with a little amount of money with less chances of loss.
Stock options has a provision called 'stop order' which allows you to have an amount set in your order, which means that you would incur no loss below that amount and apt purchase of put options may even strengthen your chances of hedging.

Ask any expert stock options trading consultant, and they would be able to testify the fact that this field of trading provides much higher chances of profitable returns comparing to other forms of trading, provided, you must carry on the purchase of right puts and selling off of the right calls.
Another very good point that options trading employs is the opportunity to harness multiple trading strategies which provide alternative trading options and possibilities to practice choice and to avoid risks.

Keeping these positive influences of stock options trading in mind, let's now get to revise the disadvantages of it which if avoided sensibly, can make huge profits out of it. The first drawback that a trader notices about this form of trading is its high-expenses.
As the bidding percentage is higher than stock trading along with the commissions, the cost of options trading can prove to be unaffordable to some traders.

Another avoidable problem that options trader face is the ambiguity and complexities of the options trading process which require prior and in-depth observation, information, insights and practice.
There are occur a possibility of low liquidity which make the process of trading difficult, and this happens due to the wide range of available option prices.
The time-limited process of options stock trading sometimes make the entire trading fruitless, when the same crosses the specific boundary of time.

Now, the above mentioned points can be taken as initial directives and guidance which can help traders take a right trading decision and of course each of these situations depend upon your personal options portfolio, individual trading type and adopted strategies according to one's capital and investment possibilities and goals.