[vivegi]

Just expanding on the call options, one can even take a neutral hedge position by buying PUTs and CALLs at the same strike price. So, in essence you are betting that the price won't stay at the same level and would either rise or fall. Your net option premium is higher (approx. 2x of just buying a CALL opt or PUT opt only) but your long-term risk is much lesser (considering a sequence of bets) as scrips tend to be on an uptrend or downtrend in a given window and much less frequently get stuck in a range bound behavior.

Moreover when the assymetric event occurs (i.e., a meteoric rise or an abysymal crash), the loss is limited to the premium paid whereas the upside is huge.

Combine that with the Kelly Criterion (discussed widely here: https://hn.algolia.com/?q=Kelly+Criterion) you have a strategy.