The article discusses how options trading on stock market indices like S&P CNX Nifty can help investors manage risk and volatility. It explains how index options were introduced in India in 2001 and how they are used by fund managers to hedge their cash positions. The article also highlights the importance of liquidity in trading and how open interest in options contracts can indicate market sentiment. Additionally, it mentions the benefits of trading options over stocks, such as lower transaction costs and limited loss potential.