Is options trading more or less risky than just buying something in the stock market?
July 31st, 2010 |
Author: Susan
If you buy a stock, you are exposed to the movements up and down on a daily basis, but you don’t crystallize a gain nor suffer a loss until you sell. With options, you also are exposed to the underlying stock and its movements on a daily basis, but you can manage your risk much more effectively. You can bring in as much or as little risk into the equation, but if you choose to operate in the options market, you can’t eliminate risk altogether. Personally, we choose relatively little risk that can still generate a generous return in a given period, but we can show you how to incorporate as much risk as you like.
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