What attractions do trading options offer?
There are many reasons that we like to use options including;
- We want to be proactive about our portfolio – instead of just waiting for the market to increase over time, we want to create our own dividends as we go along.
- We, like every investor, don’t like the feeling of selling a stock. Options expire at the “strike” date. As a result, if you can look at the issues on the table when engaging at the beginning of the contract, the selling decision looks after itself naturally.
- Options are a fantastic “risk managing mechanism”. 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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