4. options trading strategies

Options Risks and Benefits

You experience relatively little risk compared to other options with covered calls and puts, which makes them a good starting place for new options traders. Other options trading styles, however, can be extremely risky.
If you know what you’re doing and have a specific goal, adding options to your portfolio may be a good choice.

For the typical investor, though, options are not a good choice. There are stories of traders accidentally losing hundreds of thousands of dollars trading options, some even ending tragically. Enter the world of options trading with care.

When used correctly, however, options are a great way to gain market exposure while limiting your risk. You may use an option to buy a risky stock you think will rise instead of buying it directly, for example. You could also buy options to offset other portfolio risks or capture a gain from a specific set of market circumstances.
Before investing, decide whether the potential gains and benefits outweigh the risks for your specific investing goals.

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