Quote:
Originally Posted by 911_Dude
Im not saying the risk isnt there, but there are many many ways to use option trades. They may not all be as crazy dangerous as you think.
The most well known option trade is to just straight out buy an option contract and hope it makes wild money in a short time. But like I said before, I dont do that. There are numerous other strategies that have far less risk.
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As with all investing it depends on your goals and risk tolerance. One of my friends played the options game for about 5 years and made a container ship load of money. He was in the right place at the right time with a keen awareness of market movements. Most others didn't fare so well.
I am much more of a long term guy and I hate losing money in the market. After a 5 yr pause, one of my silly index funds manged to appreciate over $100k last year. This with effectively zero long term risk of losses. The only requirement here is patience and the only cost is opportunity. This is not the investment tool for everyone but it works for me.
Different strokes for different folks so choose your investment tools with eyes wide open to both the potential upside and the downside.