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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You can also use options as a hedge, i.e. as "insurance" - dunno if it is worth it for an individual.
Or you can buy some sort of insurance on the underlying option - again, dunno
I have a friend who makes lots of money in options, but while he lacks the resources of an institution, he far exceeds the puny millionaire in his resources.
YMMV, at least for the short run...