Why use options?

Options are tools that if used properly can greatly increase
your alternatives when investing in the stock markets.

These are the ways you can use option that are not available
when purchasing stocks:

• Hedging. Think of this as an insurance, just like your car or house. You can shield your portfolio from market downturns to limit your losses, and enjoy the full upside.
• You are able to purchase stock during a price drop.
• You can profit from any market movement - up, down, sideways
• You can benefit from the market without incurring the cost up-front while purchasing stock. You have leverage.

On the down side, options can be risky if the trader is using
it as a form of speculation or gambling. Why? Because this
is where the big money is made and LOST!

You must have a system to evaluate the underlying stock,
market direction and basic charting in order to get you
into the position to consider whether to execute the trade or not.

This will enable you to put your emotion aside.

I want to ask you a question. Why are you interested in
options trading?

If you are interested, I'll share with you what does
trading options means to me in the next post.