When traders hear “options”, their minds usually go to one of two places…
- Big gains can be made by only using small amounts of money.
- They can be highly risky if you don’t have a strategy.
Both of those are very true. In regards to the 2nd point though, ANYTHING is highly risky when you don’t have a plan. Walking across a busy street with no strategy of looking both ways before you cross severely increases the riskiness of the situation.
In my opinion, there are other attributes about options that really never get talked about. And in my mind, the things I talk about in this video are the TRUE GEMS when it comes to options. Don’t get me wrong, having the chance at big gains with small amounts of money at risk is great, but I believe there are some even better components that options provide.