Description

OPTION TRADING is a way for savvy investors to leverage assets and control some of the risks associated with playing the market. Pretty much every investor is familiar with the saying, "Buy low and sell high." But withoptions, it's possible to profit whether stocks are going up, down, or sideways. You can use options to cut losses, protect gains, and control large chunks of stock with a relatively small cash outlay.On the other hand, options can be complicated and risky. Not only might you lose your entire investment, some strategies may expose you to theoretically unlimited losses.So before you trade options, it's important to think about the effects that variables like implied volatility and time decay will have on your strategy.This playbook will help you answer those tough questions. No need to ponder, just turn to the play.