Do you really have to deal in traded options? Its a potentially lucrative game but it is complex but its for high staskes and the risk of high losses is ever-present. Maybe (I hope) you are already very experienced in the markets?
Tomorton,
Options are as complex or simple, and high-risk or low-risk as you want them to be. Risk mainly arises when users don't fully understand where and when the risk (and profit) lies within a strategy - possibly an inappropriate (complex) strategy.
One can use options conservatively - long calls/puts, vertical/horizontal spreads - with limited risk.
Grant.
Options are as complex or simple, and high-risk or low-risk as you want them to be. Risk mainly arises when users don't fully understand where and when the risk (and profit) lies within a strategy - possibly an inappropriate (complex) strategy.
One can use options conservatively - long calls/puts, vertical/horizontal spreads - with limited risk.
Grant.
hi grant -
all true of course. but general unfamiliarity with the valuation and time-relative concept (compared to e.g. shares) and the complexity of strategies that manage risk (compared with e.g. spreadbetting) and the difficulty of managing a position once opened (compared with e.g. use of stop-losses) make this a complex game with the possibility of high penalties for the loser. i'd love to hear details from anyone who makes this a consistently profitable vehicle.
all true of course. but general unfamiliarity with the valuation and time-relative concept (compared to e.g. shares) and the complexity of strategies that manage risk (compared with e.g. spreadbetting) and the difficulty of managing a position once opened (compared with e.g. use of stop-losses) make this a complex game with the possibility of high penalties for the loser. i'd love to hear details from anyone who makes this a consistently profitable vehicle.