>As you are well aware, but, many people are not, trading the more complicated aspects of options requires a good risk management plan on the part of the trader. No many traders have enough knowledge to prevent great loses. - Cyber
I - and I comfortably say, many - options tarders take exception to these statements.
You have fallen into the same trap that most people that know little of options do - "you can lose 100% of you money with options."
The statement is true - BUT what you DON'T seem to understand is that losing 100% of an options trade is far, far less dollar loss that taking a good hit on a stock position.
If one shorts stock - which cyber allows - you do not know how much you can lose and CAN lose ones total capital very quickly.
However, if one uses an options put instead of the short, one know EXACTLY how much one can lose, can lost NO MORE THAT THAT AMOUNT, and for a small percentage of what the short cost. Also, one does not need "an uptick" to get into the position as one does with stocks.
IMHO, options are far SAFER than stock trading - especially daytrading. Please hire someone that understands options.
jb |
