***Off Topic*** Dave, stocks are considered to be risky. The risk involved in options is much higher.
There are supposed to be conservative strategies involving options, but unless you really know a lot, the conservative strategies will probably end up costing you money. That's a simplification, but it's basically true.
Writing (selling) puts is high risk, even for options. Selling naked calls is high risk. The brokerage company will require a lot of equity in your account before they let you write naked puts or calls (to protect themselves against your potential losses).
Options are a form of leverage. You can make a lot of money, or lose a lot of money, faster than you probably thought possible.
Or you can play options in a smaller way, buying calls, or buying puts.
Unless you're a gambler, it's probably better to stay away from options. If you do want to gamble, you can do it more safely in the stock market than in the options market.
Regards,
Larry |
