For many people, options are seen as risky instruments best left to the experts. And it is true – if you don’t understand options (or any other financial instrument for that matter), you best stay away from them!
But if you’re familiar and understand how a particular instrument works, you can use them in specific situations with little risk to boost your investment returns in a short period of time.
Let me use this analogy: Driving a car is risky if you don’t know how to drive; you can end up in a serious accident. But if you do know how to drive a car, your risk goes down substantially and it can help you reach your destination much faster.
You may have heard of the term ‘option trader’ many times before. An option trader uses options to trade the markets for a quick profit. There are many successful options …