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Options Made Easy: Your Guide to Profitable Trading, Third Edition by Guy Cohen

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Chapter 1. Introduction to Options

Why is it that options are so misconceived as a minefield of danger and risk? How can we make sense of this and look at options as tools to limit our risks, maximize our returns, and SEE WHAT WE’RE DOING at the same time? This is the essence of OptionEasy and this book—how to make seemingly complex things simple.

Options have become remarkably popular, especially in the U.S. Far from being confined solely to the institutions and professional money managers, options trading is now mainstream for “retail” traders from all walks of life. The concept of options is still, however, treated with fear and trepidation in some quarters. When I first embarked upon serious trading, a friend warned me about what I was getting ...

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