Strategic planning is worthless—unless there is first a strategic vision.
̶̶ John Naisbitt, Megatrends, 1984
One of the more interesting aspects of options is that they can be extremely speculative and risky, or the most conservative of strategies. It all depends on whether you are a buyer or a seller, on whether you own the underlying stock, and on how you view risk in general.
Going short—selling first, and buying to close later—often is a tough idea to grasp. Most traders think about investing in a precise sequence. First, you buy a security and later, you sell. If the sale price is higher than the purchase price, you earn a profit; if it is lower, you suffer a loss. However, when you are ...