A verbal contract isn’t worth the paper it’s written on.
̶̶ Samuel Goldwyn, quoted in Laurence J. Peter, Peter’s Quotations, 1977
Risk is present in all forms of investing. One of the troubling aspects to any new investing idea is this basic risk, and with options the lack of knowledge or experience adds to the overall risk exposure traders face. Anything new invariably involves placing money on the line, even when you lack the experience to know for sure that the concepts will be profitable. So anyone new to options trading faces a dilemma: How do you gain experience without placing capital at risk? And how do you know if a risk is acceptable until you try a trade for the first time?
At the level ...