Have you heard any of these common bits of “knowledge” about options?
• Buying options allows you to take part in big moves with limited risk.
• Eighty percent of options expire worthless.
• Volatility is the single most important factor for any option trader.
• If you sell an option and it moves against you, you are stuck until it expires.
In the debate between buyers and sellers of options, opinions can be represented as fact and fact can be distorted into misconception. This chapter is to give you some insights into some of the most common facts, myths, and misconceptions about buying and selling options. It will help to clarify, confirm, or completely discredit ...