Lessons I Learned About Options
Just as I believe people should learn about, and participate in, the stock market, people should learn about, and participate in, the options market. There are times when you need options for all of the reasons I’ve mentioned in this book: income, speculation, hedging, and insurance. If used properly, options are an excellent tool for managing your portfolio and increasing your returns.
In my opinion, you should start by selling covered calls. If you ask me whether I’d rather be the options buyer or the options seller, I would choose the options seller. Selling covered calls is a defensive options strategy that won’t make me lose sleep (as long as I choose the right underlying stock). I personally believe that ...