More Sophisticated Stuff
There is much more to an options education, but there is no urgency. First, learn the basics. When that is accomplished, interested investors can learn to use options with more sophisticated strategies. Options are versatile and may be used to accomplish many investing objectives.
When you own stock (or sell it short), you earn money when the stock price rises (or falls). That’s about all you can do when using stock. With options, you can make good money by owning positions that prosper when the following happens:
• If you predict that a given stock will trade in a narrow range for a given period of time (perhaps six months or one year) and then rise sharply, you can use options to cash in on that situation—if it comes ...
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