From discussions with clients over the years 1984-2013, I’ve concluded
that not many people know the first thing about puts and calls—i.e., stock
options.
I’m not sure that’s a bad thing.
Stock options aren’t as challenging as string theory, but they do seem
confusing and thus dangerous to many of us.
On the other hand, options can be used defensively, as a hedge
against losses in stock, funds, and other securities. Also:
A savvy (and lucky) investor in options can make a pile of
money in relatively little time.
I’m enough of a pessimist (or realist) to believe you’d lose
your shirt if I recommended you invest in stock options, so I don’t.
But if you’re curious and just want to learn what options are
all about, I can suggest an
excellent article featured at the website Top Stock Analysts.
It explains everything you’d want to know about the subject.
It’s terrific. Good job, Tina Orem!
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