I am going to describe the potential risks and rewards associated with the four basic options strategies. Options are one of the most versatile trading instruments ever invented. They provide a high-leverage approach to trading that can significantly limit the overall risk of a trade, especially when combined with stock or futures. As a result, [...]

Understanding what options are, how options are used, and why options may be appealing in a successful trading strategy never used to be easy to understand for me (and I don’t think for many others for that matter). After doing a course in financial mathematics a couple of years ago, I could calculate the value [...]