News for hackers. Stuff that matters.
Re:Basic Option Strategies by karamazov on Tuesday November 13, 2012 @02:19PM (#4779998)
Thanks! Using options conservatively - buying small amounts, or only writing covered options - can be a great way to mitigate the risk involved in trading just stocks.

You're right that writing naked options, or using more advanced strategies, is a great way to lose a lot of money, but commercial brokers usually stop people from doing that unless they have a good reason for it (or at least know what they're getting into).

Re:Basic Option Strategies by scrumper on Tuesday November 13, 2012 @02:44PM (#4780160)
Absolutely. Options are a tool, like any other. If you hold it wrong, though, the sharp edge can give you a really bad cut.