Introduction Solving the Time and Proximity Issues

Options trading is a paradox.

It can be highly speculative or highly conservative, or both, depending on when and how it is used. This paradox can be employed to respond to the unceasing symptom of investing in the stock market: Those who buy shares of stock worry, no matter how price moves. If price moves up, should you take profits now? If price moves down, should you cut your losses or buy more shares? Owning stock is a troubling activity because of the uncertainties it involves. Options—with the paradox they bring to the picture—can solve some of the risk issues for you.

A lot of focus in the market is on short-term trading opportunities, and these exist without any doubt. However, the more ...

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