Options Trading for the Conservative Investor: Increasing Profits Without Increasing Your Risk

Preface

The Elusive Goal: Low Risk and High Yield

Is it truly possible to match low risk with high yield? Most experts question the idea that there are ways for risk-averse investors to outperform the averages. However, conservative investors can exploit a narrow band of potential strategies to dramatically increase yields and, at the same time, manage risks within their self-defined risk limitations.

To some conservative investors, options are too exotic and too risky. If a range of strategies is too much trouble or contains too many pitfalls, it is not worth pursuing. But we proceed on the premise that a conservative investor is not necessarily someone who does not want to expand beyond a well-understood and short list of investment possibilities. ...