Option Page To Be Updated
Learn when and how to effectively use options in your investment strategy
Example:
You own 100 shares of TSLA and want to protect against a drop.
Action:
Buy a protective put (limits downside risk).
Why Options?
Cheaper than selling stock; defines max loss.
Example:
You believe NVDA will rise but don't want to buy shares.
Action:
Buy a call option (small capital, high upside).
Why Options?
More leverage than stocks (higher % gains).
Example:
You think SPY will stay flat or rise slightly.
Action:
Sell a covered call (earn premium while holding shares).
Why Options?
Generates passive income in sideways markets.
Example:
Earnings season—you expect AMZN to move sharply but don't know the direction.
Action:
Buy a straddle (profits from big moves up or down).
Why Options?
Stocks can't profit from volatility alone.
Example:
You want to bet on AAPL rising but limit losses.
Action:
Use a bull call spread (lower cost than buying stock).
Why Options?
Defined risk, less capital than buying shares.
- Short-Term Gambling – Buying weekly OTM options is like buying lottery tickets (most expire worthless).
- Without Understanding Greeks – If you don't know Delta, Theta, or IV, you'll lose money.
- Illiquid Markets – Avoid options with low volume (wide bid-ask spreads = bad fills).