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Why does an investor trade puts and calls? which strategy would you do?

Question: Why does an investor trade puts and calls? which strategy would you do?

(Posted by: excursion59 on 2010-03-10 07:19:25)

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Answers:

Posted by: Len on 2010-03-10, 07:51:04

You're talking about options which enable an investor to limit and carefully define exposure to risk. However, the system also curbs exposure to huge returns as a rule. I have advised people who do options regularly because I stay abreast of geopolitical pressures likely to affect global markets. However, I am a swing trader with occasional excursions into day trading. Risk is hardly limited in my investing world but I'm good with that for it holds the greatest opportunity for obscene gains. It's also immensely exciting. and I make a pretty good living every year. No complaints here---although sometimes I could wish I were smarter. Len

  

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