Article: Why Stock Is More Risky Than Options!
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Why Stock Is More Risky Than Options!
You probably realize by now that our trading preference is stock options.
But you have probably been told or read that options are risky. Even worse, that you can lose your shirt trading them!
Well, what is the truth?
Let's take a look at stock ownership. What can happen if you buy stock?
The price can go up.
The price can go down.
The price can go sideways.
In the first case, you can make money. In the second you lose money.
And in the third case you don't directly win or lose but in fact it costs you money in two ways. The direct cost of brokerage and fees. And the indirect cost known as opportunity cost.
This is the cost due to lost opportunities. The fa...
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