Demystifying the World of Options

Like politics and religion, options are not a safe topic for conversation in polite company. Entrenched beliefs, misconceptions and different agendas tend to cloud the discussion. The battle lines are usually drawn along the subject of risk, both real and perceived.

As someone who writes an options column, I obviously belong to the camp that believes options are a valuable investment tool that, when properly utilized, can both boost returns and reduce risk. That said, I acknowledge the validity of many of the arguments made against options. Perhaps pointing out the most common pitfalls, rather than proselytizing on the benefits, is the best approach to bring some evenhandedness to the subject.

Operation Manual

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