Options | MAY 2003
Which Strike Is Best? by Ihor Vysotskyy
Which Strike Is Best? by Ihor Vysotskyy Here’s a method for selecting advantageous options. Purchasing call options is often considered to be the simplest strategy when it comes to trading options. The method is based on the assumption that when the price of the underlying financial instrument goes up, the call option will also rise, generating a profit. However, this is not always the case. Most beginners in the options market start out by purchasing a call option, but are disappointed when they discover they have been misled into believing no risk is involved. Instead of profits, they experience enormous losses. This can cause them to think that trading options is such a risky activity that they turn away from options trading altogether.
by Ihor Vysotskyy
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