A Low-Risk, High-Potential Return Option Strategy by Jean-Olivier Fraisse, C.F.A.
ARTICLE SYNOPSIS ...A Low-Risk, High-Potential Return Option
by Jean-Olivier Fraisse, C.F.A.
Can call options be used as a substitute for purchasing stocks? Covered calls -- selling a call on stock
being held -- is one low-risk strategy, but profits can be limited on an up move. Another low-risk
strategy, the long call plus cash equivalent, attempts to preserve capital while combining safety and
potentially high profit. Jean-Olivier Fraisse explains how.
Options trading is not for the faint of heart. Beyond technical skills, it requires intuition and just plain
luck. Some option strategies, however, are ...