I first got involved with stock options back in the 1990s the way a lot of people do.
I was given some by my company as a perk called an ISO, an “Incentive Stock Option.” What I didn’t know then was that anyone could buy and sell these types of options on the exchange without being a key employee of a company.
And this is the first piece of education you should be getting when it comes to options:
Options are one of the most versatile, if not the most versatile, trading instrument ever invented. Since options cost less than stock, they provide a high leverage approach to trading that can significantly limit the overall risk of a trade or provide additional income.
To me an option is like renting a stock, with the intent to turn around and “Sell the Rental” to someone else when the stock moves in the direction you want.
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