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Friday September 03, 2010 |

Using Options

When
most people think of options they immediately think of risk and
that is good, options are all about risk.
Everyone has heard the story of the guy who squandered a
family fortune speculating in options but speculation is just one
side of the risk equation. Options
were originally invented to help portfolio managers find strategies
to eliminate risk.
During
the past ten years there has been an explosion in the variety of
option products and their applications and the reason is
simple -- options provide unparalleled versatility. Stock options allow investors
to build strategies tailored to their own needs.
For
example, a conservative investor worried about possible market
weakness may build hedge strategies to provide loss insurance or a
more aggressive investor may choose to build an speculative
strategy to take a position in a stock for just a fraction of the
cost of buying that security outright.
This
course begins with the basic question, "what is an
option" and progresses to the advanced strategies and
techniques used by professional traders to take advantage of the
modern capital markets. We'll
toss-in real world examples here and there and we promise to try
really hard not to make this any more complicated than necessary.
education
introduction
to options
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