Why you should not buy options?

More precisely, call option buyers suffer from the erosion of the time value of their options. With each passing day, the time value of the options decreases.

Why you should not buy options?

More precisely, call option buyers suffer from the erosion of the time value of their options. With each passing day, the time value of the options decreases. Therefore, in every boring session, call option buyers lose money and of course they also lose money in all negative trading sessions. Is trading with options risky? If you do your research before you buy, it's no riskier than trading individual stock and bond issues.

In fact, if done the right way, it can be even more lucrative than negotiating individual issues. Options trading requires a more practical approach than investing in stocks. You may want to exercise the option before expiration, and that means you'll need to keep a close eye on the price of related shares. You can set up alerts through your online broker.

Ivy Kolis
Ivy Kolis

General travel practitioner. Food fanatic. Friendly music evangelist. Wannabe food guru. Infuriatingly humble web enthusiast. Extreme beer advocate.

Leave a Comment

Your email address will not be published. Required fields are marked *