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"The Secret Psychology of Wealth"
A Weekend That Will Change Your Financial Life Forever! |
Options
Options
Options can assist both long term and short term investors in getting better returns for their money. In the United States, an investor can buy and sell options just like they do stocks. There are many strategies of options trading, but the 2 ways mentioned in this section corresponds to the 2 main ways of investment of stocks.
Long term investing
If you are a long term investor, options offers you a way to buy your stock at an even lower price than you can get from the stock market. Similarly, it gives you a way to sell you stocks at a higher price than the stock market. The analysis is identical to that of a long term investor in stock, because in actual fact you are buying the stock, using options as a means to do it.
Short term investing
If you are a short term investor, options offers you a way to control a stock for a fraction of the price. It is a means of leverage, and will give you significantly higher returns than investment purely in stocks. The analysis is again identical to that of a short term investor in stock, but in general, you are buying and selling the option itself. |
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