Stocks option trading is it risky

Stocks Option Trading Is it Risky?

According to some experts, the intense risk takers are those that invest in stocks option trading. They are also called option players. These players usually purchase short-life assets in the hope that it will have an enormous increase in value. If the option players are able to purchase the right asset, they can expect a return of 500%, which is really huge money.

Choosing the right short-life asset is not an easy task. Besides, you will also need to wait for about two months before you can determine if you win or loose. You will lose everything if the stocks option did not increase in value or if its value remained flat. This is the main reason why many traders claim that option players are risk takers. It would have been much better if they invested in stocks because even if the value remained flat, they will not lose the money; the only thing that these traders will lose is the opportunity of investing in a much better stock.

Options are considered declining asse

 

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