Why Trade Options

With the tremendous growth that has occurred in the option markets over the years, it should come as no surprise that options provide an excellent trading opportunity. As you have probably been able to gather thus far, buying options responsibly can provide a greater level of security to traders, allowing them to rest easy during the day and sleep better at night. Options give traders more time to think about their positions without worrying about how much they could potentially lose. As one family friend puts it, buying options enables the trader to leave the computer screen and hit golf balls. If traders were to take positions in the actual security, or sell options, they must closely monitor their positions and only watch others hit golf balls on ESPN.

If you have any other questions concerning option basics, mechanics, or other specifics, refer to any of the option literature listed at the end of this book, or contact your broker or any of the option exchanges listed in the appendix.

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