I meet at least 1 person per week that asks me about PowerOptions, and I always get the same question after my introduction; Isn’t option trading risky? People on the street seem to all have a friend or neighbor who told them some horror story about losing everything in the options market.
I reply, “Yes, option trading can be risky. But, less risky the way we do it.”
The fact is, most portfolios are just sitting there, they aren’t gaining equity and they aren’t creating an income for the owner. It’s a real shame actually, the investments are stagnant. I think most of the investing world would be remiss to not consider using some stock option trading techniques to round-out and bolster their personal stock portfolio.
Does this mean you should start taking $5,000 or $10,000 at a time and buying some Google (GOOG) call options? Of course not. The fact is, most option buyers are the ones that are taking on all the risks in the options markets. Options sellers are controlling risk and generating income. Everyone should take some time to learn options trading. Nothing ventured – nothing gained.
Selling options against stock that is just sitting around in your account is much safer and can be a great way to get those stagnant stocks doing something for you. The most popular of the option selling strategies is covered call investing.
Here are some more articles that explain and support the strategy:
Covered Call Strategies (The basics)
Covered Call Investment Strategy (The Course)
[tags]covered calls, stock option trading, covered call investing[/tags]