There are three primary reasons why people trade options.
Speculation is the most common reason why people get involved in trading options. Trading, and not buying and holding, is a loser’s game. It is like being in Las Vegas without leaving home. With trading options, the available leverage is enormous. At this time, speculative options trading is at an all-time high which is another indicator that the market is about to reverse itself soon.
Monday Morning Program recommends against this sort of activity.
Using options appropriately can provide insurance against market losses. Given our investment style, Monday Morning members don’t need it.
3. Generating extra income
The Monday Morning Program recommends writing (selling) options on a market index exchange-traded fund (ETF). It is as safe as it is effective.You need to login to view the rest of the content. Please Login. Not a Member? You can now sign up for a one-month free trial membership. Join Us