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A Brief Outline of the Uses of Options and How They Work By George Slater
Outline of the uses of options
Before we get into any fancy trading terms and strategies of options like bull spreads, ration back spreads, butterflies and condors, which just baffle the novice and are more often only traded in books, let's look at a few more practical uses of options.
Here I think you might want to check out my credentials at the end of this article. - OK hopefully you're back now. Well what can a normal stock trader or investor use options for? Well exactly what they are named as options I see three main uses that they are broken into.
1. Hedging = this was the original use of options and is an area much misunderstood by traders, inv... [ Read Article ]
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