Yes, theoretically you can lose 100% of your investment, and that can be scary, but you can limit that potential loss region through put/call spreads (where you thus open yourself up to more losses as a cost of hedging) and close that position for a profit.
Basically, I see options as lower leveraged risk. I can invest $400 instead of 4000 on a company, and get the same gain if not better (and a better ROI) with the max loss being the value of the option itself. So why the negative stigma to buying options? Selling covered/uncovered options I get as being scarier; but I'm allowed to sell covered options before I can buy options on most brokerages which is just bizarre
Submitted August 24, 2017 at 12:14PM by Alex_the_White http://ift.tt/2vajzxZ
