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Chapter 1. Introduction to Options

Chapter 1. Introduction to Options

Why is it that options are so misconceived as a minefield of danger and risk? How can we make sense of this and look at options as tools to limit our risks, maximize our returns, and SEE WHAT WE’RE DOING at the same time? This is the essence of OptionEasy and this book—how to make seemingly complex things simple.

Options are becoming more and more popular each day. Far from being confined solely to the institutions and professional money managers, options trading is now a worldwide phenomenon for “retail” traders of all walks of life. The concept of options is still, however, treated with fear and trepidation in some quarters. When I first embarked upon serious trading, one of my friends warned me profusely about what I was getting into. I calmly pointed out that I wasn’t a gambler and that I would be perfectly safe and successful. And so can you.

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