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Why Options?
When options are traded correctly and carefully they can
generate a higher percentage return for a given level of risk, versus buying
stocks. Options provide more leverage and better control and predictability of
risk, unlike what can be obtained with
buying stocks outright. Most people who have been trading options for a few
years eventually find themselves only buying and/or writing options and
completely avoiding stocks all together.
You've probably heard about hedge funds that produce higher
returns, traditionally targeted to high net worth individuals. One way that
hedge funds generate higher returns and control risk is that they leverage the
power of options. In contrast, most mutual funds do not leverage options
and usually only buy stocks long. Therefore, if you want to participate in the
power of options and get higher returns one approach is to write a check for a
minimum of $50,000 to buy into a hedge fund, pay a hefty up-front load and ongoing monthly
management fee, and let someone else manage your money while taking the risk
that it's a Ponzi scheme; or you can manage your own money starting with as little as $1000,
requiring only a few hours of work per week using our advisory service, and
you can learn a new, powerful investment strategy while your at it.
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