A friend of mine recently asked me the following question – What exactly are options – and why would anyone trade options as opposed to stocks. I will try and explain what exactly options are through the following points of why anyone would trade options. There are at least five reasons why options can prove […]
There are only two reasons that I consider looking at options:
Purchasing stocks (that I already want) at a lower price than the current market price
Basically, either for additional income or for bargain shopping. And, as it turns out, neither of these reasons are good enough when the market is clearly bullish.