Summary

As you can see, options are very flexible. If you stick to strategies that only require buying options, then you are limiting your downside to the cost of the options, but not realizing all the benefits you can get from the different ways of trading them. Selling options does not have to be risky (for example look at the covered call), and there are a multitude of ways to profit with varying degrees of risk.

To profit from options you only need to have some view of the market, and as you can see you do not even have to know whether it is going up or down, but just have a sense of the volatility. Technical analysis gives you the tools to determine the most likely outcome, and from that you can decide what kind of strategy is appropriate.

At the end of each module there is a quiz. You can take a quiz at any point, but we suggest you view each module before taking the quiz. When you’re ready to start the quiz, click the take quiz ‘Start’ button below -: