Monday, August 3, 2009

What to do if you thinks stock will be stagnate?

I read the Sunday Times and the usual interview with someone about their financial lifestyle. Interesting, the person mentioned he only buy options and never individual stock. I don't know much about options but I know they are leveraged tools. I think it brings the concept that risks is relative to a person knowledge.

Nevertheless, I had in the past, read somewhere saying you should do covered call when you feel the stock will be stagnate. I read through several times and still cannot fathom on it.

Guess, options are still too risky for me till I can understand it.

More resources
http://www.cboe.com/LearnCenter/pdf/CoveredCallsStrategy.pdf

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