Why Stocks Can Be Riskier Than Options

 Simplified Version / Comprehensive Version


Why Stocks Riskier Than Options : Leverage
You risk lesser amount of money to control the same amount of stocks when option trading.


Why Stocks Riskier Than Options : Short Selling
A short seller risks unlimited loss and margin problems when trading stocks but an option trader only risk the price of a put option to profit from the same down move.


Why Stocks Riskier Than Options : Single Directional
Stock trading is single directional while option trading can be multi-directional.


Why Stocks Riskier Than Options : No Hedge
Stock options can hedge against itself and stocks but stocks can only be diversified.



Continue your journey of discovery...
Click Me For Content Index
Click Above For Content Index

Got Question / Suggestion?
What Is Hedging?
What Are Option Trading Risks?
What Are Option Strategies?
How Are Stock Options Priced?
Stock Options
Options Trading

Back To Main | Go To Option Trader's HQ

 
Javascript Tree Menu

Please LIKE Us

:


Follow Our Updates:
Keep in touch with our updates through RSS...NOW! Follow www.Optiontradingpedia.com on Twitter

Important Disclaimer: Options involve risk and are not suitable for all investors. Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither www.optiontradingpedia.com, mastersoequity.com nor any of its data or content providers shall be liable for any errors, omissions, or delays in the content, or for any actions taken in reliance thereon. Data is deemed accurate but is not warranted or guaranteed. optiontradinpedia.com and mastersoequity.com are not a registered broker-dealer and does not endorse or recommend the services of any brokerage company. The brokerage company you select is solely responsible for its services to you. By accessing, viewing, or using this site in any way, you agree to be bound by the above conditions and disclaimers found on this site.

Copyright Warning: All contents and information presented here in www.optiontradingpedia.com are property of www.Optiontradingpedia.com and are not to be copied, redistributed or downloaded in any ways unless in accordance with our quoting policy. We have a comprehensive system to detect plagiarism and will take legal action against any individuals, websites or companies involved. We Take Our Copyright VERY Seriously!

Site Authored by