Many investors are afraid of investing in options. Option investing requires a full understanding of how volatility affects an underlying stock, and some options strategies involve a lot of risk even if you know exactly how options work.
What many people don’t realize, however, is that options can actually reduce the overall risk in your portfolio, and it’s not hard to find brokers that will let you take advantage of options in your investing. Below, we’ll give you a short guide on how to trade options.