Can you really make money trading options?

Answers:1   |   LastUpdateAt:2012-07-20 21:34:02  

Question
saku..
Asked at 2012-07-18 23:49:08
I'm beginner in investing and I want to know if it is at all possible to make money from trading options. It looks quite complicated but my broker told me options can provide unlimited return with limited risks. Any of you made any money from options? Any sites or books you recommend?
Answer1VolAnswered at 2012-07-20 21:34:02
Yes, there are many strategies to use to make money with the choices you can make money in up, down and sideways markets . However, most are not suitable for beginning investors. The only exception is covered calls. Write on the populations of the calls of their property increases their statements with almost no risk.

Besides that , I suggest you start looking at stocks as their prices and volatilities determine the price of the options. A real options trader should also be familiar with the Black-Scholes formula for option pricing . There are many books on the subject.
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