- Wealth PMS
Now that we have a fair understanding of the nuances of what options are and what are the factors that influence their pricing and movement, let’s move ahead to try and see how they fit into our portfolio. An Option trades similar to a stock but unlike a stock has a fixed life. That, and the fact that a buyer can lose all her investment in it, makes them appear risky. You can’t trade options blindly. A better way is to construct strategies that can be beneficial without exposing us to the risk of total ruin. Let’s . . .