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The option tricks SCECRETS

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  The option tricks SCECRETS   tricks SCECRETS  Traders often jump into  trading options  with little understanding of the  options strategies  that are available to them. There are many options strategies that both limit risk and maximize return. With a little effort, traders can learn how to take advantage of the flexibility and power that stock options can provide An option buyer can make a substantial return on investment if the option trade works out . This is because a stock price can move significantly beyond the strike price. For this reason, option buyers often have greater (even unlimited) profit potential . Basics of Option Profitability A call option buyer stands to make a profit if the underlying asset, let's say a stock, rises above the strike price before expiry. A put option buyer makes a profit if the price falls below the strike price before the expiration.  The exact amount of pr...