Making Money Minute with Ron Hiebert - Options
Stock options are risky. Most investors that speculate on them lose money. Unlike common shares, options have limited lifespans. You can hold common stocks indefinitely in the hope that their value may rise, but options have an expiration date. If an option is not sold or exercised prior to the end date, it becomes worthless. For this reason, an option is considered a wasting asset. As each day passes, the time window to make money decreases. To profit trading stock options, you have to be right in three different ways: price direction, the magnitude of price-change, and the time frame. This is easier said than done.
