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Showing posts with the label margin-requirement-for-selling-put-options

THE OPTIONS COURSE- Margin and Risk

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THE OPTIONS COURSE Margin  and  Risk When we refer to risk management, we speak of the ability to han dle with a degree of skill the possibility of loss. Of course, when  dealing with trading and the market, there are many kinds of  risks. Overall, what we are trying to do is make money while at the same  time managing the possibility of loss. This definition could be considered  the Optionetics motto.  Risk management isn’t the sexiest of terms; people don’t run out and  study everything they can on the subject when they hear it. This has to  do with the fact that risk management often discusses how to avoid  losses, not how to make huge returns.  Newsletters and stock-picking  sites post claims of high returns on individual plays, but rarely state they  controlled their losses with proper risk management. It just doesn’t sell.  Baseball has taught us that people prefer a home run to four straight  base hits, but a knowledgeable coach or trader knows that it’s the