THE OPTIONS COURSE- CONCLUSION
THE OPTIONS COURSE CONCLUSION Options, the most flexible financial instrument that exists today, provide unique investment opportunities to knowledgeable traders on a regular basis. However, the entire options arena can be a very complex and con fusing place in which to venture, especially for the novice trader. The pri mary reason for this complexity is the fact that options trading is a multidimensional process; and each dimension needs to be understood in order to trade successfully. Prior to initiating an options position, there are three main issues to consider: direction, duration, and magnitude. Direction refers to whether the underlying security will move up, down, or sideways. Duration refers to how long it will take for the anticipated move to take place. Magnitude refers to how big the subsequent move will be. In order to make a profit, the options trader must be correct in all three of these categories. This is the primary reason that many people