Postscript 
Option strategies cannot be unilaterally classified as aggressive or conservative. 
There are certainly many aggressive applications, the simplest being the outright pur­
chase of calls or puts. However, options can also have conservative applications, most 
notably in reducing some of the risks of common stock ownership. In addition, there 
are less polarized applications, particularly spreading techniques, that allow the 
investor to take a middle-of-the-road approach. 
Consequently, the investor himself-not options--becomes the dominant force 
in determining whether an option strategy is too risky. It is imperative that the 
investor understand what he is trying to accomplish in his portfolio before actually 
implementing an option strategy. Not only should he be cognizant of the factors that 
go into determining the initial selection of the position, but he must also have in mind 
a plan of follow-up action. If he has thought out, in advance, what action he will take 
if the underlying entity rises or falls, he will be in a position to make a more rational 
decision when and if it does indeed make a move. The investor must also determine 
if the risk of the strategy is acceptable according to his financial means and objec­
tives. If the risk is too high, the strategy is not suitable. 
Every serious investor owes it to himself to acquire an understanding of listed 
option strategies. Since various options strategies are available for a multitude of pur­
poses, alrrwst every money manager or dedicated investor will be able to use options 
in his strategies at one time or another. For a stock-oriented investor to ignore the 
potential advantages of using options would be as serious a mistake as it would be for 
a large grain company to ignore the hedging properties available in the futures mar­
ket, or as it would be for an income-oriented investor to concentrate only in utilities 
and Treasury bills while ignoring less well known, but equally compatible, alterna­
tives such as GNMAs. 
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