16 lines
1.1 KiB
Plaintext
16 lines
1.1 KiB
Plaintext
142 • The Intelligent Option Investor
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Unlike some books, this book includes only a handful of strategies,
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and most of those are very simple ones. I shun complex positions for two
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reasons. First, as you will see, transacting in options can be very expensive.
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The more complex an option strategy is, the less attractive the potential
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returns become. Second, the more complex a strategy is, the less the inher-
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ent directionality of options can be used to an investor’s advantage.
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Simple strategies are best. If you understand these simple strategies
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well, you can start modifying them yourself to meet specific investing sce-
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narios when and if the need arises. Perhaps by using these simple strategies
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you will not be able to chat with the local investment club option guru
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about the “gamma on an iron condor, ” but that will be his or her loss and
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not yours.
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Chapter 12 looks at what it means to invest intelligently while under-
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standing the two forms of risk you assume by selecting stocks in which to
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invest: market risk and valuation risk. |