Aren’t Option strategies extremely risky?
Options are not inherently risky any more than buying a stock is risky. It is the investment strategy which can elevate risks. By the same token, however, a properly designed strategy can lower risks. Many strategies use highly leveraged Option positions and rely on speculation. These strategies may provide opportunity for high returns but also expose investor capital to very high risks. When these strategies have failed, they make headlines in the news. Options end up with the blame instead of the strategy.
