Optionsellers.com

How Do You Manage Option Selling Risk?

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Sinopse

Hi this is Michael Gross, Co-author of McGraw Hills “The Complete Guide to Option Selling” and Director of research here at optionsellers.com. I'm here with your bi-monthly option seller video lesson. The topic of this week's lesson is The Margin Cushion. You know I talked to a lot of prospective investors here at our firm and one of the top questions I get is: • How are you going to protect my money? • How are you going to protect me from downside risk? There is a lot of risk in option selling • How do I avoid that? • How do I stay away from losing money? And there's a couple answers to that question but one of the primary answers is option selling is no different than any other investment, in that you can lose money in it; look we're all adults here you're going to have losing traits. Option Selling is not perfect; we think it's a superior strategy but it's not perfect and if you're going to be an option seller you're going to have to accept the fact that sometimes trades are going to lose money, someti