Wealth Systems: Options, Part I
Wall Street's Biggest Open Secret
Options are a realm where fortunes are made and dreams can be dashed in an instant.
Picking the direction a stock will travel (up or down) is difficult. Adding time constraints and other challenges make Options a more demanding game than Equities.
Options (particularly writing them) can be an incredibly rewarding wealth engine to consider building for yourself once you understand the dynamics better.
We’re publishing a 3-part special series on Options for that reason.
Introduction to Options
Imagine a bustling marketplace, not unlike those vibrant bazaars of old, where traders and merchants haggle over prices and deals.
In this modern financial bazaar, options are akin to having a VIP pass.
They are, simply put, contracts that bestow the holder the right, but not the obligation, to buy or sell an asset at a predetermined price, known as the strike price, within a specified time frame.
Think of it as placing a reservation at an exclusive restaurant – you have the right to dine there on a par…