You Should Never Trade Options If You Don't Know This… :: The Market Oracle ::
Have you ever heard someone say “90% of people that trade options lose money.”? I certainly have. Looking at an options chain can be a dizzying exercise for the uninformed. Delta, Gamma, Theta, Rho, Vega – and let’s not forget – implied volatility? Single, spread, butterfly, condor. What does it all mean? So what is an option from a high level view? At the end of the day, an options contract is just a derivative like any other stock, bond, ETF, or other tradable security based on an underlying asset. Most people will look at these other forms of derivatives and ha...