Writing Options: Higher risk higher reward | Blog Brings Profit For You
  • Recover Lost Money Plan

    A number of traders have lost their money in the market due to wrong trading advice or wrong decisions and emotions. We keep on getting a number of requests for helping these traders recover their lost money. Thus, this was the genesis of Recover Lost Money Plan. We are proud to say that till date we have helped 1290 people recover their lost money. Recover Lost Money in Market

  • Our Most Successful Intraday Tip

    Jackpot tip, as the name suggests has the potential to make you a Millionaire as it is not the number of tips one trades; but it is the accuracy of a single tip which has the potential to make you a Millionaire. This tip is a value for money for all i.e whether one can see the trading terminal or not or is dealing through a broker on phone at BSE, NSE or in Future and Options segment.
    Click on Jackpot Sure Shot Tip to know more...

Subscribe to this blog

Subscribe to full feed RSS
What is Daily Market State???
Enter your Email

Preview | Powered by FeedBlitz

Writing Options: Higher risk higher reward

Posted By On 10/18/2008 07:47:00 AM Under

1. It is a known fact that returns is directly proportional to the risk undertaken and similarily returns rises when one takes higher risk. Options writers have higher chance of making money by virtue of time decay factor and voaltility associated with the market. Always remember that Option writers loss is unlimited but returns is limited.

2. As a word of caution option writer has a higher risk of losing money as his risk is higher as he is obligated to take or provide the delivery and if trend reverses the option writer is under a lot of tension and financial constraint. Thus this portfoli is restricted to the professionals and do not venture in this arena unless you are a professional option writer or has sufficient financial depth to bear the loss. Moreoer remember that option writers have to be satisfied with lower returns per transaction.

Most Read Content