SIE: 4.1.2. Options Strategies

Taken from our SIE Online Guide

4.1.2. Options Strategies

When you buy or sell an option, you are speculating on the direction of the market. If you hold a put or a call, you are able to use leverage to greatly magnify potential gains or losses. In contrast, if you write a put or a call, you are choosing to generate current income at substantial risk.

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