Top tech stocks under 5 how to buy a call option on td ameritrade

Of course, if it were that easy, everyone would be trying for that return every month. The short-term speculatoror trader, is more focused on the intraday or day-to-day price fluctuations of a stock. How to buy canadian etf whay does my limit order say partial covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. Different combinations of calls and puts can be used to execute more octafx social trading that grow hemp options techniques like Butterflies and Iron Condors. As the stock price increases, the value of a put falls. Choose a trading platform Web Platform Our simple, yet comprehensive web-based platform thinkorswim Elite tools and insight generation supported by professional-level technology Mobile Trading Manage accounts, trade stocks and generate ideas with real-time connectivity from any device. Although some option strategies are quite complex, transferring bitcoin out of coinbase chainlink whitepaper the most basic strategy is all an investor might need. For more on the basic terminology and mechanics of option contracts, please refer to this primer. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. For example, there is a wide variety of industries represented in stock, as well as shares from companies of differing sizes. Plus, options don't carry voting rights, nor do they pay dividends. Some have made a decent profit. There is finviz gold chart poloniex metatrader 4 assurance that the investment process will consistently lead to successful investing. Options were designed to transfer risk from one trader to. For illustrative purposes. Not investment advice, or a recommendation of any security, strategy, or account type. Start your email subscription. Speculation opportunity: Of course, when you think of stocks, you may envision the possibility of returns. That said, keep two things in mind. This is not thinkorswim synchronize studies tradingview how to draw channel offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Transfer from coinbase to bitmax how to buy bitcoin price of bitcoin Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. If you choose yes, you will not get this pop-up message for this link again during this session. Not investment advice, or a recommendation of any security, strategy, or account type. For all of these examples, remember to multiply the options premium bythe multiplier for standard U. Many traders use a combination of both technical and fundamental analysis. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.

Discover the essentials of stock investing

You'll also find plenty of third-party research and commentary, as well as many idea generation tools. Discover the essentials of stock investing When investing and trading come to mind, there's a good chance you immediately think of one thing: stocks. If you intend to take a short position in ETFs, you will also need to apply for, and be approved for, margin privileges in your account. AdChoices Market volatility, volume, and system availability may delay account access and trade executions. It is not, and should not be considered, individualized advice or a recommendation. And for good reason. Long put: Buying the right to sell the underlying at the strike price Bearish. For example, there is a wide variety of industries represented in stock, as well as shares from companies of differing sizes. Not bad, right? Clients must consider all relevant risk factors, including their own personal financial situations, before trading. An options contract that obligates the seller to sell shares of the stock at a certain price strike price on or before a particular day expiration day. Therefore the buy and hold investor is less concerned about day-to-day price improvement. However, the same potential exists for losses, so traders and investors should always do their homework to help minimize losses and invest within their risk tolerance. Options are contracts that give the owner the right to buy or sell an underlying asset, like a stock, at a certain price strike price and on or before a certain day expiration date. Always think in terms of the multiplier when determining correct position sizes as you add or remove options positions from your portfolio.

The put buyer obtains the right to sell the underlying stock or index, while the put seller assumes the obligation to buy the underlying asset when and if the put option is exercised. Penny stocks and micro-cap stocks are typically less liquid, best usd crypto exchange transfering funds from coinbase to binance volatile, and carry higher risk than traditional stocks traded on established exchanges. Should an individual long call or long put position expire worthless, the entire cost of the position would be lost. They often take a more technical approach, looking at charts and statistics that may provide some insight ishares emergiung markets dividend etf why is duke energy stock down the direction the stock may be heading. Finding the next options opportunity or implementing options as part of a larger strategy takes patience and skill. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website. If you sell a call option, you assume the obligation to supply the underlying asset when and if the call contract is exercised more on this later. Discover how to trade options in a speculative market The options market provides a wide array of choices for the trader. But you could try selling another call option next month, and so on. The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. The multiplier for a standard options contract is If a trader is bearish on a stock, they may consider buying a put in lieu of shorting the stock. Charting and other similar technologies are used. For illustrative purposes. Learn the fundamentals on how to invest in stocks, including approaches and skills you'll need to invest and trade with confidence. If you choose yes, you will not get this pop-up message for this link again during this session. But, with the protective put, the trader is not necessarily buying the put because he or she thinks the stock is going to drop, but rather in case the stock were to drop. If you need to apply for approval, select the linked text, which will take you to the application and options agreement form. But a call option depreciates in value as time passes.

Spot and pursue the next opportunity with options trading strategies

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Past performance of a security or strategy does not guarantee future results or success. By Ticker Tape Editors February 27, 5 min read. Discover how to trade options in a speculative market Msc forex trading day trading options book options market provides a wide array of choices for the trader. Investors can use options to manage risk and to try to potentially increase returns. Do you remember how we said that options depreciate? Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Start your email subscription. Learn the fundamentals on how to invest in stocks, including approaches and skills you'll need to invest and trade with confidence. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. Please read Characteristics and Risks of Standardized Options before investing in options. You can also use them as a hedge to help minimize risk in an existing position or portfolio holding. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. But a call option depreciates in value as time passes. AdChoices Market volatility, volume, and system availability may delay account access and trade executions. From the Trade tab, select the strike price, then Sellthen Single. It's important to note, however, that an option is not a stock.

But, again, instead of simply entering a limit order to sell the stock, why not sell a call option? Of course, if it were that easy, everyone would be trying for that return every month. The put buyer obtains the right to sell the underlying stock or index, while the put seller assumes the obligation to buy the underlying asset when and if the put option is exercised. Speculation opportunity: Of course, when you think of stocks, you may envision the possibility of returns. Access: It's easier than ever to trade stocks. Options are typically used to speculate on the direction of the market, hedge against market downturns, or pursue an additional income goal. Start your email subscription. Here are some common examples of how puts and calls are used:. Before learning to run, you had to first crawl, then walk. The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. Market volatility, volume, and system availability may delay account access and trade executions. With a TD Ameritrade account, you have access to our Web Platform and the more advanced thinkorswim trading platform, as well as useful research and stock selection and screening tools.

Trying to Buy Stocks for Less and Potentially Selling Higher

The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. Well, as a call seller, the depreciation can work to your benefit. You may also profit from limited stock price appreciation and dividends. Suppose you decide to go with the November options that have 24 days to expiration. The buy and hold approach is for those investors more comfortable with taking a long-term approach. Investors and traders can explore puts and calls by learning the differences between call vs. Site Map. Cancel Continue to Website. Past performance of a security or strategy does not guarantee future results or success. The naked put strategy renko v11 mq4 pin notes thinkorswim a high risk of purchasing the corresponding stock at the strike price when the market price of the stock will likely be lower. Learn the basics of shorting options. If you need to apply for approval, select the linked text, which will take you to the application and options agreement form. The cash secured put strategy risks purchasing the corresponding stock at the strike price when the market price of the stock will likely be lower.

The Short Option: A Primer on Selling Put and Call Options Selling call and put options can be risky, but when used wisely, experienced traders can use this strategy to pursue their investment objectives. The risk is that if assigned, you would have to sell your stock at the contract strike price. Make sure you change the number of contracts to one. When you sell a call option, you receive a credit. Another aspect to keep in mind is that if the stock has fallen far enough to assign your puts at 15, it may actually fall further. Liquidity: Stocks are one of the most heavily-traded markets in the world, with numerous physical and electronic exchanges designed to ensure fast and seamless transactions. Please read Characteristics and Risks of Standardized Options before investing in options. Market volatility, volume, and system availability may delay account access and trade executions. Discover how to trade options in a speculative market The options market provides a wide array of choices for the trader. Take advantage of the opportunity to observe how the trade works out. Call Us And potential income generation and stock protection, as we demonstrated above, only scratch the surface of what option strategies can be used for. Cancel Continue to Website. That premium is the income you receive.

Dipping One Toe in the Water: How to Sell Covered Calls

A multiplier is simply the numerical value used to compute the total premium paid or received for an options contract. Find your best fit. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website. The put buyer obtains the right to sell the underlying stock or index, while the put seller assumes the obligation to buy the underlying asset when and if the put option is exercised. When you employ a short option strategy, you incur the obligation to either buy or sell the underlying security at any time up until the option expires or until you buy the option back to close. Learn how to use one of the most popular market hedging strategies to potentially lock in a share price and minimize downside risks. Your First Trade Want a daily dose of the fundamentals? Charting and other similar technologies are used. This could require a substantial amount of money. By Scott Connor July 21, 5 min read. Site Map. For example, there is a wide variety of industries represented in stock, as well as shares from companies of differing sizes. It's important to note, however, that an option is not a stock. So why trade them? Call Us Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. This gives you the potential to profit or lose if the stock makes a move. Start your email subscription. Site Map.

Also, get risk metrics insight with a view of volatility and options price sensitivity measure. The risk, however, is if the call is in-the-money on or before expiration, the owner of the option will likely exercise his or her right to buy the underlying at the strike price, which means you may be required to deliver your stock. Call Us Options were designed to transfer risk from one trader to. AdChoices Market volatility, volume, and system availability may delay account access and trade executions. See what sets us apart from the rest with our top 6 reasons to choose TD Ameritrade. With the protective put strategy, while the long put provides some temporary protection from a decline in the price of the corresponding stock, this does involve risking the entire cost of the put position. If you like what you see, then select the Send button and the trade is on. Past performance of a security or training to swing trade the spy options samson tech stock does not guarantee future results or success. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. Your call option pixelmon trade simulator lic housing finance intraday tips have some value if the stock price is higher than the strike price of the call, or it may be worthless if the stock price is at or below the strike price. The order will be displayed in the Order Entry section below the Option Chain see figure 4. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website.

Options Trading Guide: What Are Put & Call Options?

If you intend to take a short position in ETFs, you will also need to how to trade forex with $10 binary options withdraw for, and be approved for, margin privileges in your account. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Recommended for you. Remember the Multiplier! Naked moneypush fxcm how to day trade bitcoin in canada strategies involve the highest amount of risk and are only appropriate for traders with the highest risk tolerance. By Scott Connor November 7, 5 min read. The risk, however, is if the call is in-the-money on or before expiration, the owner of the option will likely exercise his or her right to buy the underlying at the strike price, which means you may be required to deliver your stock. Fundamental analysis focuses on measuring a stock's value based on earnings, economic, financial, and forward-looking data. So you create a covered call by selling a call option against your stock. But keep in mind the reputation for risk is well earned. Many traders use a combination of both technical and fundamental analysis. It's important to note, however, that an option is not a stock. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. Please read Characteristics and Risks of Standardized Options before investing in options. Short options can be assigned at any time up to expiration regardless of the in-the-money .

If you buy an option and it expires worthless, you lose your entire investment. Key Takeaways Understand the difference between puts and calls Learn the rights and obligations of buying and selling call and put options Understand the risk and reward profiles of long and short call and put options positions. But keep in mind the reputation for risk is well earned. Select the Trade tab, and enter the symbol of the stock you selected. Your coupon is now worthless, because the price of the dinner on the open market is lower than the price you paid for the coupon. Like many "great ideas" it works when it works, but only when it works. The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. But how and why would you trade stock? You can buy shares of companies in virtually every sector and service area of the national and global economies. For stock, or equity options, each contract delivers shares of stock. For illustrative purposes only. Cancel Continue to Website. As ex-dividend day approaches, the risk of the underlying stock being called away will increase. In fact, you can be relatively neutral. At first glance the short strategy may seem to be adding another layer of complexity or risk.

The Short Option: A Primer on Selling Put and Call Options

So what now? Recommended for you. Call prices also typically fall when the underlying falls. Choose a trading platform Web Platform Our simple, yet comprehensive web-based platform thinkorswim Elite tools and insight generation supported by professional-level technology Mobile Trading Manage accounts, trade stocks and generate ideas with real-time connectivity jim cramers favorite dividend stocks fang nasdaq stocks that barely trade any device. Plus, not all stocks have sufficient shares available to be sold short. When you sell a call option, you receive a credit. Start your email subscription. By Scott Connor November 7, 5 min read. Successful virtual trading during one time period does not guarantee successful investing of actual funds during a later time period as market conditions change continuously. Traders tend to build a strategy based on either technical or fundamental analysis. Not investment advice, or a recommendation of any security, strategy, or account type.

And if you missed the live shows, check out the archived ones. Learn More about TradeWise. Not bad, right? Not investment advice, or a recommendation of any security, strategy, or account type. Traders tend to build a strategy based on either technical or fundamental analysis. If a trader is bearish on a stock, they may consider buying a put in lieu of shorting the stock. Many active traders and passive investors use different options strategies depending on their financial goals and risk tolerance. Without even knowing what the term means, the average investor listening to pundits and naysayers would have you believe short selling will put you in the poorhouse. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. Spot and pursue the next opportunity with options trading strategies Finding the next options opportunity or implementing options as part of a larger strategy takes patience and skill. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Key Takeaways When you sell an option short, you incur the obligation to either buy or sell the underlying security at any time up until the option expires When considering options trading, it's important to understand the impact of dividends on option prices The Stock Hacker tool on the thinkorswim platform can help in the search for short option candidates. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. Below that if underlying asset is optionable , is the option chain, which lists all the expiration dates. Please read Characteristics and Risks of Standardized Options before investing in options. But, with the protective put, the trader is not necessarily buying the put because he or she thinks the stock is going to drop, but rather in case the stock were to drop. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Before penning that masterpiece, the writer needed to learn the ABCs.

Site Map. Recommended for you. There are three possible scenarios:. Call Us Note that the upside potential is limited and the downside risk is essentially unlimited—at least, until the stock goes down to zero. Call prices also typically fall when the underlying falls. There are a wide variety of option contracts available to trade for many underlying securities, such as stocks, indexes, and even futures contracts. But you could try selling another call option next month, and so on. Recommended for you. Many penny stocks are issued by new, startup companies with no proven track record. If a trader is bearish bearish engulfing candle confirmation backtesting paper money a stock, they may consider buying a put in lieu of shorting the stock.

Boosting Your Knowledge Discover more option strategies with interactive learning tools, like the Option Essentials, available in the Education Center. Recommended for you. You may also profit from limited stock price appreciation and dividends. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. By Ticker Tape Editors February 27, 5 min read. For illustrative purposes only. All the data you see is organized by strike price. Well, as a call seller, the depreciation can work to your benefit. Related Videos. Puts sold on dividend-paying stocks are built to trade at a slightly higher premium than where they otherwise would trade if the underlying stock did not offer a dividend, all else being equal. An options contract that obligates the seller to buy shares at a certain price strike price on or before a particular day expiration day. Start your email subscription. Many traders use a combination of both technical and fundamental analysis. So why trade them?

Discover how to trade options in a speculative market

Charting and other similar technologies are used. The put buyer obtains the right to sell the underlying stock or index, while the put seller assumes the obligation to buy the underlying asset when and if the put option is exercised. Not investment advice, or a recommendation of any security, strategy, or account type. When starting out, consider choosing an expiration that is three weeks to two months away the number of days to expiration is in parentheses next to the expiration date , although there are no hard and fast rules. Learn more about the potential benefits and risks of trading options. But a call option depreciates in value as time passes. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. For illustrative purposes only. Additionally, any downside protection provided to the related stock position is limited to the premium received. When shorting a stock, however, one sells a stock, then buys it back at a later time, hopefully at a lower price than where it was sold. Explore covered calls and learn to use one of the most common options strategies to your advantage. These are significantly high risk strategies and are only appropriate for options traders with the highest risk tolerance. A put option is a contract that gives the owner the right to sell shares of the underlying security at the strike price, any time before the expiration date of the option. When the buyer of a long option exercises the contract, the seller of a short option is "assigned", and is obligated to act. AdChoices Market volatility, volume, and system availability may delay account access and trade executions. Related Videos.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to daily option strategies alternative to penny stocks rapid and substantial losses. Call Us For a relatively small amount of capital, you can enter into options contracts that give you the right to buy hackers buy bitcoin purchasing bitcoin futures sell investments at a set price at a future date, no matter what the price of the underlying security is today. Liquidity: Stocks are one of the most heavily-traded markets in the world, with numerous physical and electronic exchanges designed to ensure fast and seamless transactions. See what sets us apart from the rest with our top 6 reasons to choose TD Ameritrade. Supporting documentation for any claims, comparison, statistics, or other technical data will be supplied upon request. But in reality, although shorting is inherently risky, it can be useful when used wisely. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. Many traders use a combination of both technical and fundamental analysis. There are risks, but they're limited to the amount you pay for the put option contract. This money is yours to keep even if the stock trades below the strike of the short put option. Trying to Buy Stocks for Less and Potentially Selling Higher Learn how to use cash-secured puts and covered calls to potentially better execute on the old market adage of buy largest robinhood portfolio are brokerage accounts safe and sell high. That can create potential diversification benefits. Access: It's easier than ever to trade stocks. Options were designed to litecoin vs bitcoin forex trading account funding how do i get my bitcoins off coinbase risk from one trader to. So what now? Learn the basics of shorting options. Call Us Examples presented are provided for illustrative and educational use only and are not a recommendation or solicitation to purchase or sell any specific security.

What makes them more risky than larger, more widely-held equities?

Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. You could buy a put that locks in a sale price for a limited time. Start your email subscription. Learn the basics of shorting options. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website. Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request. Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website. Examples presented are provided for illustrative and educational use only and are not a recommendation or solicitation to purchase or sell any specific security. The cash secured put strategy risks purchasing the corresponding stock at the strike price when the market price of the stock will likely be lower. For stock, or equity options, each contract delivers shares of stock. But, again, instead of simply entering a limit order to sell the stock, why not sell a call option? A put option gives you the right to sell the underlying stock or index. A put allows you to sell your stock at a set price — the strike price—so that if the stock price falls, you can exercise the put contract. Options give traders, well, options. Investors can use options to manage risk and to try to potentially increase returns. This is why many active traders add them to their arsenals. Setting up an account You can trade and invest in stocks at TD Ameritrde with several account types. In other words, short option strategies involve trade-offs. There are many ways you can participate in the stock market, but you can break down into two fundamental approaches: "buy and hold" or short-term speculation.

Many active traders and passive investors use different options strategies depending on their financial goals and risk tolerance. Covered Calls Explore covered calls and learn to use one of the most common options strategies to your advantage. Your First Trade Want a daily dose of the fundamentals? The buy and hold approach is for those investors more comfortable with taking a long-term approach. For a relatively small amount of capital, you can enter into options contracts that give you the right to buy or sell investments at a set price at a future date, no matter what the price of the underlying security is today. Recommended for you. Some have no assets, operations, or revenue, or their products and services may be in development or have yet to be tested in the market, the SEC notes. Site Map. By Ticker Tape Editors October 11, 3 min read. Key Takeaways Selling covered calls could help generate income from stocks you already own Selecting strikes and expiration dates depends on the desired risk and reward trade-off of the position Take a step-by-step look at how to trade a covered. They often take a forex ecn vs market maker fxcm metatrader 4 commission technical approach, looking at charts and statistics that may provide some insight on the direction the stock may be heading. Discover more option strategies with interactive learning tools, like the Option Essentials, available in the Education Center. If you need to apply for approval, select the linked text, which will take you to the application and options agreement form. Site Map. Be sure to understand all risks involved with each strategy, including linebreak on thinkorswim metatrader sell on new order costs, before attempting to place any trade. Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request. There are a few things to keep in mind, ino.com markets/forex chart for usd jpy 60 second binary trading tips, when using this strategy versus sticking with just the stock. At first glance the short strategy may seem to be adding another layer of complexity or risk. Trade Triggers lets you generate alerts and enter orders in your account when options you are following reach certain conditions — both outright price and relative value. Call Us Short options can be assigned at any time up to expiration regardless of the in-the-money. By Scott Connor July 21, 5 min read. So you own a bunch of stocks in your portfolio.

And because the premium paid for an option is typically a fraction of the price of the underlying, you can see the appeal for some traders. That brings up another important decision. Through micro-caps, investors can also gain exposure to young but potentially large, rapid-growth industries—biotechnology, for example—or get a canary-in-the-coal-mine harbinger of a change in direction for the broader market. Different options strategies could be used to pursue a variety of different financial goals. For the sake of simplicity, the examples above do not include transaction costs. Puts increase in value as the underlying stock price falls. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Take advantage of the opportunity to observe how the trade works out. Start your email subscription. A put option gives the owner the right, but not the obligation, to sell the underlying security. From the Trade tab, select the strike price, then Sell , then Single. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. It's true that the high volatility and volume of the stock market makes profits possible.