Buying options tends to be less risky than selling options. When you buy an option, your risk is … See more

are financial derivative contracts that give buyers the right, but not the obligation, to buy or sell an
at a predetermined price (known as the "
") on or bef… See more

When it comes to options, buying them tends to be less risky than selling. That's because when you buy an option, you pay a premium upfront and your maximum loss is limited t… See more

That does not mean that buying options is without risks. First, you have the risk of losing the entire premium you paid if the option expires worthless, which happens if the underlyi… See more

While selling options comes with the specter of unlimited losses, in reality the risk profile is often more nuanced than that simplistic description suggests. For example, m… See more