Where Do I Start?: Back in the Game

Why Spreads Work

Where Do I Start?: Back in the Game

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Mike & Jessica discuss why spreads work, and why brokerages allow traders to place defined risk trades even in stocks they can't afford to hold 100 shares of.

They discuss the differences between defined risk and naked options, and how the trades are similar but different.

Don't forget the homework - watch A ROC Analysis: Defined & Undefined Risk

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