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Options provide very attractive ways to make money very quickly. However, there is a reason that even the best options traders say "10 up, 2 down" is the motto. This means that if you trade options all 12 months of the year, you will only have 2 months in which you are positive on your trades. However, those two months should be so good that they eat the rest of your losses.

Naked options trades are only good for those with expendable income and a tight stomach. Otherwise, options are better used as hedges on trades made in the primary securities market.

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14y ago

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