Friday, April 22, 2011

OPTIONS TRADING

I've been giving some thought to options trading lately.  While I've always avoided the idea as too risky, I read something recently that has changed my mind.  In the article I was reading it was talking about selling options and taking the immediate cash payments to your account.  While it also warned about the risks involved, the article pointed out that as long as you were willing to own 100 shares of a great company at a specific price, it would be more like naming your own price on your stock purchases.  So I can see how there would be a place in my investment strategy for selling stock options.  Although I would definitely limit my exposure, I think I'll give it a try.  At worst I'll pick up some shares of a good dividend stock at a discount to current market prices.

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