The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. Kirk here again at Option Alpha and welcome back to the daily call. Today, we’re going to be talking about the dangers of trading options. Now, for full disclosure and of course, I probably have to say this legally, it’s all over our website legally anyway, but of course, options trading is risky because it’s a leveraged asset and when you use leverage, leverage can hurt and leverage can help. I often relate this to actually driving a car because a car is leveraged, leveraged to get from one point to the other point faster, but if you use leverage in the wrong direction or too fast, too slow or incorrectly, it can be dangerous. If you drive a car backwards down the highway at 70 miles an hour, that’s not what it was intended to do and therefore, it can cause harm. It can be very, very risky versus just like for example, walking from point A to point B. But in options trading, the same concept proves and that is if you use it the right way, it can help you get from point A to point B much faster