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Showing posts from July, 2020

🟡 MYTH vs FACT

1. Option Selling is Easy Profit : Actually options are not trading instrument, they are created for hedging purpose. Option buyers mostly lose money if they hold it for longer time period. So, now a days, many new comers started selling options without considering the risk. Options writing/selling is not guaranteed profit making way, the GURU of options sellers world, who introduced this writing strategies to the whole world, James Cordier, blown up his fund after 14 years of option writing experience. Check this link https://www.youtube.com/watch?v=VNYNMM0hXXY  2. It is like an Insurance Business : A big NO! An Insurance doesn't guarantee you unlimited coverage, whereas a short position in option is coming with unlimited upside risk. It happens once or twice in a year but it comes with probability of unlimited loss, GUARANTEED. 3. Futures Trading also having Unlimited Risk : Futures trading comes with unlimited profit potential too! You can use Options to hedge your futures pos