Streaming Quotes Are English Yes   Sponsored by:  Myths About
Options – Take 1   Options may have more myths about them than
any subject related to investing and trading. These myths
persist despite the industry's existence in the U.S. for 40
years. This is the first in a series of articles that address
several myths about options and try to set the record straight.
Myth #1: Options are only for speculators.  Perhaps you have
heard something like this, "When I invest, I buy stock. When I
speculate, I buy options." This thinking misses the concept that
options are insurance-like instruments. Insurance is purchased
when the goal is to limit risk, and insurance is sold when the
goal is to increase income. Every strategy has a risk, of
course, and one risk of buying insurance is that the premium
paid is lost. The risk of selling insurance is that someone may
come to collect.  Limiting the risk of market exposure is an
investment activity, not speculation. Put options can be
purchased to protect a stock position