If you want to learn about stock options, strategy and risk management will be two of your most important lessons. In the article “Top 5 Things To Know Before Trading Stock Options” from Option Boost, you can learn the basic things you should know before making an investment.
One important thing to understand when assessing your risk is that stock options are inherently volatile. With the right strategy, you can learn how to get the implied volatility of stock options to work for you rather than against you. One of the ways you can do this is by hedging. Hedging is a way to protect your investment by structuring your portfolio so that you take a portion of both sides.