As an options trader, determining your risk appetite is part of the pre-trade decision making process. Therefore, it is important to know the methodology of different options strategies prior to their application. Whether your objective is to manage risk or enhance income, understanding the risk/reward of various strategies is a key component of options trading. Strategy determination, detailed examples and market scenarios for when to apply certain strategies all may potentially help improve the performance of your portfolio. Join us as we become immersed in scenario-based market situations and apply the applicable strategy used by options traders.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
The views expressed are as of the date indicated and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author, as applicable, and not necessarily those of Fidelity Investments. The experts are not employed by Fidelity but may receive compensation from Fidelity for their services.