Options can be powerful investing instruments to help generate income, manage risk, and trade volatility. Beginner strategies, such as buying and selling options, demonstrate how these securities provide dynamic alternatives to traditional investments. More advanced strategies offer unique and tactical ways to capitalize on trends in the market. This series of Viewpoints can help you find an options trading strategy that aligns with your market outlook, no matter your experience level.
Option trading entails significant risk and is not appropriate for all investors. Certain complex option strategies carry additional risk. Prior to trading options, you must receive from Fidelity Investments a copy of "," by clicking on the hyperlink, and call 800-FIDELITY to be approved for option trading. Supporting documentation for any claims, if appropriate, will be furnished upon request.
There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade.
Greeks are mathematical calculations used to determine the effect of various factors on options.
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