Learning Options Trading Risk From The Greeks

If used correctly options trading can be a very lucrative investment solution. At the same time it can wash out your entire account pretty fast too.

See Idiot’s Guide To Option Trading.

Believe it or not, many of the most commonly used trading and analysis tools were created far before the current markets as we know were even created, such as the Fibonacci retracement.

In the options market, the Greeks define and quantify the risks of your position before you commit to the investment. Understanding the Greeks is a must for proper risk management. Further, the Greeks can also help you identify and select not only the proper strategy to fit the opportunity you selected, but also which specific options to use to create that specific strategy.

Ron Ianieri does a good job of covering this “Greek” idea in one of his seminars, DIW Ron Greeks. You can view this video as part of the free INO TV Account.