The Millionaire Blog

Options - Risk Management
There are more kinds of risk than there are investments, since every instrument carries several kinds. But risk isn’t inherently bad. Without it there’d be fewer opportunities for profit.
The fundamental risk, of course, is price uncertainty. No one knows for sure whether GOOG (the symbol for Google stock) will be higher tomorrow […]

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Options - Hedging, Trim Risks Not Bushes
Options are frequently used in hedging.
A hedge is an investment made to offset the risk incurred by entering another investment. Ironically, the basic idea is to bet against oneself, in a way.
Speculate that the market price will rise in the future and buy a call today. (A call is […]

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