Comment on Option buying: The riskiest trade out there

fahad commented on 03 Jul 2021, 07:52 PM

Option buying is a contract which gives the right to the buyer of the option to either sell or buy stocks. The risk is limited to the PREMIUM of the Option paid. so the risk is limited to the price of the premium and reward is unlimited. Nitin please explain when you say that the risk is equal to the size of the leveraged position. we don’t quite get that logic of yours.

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