They say, I say 2

            Options trading is pretty similar to trading stocks, but it has a few major differences that can be positive or negative, depending on the situation. Many stock traders choose not to buy options because they can lead to big losses very quickly, which are unlikely when just trading stocks. They also worry that the prices will go the way they bet against and it will not change its course in the allotted time. Many stock traders are probably misinformed about options, thinking that they need a lot of money to options trading.

            Jeremy Whaley, the author of my article thinks that options trading allows for a much higher return on investment than stock trading would. He compared a scenario with apple stocks where stock trading gave a 6.8% return on investment while options trading gave a 92% return on investment. This really illustrates how options trading can give a much high return on your investment and can lead to you making much more money than you could if you were just trading stocks and not options. Another thing that he mentions in the article is that options trading is less expensive than stock trading and allows people with lower funds to invest in bigger companies such as apple or google. This shows how options trading isn’t only for rich people and how it is actually much cheaper than stocks. In the article he also mentions that while they can have a higher return on investment it is also much easier to lose all of your money very quickly when options trading. After he explains how it is much easier to lose all of the money you invest in one company, he insists that because of this fact it is a much better idea to use only 5% of your total assets as to avoid a huge loss that would be hard to come back from.

            While some fears of stock traders about the options market are true, most of them are false and lead to less people investing in options. There are many reasons why options trading is better than stock trading and some of those reasons are that it can give you a lot higher return on investment than stock trading can. It also reduces the amount of money you lose if you follow the 5% rule and don’t overextend into a single company. The last reason is that it just gives you more options to choose from and the more options the better choices you can make. In conclusion I believe that options trading is safer safe than stock trading because it can give a higher return on investment and it reduces overall risk to your total assets.