facebookSeeking advice on the benefits/risks of using call option and risk reversal method to purchase stocks as opposed to the simple buy/sell order for stocks using trading apps? - Seedly

Anonymous

18 Apr 2019

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General Investing

Seeking advice on the benefits/risks of using call option and risk reversal method to purchase stocks as opposed to the simple buy/sell order for stocks using trading apps?

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Goh Kah Kiat

07 Jun 2018

Editor-in-chief at Risknreturns.com

Using options to invest / speculate in stock price movements has the benefit of losses being capped. However, upside tends to be capped too based on the options trade structure and the options themselves cost money (premiums) which can also make it harder to make money.

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Investing with just stocks is much simpler, with exposure to both the upside and downside, but require a larger capital base.

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