learn the stock market

At the same time, had the price fallen below $1, say to $0. 80 cents, then you would not exercise your right to buy the shares and you would walk away, losing only your $400. You have the option to buy the shares, not the obligation. But, if you had bought the shares, you would have lost $2, 000, or 20 % of your original capital.

Options can act as a risk management tool. That is, you can limit your losses, whilst still taking advantage of the share price increases.

One of the major advantages over purchasing shares outright, is that with options, you can also buy the right to sell, in case the share price falls. Therefore, you can profit from the market if it is rising or falling in value!

Options are a little more complicated than shares to understand, but with a little practice, you will discover that options are a fantastic financial instrument. With options you can “insure” your share portfolio, generate a monthly income and return 100 % and more on trades. You just have to know how. The Platinum Pursuits report will feature many articles on options and we welcome you to attend our monthly seminars, where we will teach you how to profit with options.