The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “Are options more profitable than stocks?” The answer to this question is of course, 100% yes. Options trading is more profitable than stock trading if and only if you know how to manage the risk that’s associated with options trading. Where most people completely fail in options trading is that they don’t understand or they don’t know how to manage the risk associated with a leveraged contract like an option contract. Remember, options contracts are leveraged derivatives on the underlying shares of stock. That means that they might seem very cheap and very small in price, but the leverage that they carry means that they have a massive amount of risk if you do not position size and spread your account out appropriately. And this is what we try to do here at Option Alpha, is make sure that people understand the risk that are associated with options trading, not just all the upsid