Trading Mutual Funds

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Options trading is a risky business and is not suitable for average investors. Options are generally appropriate for sophisticated investors only and should be dealth with extreme caution.

Most strategies that options investors use have limited risk but also limited profit potential. For this reason, options strategies are not get-rich-quick schemes. Transactions generally require less capital than equivalent stock transactions, and therefore return smaller dollar figures - but a potentially greater percentage of the investment - than equivalent stock transactions.

Even those investors who use options in speculative strategies, such as writing uncovered calls, don't usually realize dramatic returns. The potential profit is ...