I've said it before, and I'll say it again. Unless you're hedging a long or short position in a stock, playing options is nothing more than a wager. Your odds are probably better tossing your capital on a craps table in Las Vegas. If playing options were as simple as many people make it out to be, then we'd all be millionaires and no one could possibly lose money in the markets. But that ain't the way it is...
On the positive side, he took his losses using options, so that limits his losses to whatever he paid for the option. In theory anyway, he could have gone long or short the stock, and lost that home equity he mentioned right from the get go...
EK!!! |
