Watch representatives from Fidelity’s Trading Strategy Desk as they review how options traders can make decisions on choosing a strategy that best fits into their specific outlook. They discuss the benefits and drawbacks of using various strategy types and when a trader might choose between a single leg strategy versus a multi leg strategy. During this session they cover: · How to analyze options strategies in Active Trader Pro · Risk and reward characteristics of both single and multi-leg options strategies · Important option pricing components to consider · Common mistakes traders make when choosing between options strategies
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade.
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