When Should Investors Buy Options?
One way investors can get themselves into trouble is by buying options -- namely, puts and calls, which give you the right to respectively sell or buy a specific stock at a set price in the future. There's a time and place for using instruments like these in the course of your investing, but it's important to know these boundaries.
In the latest episode of Industry Focus: Financials, analyst John Maxfield and host Gaby Lapera address this, sharing a few tangible pieces of advice for investors thinking about buying options.
A full transcript follows the video.
Source: Fool.com