204 Commodity: Buying and Selling Your First Option|
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Commodity Course 204 Introduction
Welcome to the Virtual University of Investing's Commodity Course 204:
Buying and Selling Your First Option. In the previous courses you learned
primarily about trading contracts. All that you have learned so far serves as
the background information that you will need to understand the information
provided here in the course on options. Actually, the options course is so
powerful that we considered putting it in the 300 level courses. It is still
here, however, at the end of the 200 level courses and hopefully you will
recognize the truly magnificent power of trading options.
Buying options is so powerful for two main reasons:
Options have completely limited risk and unlimited
potential for gain.
Options are extremely leveraged (even more so than trading contracts).
With this said let me explain each of those statements to show you why
options are even better than trading contracts in many ways.