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Options Strategies to Make Money 133Review
Options are yet another way to make money on Wall Street. Options differ
from stocks and futures in a number of important ways. Before trading op-
tions, learn the terms and logic behind options. The information presented
in this chapter is merely a brief introduction to the world of options. Before
risking money, understand how options work and all of the risk associated
with them.
Once you have a grasp of options, they may be used effectively to
achieve several important financial goals. They may be used to hedge your
portfolio, to probe the market or to speculate, or they may be used for
portfolio protection or crash avoidance. Furthermore, covered calls may
be used for additional income generation.