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Anyone not using options to hedge a position shoud STAY AWAY FROM THEM! Buying and selling options (most especially naked calls) is the riskiest thing anyone can do (aside from shorting an internet company). Per a trader/trainer at the CBOE, even the BEST option traders in the world only make 40% annualized return. The Rule Breaker portfolio has already doubled that, and that's extrememly conservative considering the risk with options.
Take it from someone who's lost his shirt 2X in a row, it never pays off. I made my quick 400% gains in a day with options (ONSL for one made me very happy last year) but then lost it all, and then some, when I put it all into puts on AOL and some jackass gave it a $400 price target.
Honestly, unless you're betting the farm (and can afford to lose it) do NOT trade options. Buy puts to hedge a stock you're bearish on (or just sell the stock), or calls with the anticipation of excercising them. Otherwise - STAY AWAY!

-a Fool who knows what he's talking about, because he's BEEN THERE.

Remember - "A gambler loses not only what he has, but what he does not have."

Options, my friend, is gambling like the CBOE doesn't want you to know...
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