Most beginners use options in really, really risky ways! And nothing makes us more upset than all the ‘get-rich-quick’ schemes out there on the Internet.

Options are levered instruments. Meaning that you can easily trade more money than you have. Visit the legal section of this website to familiarize yourself with the disclosure of risks when trading options.

Make sure to keep yourself out of trouble. Understand the risks and avoid fantastical claims littered across the internet from autotrade and newsletter services.

Now that irresponsible trading is out of the way, it is important to note that options can be used in ways that are far less risky than stock investing or mutual fund investing.

Our belief is that risk management should primarily be handled at trade entry.  This can be achieved by never trading too large and having an exit plan. This is where a small amount of education comes into play.  The temptation to trade too large is most strong when you don’t have enough trades to put on – OptionAutomator’s Brutus Options Ranker solves this problem.