What are the key strategies and risks associated with options trading, and how can beginners effectively manage their investments in this market?
When starting with options trading, beginners should focus on strategies like long calls, long puts, and covered calls, which balance risk and reward effectively. A long call offers potential profit when the stock price rises, while a long put provides downside protection. The covered call strategy can enhance returns in flat markets. However, risks like volatility and market movements can impact these strategies. Utilizing AI-driven stock market predictions can help beginners make informed decisions, optimizing their approach and reducing uncertainty.