The option “greeks” are rather simple to understand yet few option traders ever take the time to learn them. This is where options get such a bad name. People confuse their own ignorance to study with a perception that options are speculative and dangerous trading vehicles. If one understands the product they will realize if used correctly options are a fantastic tool to manage risk and allow one to either speculate or earn regular income.

The key though is understanding how they work and most importantly how they are priced. Unlike a stock price you cannot simply look at an