Play with options

Buy for less, Sell for more,

That’s how you make a profit on the exchanges, dearie.

But there are unknown forces in the market,

And when we give ourselves wholly to them, without reserve,

We may just as well get spited in return.

Stocks, like ice, our footing does betray,

Who can tread sure on the smooth, slippery way,

But with Options, we glide swiftly on – if only we know how to play with them.

Buy a call option at a strike price,

And one earns the right, but not the burden of obligation, to buy at the strike price,

If one buys a put option, it’s not too different in its form - you see,

One earns the right, but not the burden of obligation, to sell at the strike price.

They are those who come to play betting big directly on stocks,

But I, being poor in capital, have got only my options to play with,

So, I have spread my options net under the market’s feet, and am hoping my hedges do not go amiss,

Collars, Straddles, Strangles, Condors, and Butterflies are names of some of my options strategies,

When I am in-the-money, they rake in the moolah; but if out-of-the money, I will be cooked for sure.