Let's Say It Together: Options Are Not Risky

When I told my mother that I'd be producing a new show on options, her first reaction was surprise.

"Options? They're so risky."

And then it hit me. Most people - even my own beloved mother, who watches CNBC everyday and can talk P/E multiples with the best of them - are afraid of options. That fear, I suspect, stems from a lack of understanding. After all, how could options be riskier than stocks? They cost less than equities, and used properly can be great tools for protecting profits.

The big hurdle for beginning option investors: the terminology. Delta, Gamma, Theta, Volskew. It's like Captain Kirk went to Greece. But if you can get past the language, you will be on your way to making smarter investment decisions.

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Since we launched "Options Action" in January, our goal has been to use the news of the day to explain how options can be great tools to risk less to possibly make more, all while increasing your odds of success. So this Friday, we debunk the biggest myths about options so that you, the viewer, can try to harness the power of these great tools and become a smarter investor.

Questions, comments send them to us at: optionsaction@cnbc.com

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Host Bio

  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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