These strategies are useful for different situations and include Straddles, Butterflies, Call Spreads, Put Spreads and many others. Finally Although that seems a lot, it really is only a brief summary. Options especially involve far more than is described above and this article is meant only as a base for further study. While both offer an exciting and useful dimension to the markets, both can be a painful way to lose a lot of money if not understood and respected. This is not investment advice and please remember that the contributors may or may not hold shares in some of the companies discussed.
Shares can go down as well as up and can sometimes collapse completely.
Before investing anything always do your own research and seek the advices of a registered Financial Adviser.