Options vs. Stocks: Which Is Right For You?

Author:

Anna-Louise Jackson

Qutoted:

Wade Guenther

Summary:

Options are a great hedging tool which was their original purpose

You can buy stocks, which represent shares of ownership in individual companies, or options, which let you bet on which direction you think a stock price is headed.

While there are important differences between stocks and options — and the type of investors who gravitate to each — these assets can complement one another in your portfolio.