10 Tips to Manage Risk in a Volatile Options Market
Randy Frederick, April 14, 2009
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It's a mad, mad, mad, mad market out there.
The volatility and utter unpredictability of the equity markets -- and, by extension, the options market -- can frustrate even the best and brightest traders.
If there was ever a time to be cautious with your trading strategies and to exercise the highest level of risk management possible, this is it. Of course, the great thing about the options market is that you can still make money no matter what the conditions are if you play it smart.
The rewards are there, and in some cases higher than ever before. But with high potential reward comes high risk. That's why managing risk in a volatile market is a key component to coming out on the positive side of the ledger books at the end of the day, week, month and year.
So, how do you manage risk in a volatile options market? Here are 10 tips to help you do just that.
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