10 Busted Myths of Options Trading

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Myth #9: Trading options is a function of greed, and shows a lack of control by the individual inves

Rather than a function of greed or a lack of control on behalf of individual investors, trading options represents a very controlled and very rational method of adding value to an investment portfolio.

As George Ruhana told us, "They [individual investors] are going to be more personally involved in their financial decisions and their financial future. They're not just going to outsource it to someone with a blank check because a lot of those people got hurt just as bad as an individual investor."

Tom Sosnoff says, "Well I think [the 2008-2009 market decline] has given individual investors even more reason to be focused on their ability to trade. These are people that are managing their own capital. They're not complaining that somebody else lost their money for them. They're into it."

Rather than simply relying on someone else to manage their money, individual investors who trade options use them to protect principal, earn income and, more importantly, increase control over their own money.

Greed and a lack of control? Myth busted.

Next: Options trading is a fad.