10 Busted Myths of Options Trading
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Myth #2: You should only trade options in a tax-deferred account.
We're not sure how this myth got started, but it is absolutely not true. According to George Ruhana, many investors are using options in their taxable accounts to help them make big returns precisely for their retirement planning.
"You've got this huge baby-boomer generation that's got a lot of net worth to invest, and they also have some time on their hands if they're retired, to do so. So people are really involved in [options trading] and they spend a lot of time on it. Trust me, when I talk to customers, they are laser focused on returns and how they're trading and new ways to do things."
George added that many investors are now taking 5% or 10% of their total portfolio and actively trading it in options using both long and short strategies, and by buying and selling puts and calls.
Trade options only in tax-deferred accounts? Myth busted!
Learn more about Opening Your Options Trading Account.
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