Selling covered calls = safe, downside limited
Selling naked calls = unlimited loss potential
Buying Puts, Calls = safe, downside limited
Selling puts =
unlimited loss potential
Sorry - have to disagree with you on that one. When evaluating whether to get into these vehicles (futures, options, leveraged ETFs), it's always good to see the worst that can happen. A good story to peruse the the
optionsellers saga. On levered items, the
TVIX debacle.
Totally IMO, but I believe that just buying and selling stocks is hard enough. Adding a time component makes options so incredibly difficult that I highly doubt most amateurs come out ahead. Options are a zero sum game - there is a winner and a loser. At least in the markets if you just buy and forget you have a ~70% chance that it'll rise over time.