High-risk, high reward - that is an investment fact embraced by most people. They believe that any system that offers the opportunity for extraordinary profits must necessarily involve an inordinately high degree of risk.

Nothing could be further from the truth when it comes to intelligent options trading.

I am reminded of the legend of the blind men examining an elephant - each man touched a single part of the animal, and came to an entirely different conclusion as to what he was touching.

Viewed as single transactions, the following two statements are undeniably true:

1) Buying stock options is extremely risky.

Buying stock options may indeed be the risky kind of investment that scares most prudent investors. If we examined this one small part of stock market investing, we could understandably conclude that stock options investing involved high risk.

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