Option pyramiding - the dream of all speculators. How does it work? Well - until you go bust. Better have a safety net when it comes to option trading.

The safe options way

Any options trader should have a look at the above. There is only a small fraction of traders who exercise a reasonable money management. You may not believe it, but chances are that you are not among them. The option markets allure people to put money in a way too speculative way at work. The math is playing against most of them.

The option market is fascinating, because one can rake in huge gains with small commitments. In the long run trading stocks may be nonetheless the better choice. As already said, the numbers are playing easily against the option trader. If it is the quick money with huge leverage what you are seeking, daytrading Forex may be a fine alternative. Of course futures markets also allow a blood freezing leverage. Small stocks and their huge price moves can offer thrill without the freeze.