The story of stock market is one of booms and busts.There's only one way of making money in the markets, buying low and selling high.

The order in which you do them places you firmly in a particular direction and this is where your risk compounds.

The best way to manage risk is to simply be neutral in the market, in other words, not be committed to either direction.

How is this possible, you ask? Well, this is where options come in.

Options are a derivative which you can use to simply automate your risk management and, in some cases, completely eliminating the risk altogether.