Futures contracts offer leverage, which allows traders to control large positions with relatively small capital ¹. Here are some key points to consider ²:

- Options strategies are not get-rich-quick schemes.

- Most strategies used by options investors have limited risk but also limited profit potential.

- Transactions generally require less capital than equivalent stock transactions.

- They may return smaller dollar figures but a potentially greater percentage of the investment than equivalent stock transactions.

- Even investors who use options in speculative strategies such as writing uncovered calls don't usually realize dramatic returns.

- The potential profit is limited to the premium received for the contract.

- The potential loss is often unlimited.

- While leverage means the percentage returns can be significant, the amount of cash required is smaller than equivalent stock transactions.