Stocks and Options: Balancing Risk and Reward for Beginner Investors

Options offer potential for big gains through leverage but also heighten risk of significant losses; require market knowledge.

Stocks provide ownership stake, steady long-term growth, lower risk than options, and dividends.

Options demand close timing with expiration dates; diverse strategies like covered calls.

Beginners may want to start with stocks to learn before higher-risk options trading.

Balanced portfolio can combine both stocks and options to balance risk versus reward.