Why Valuation Matters in Options Investing

Investing using options is very different from constructing a classic long-term buy-and-hold portfolio. In this segment from Motley Fool Live that first aired June 7, Motley Fool Canada analyst Jim Gillies and Fool.com editor/analyst Ellen Bowman discuss why valuation is so important when investing with options. Ellen Bowman: It goes back to what I was saying about wanting to layer these strategies on top of companies that I already know and understand.