SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Real Man who wrote (59236)8/2/2002 10:31:06 PM
From: J. P.  Read Replies (2) of 94695
 
Why would you choose options over futures as a leveraged and speculative investment vehicle? I see the usefulness of options only as a type of hedge or portfolio insurance against equities. Won't trade them for directional speculation. You can do all sorts of spreads etc. but you'll find no mathematical advantage. As long as there is a wide bid/ask gap in contracts the probabilities are always stacked against the retail buyer.

Some advantages of futures:

1) Bid/Ask spread is only 1/2 to 1 tick (6-12 dollars).
2) If you are right about direction you have an
immediate profit. With options you can be right about the
direction and still lose due to time decay and bid/ask spread.
3) No time decay in futures
4) You cannot really set stops with options, with futures you can set very tight stops.

there's more.....
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News