Thanks for your response, Vicki. My knowledge of investing/trading (I'm more of a trader) is extremely limited and I learn quite a bit from every one of your posts.
Can you clear up one particular question I've got right now?
The terminology is probably wrong, but here goes. If I expect GTIS to exceed $10 by the beginning of July, and buy options to that effect (I'm assuming we're talking calls with a $10 strike price and a July 1 expiration), the most I can possibly lose is every cent of my premium, right?
It's sounding like if I *buy* options, I only risk the premium, but if I *sell* them (which I'd never do -- not yet anyway), I'm betting an unknown amount.
Seeing the commercials, it appears that if you buy options, you could lose every cent of the premium on the downside, but if the value of the stock goes well above your strike price before the expiration date, you could end up with a LOT of money. Much like buying a lot of lottery tickets. Are the odds anywhere near as bad as with the lottery?
Keep in mind, Vicki, I invest more for fun than for a serious intent to make money. Therefore, I'm very aggressive. If I lose every cent of a premium, no less food will be on the table, and I won't lose any sleep. The money I use for playing the market is "extra" money, above and beyond savings, retirement, etc. |
