Triffin, RE: options
May I also add, although I sometime forget this myself
that some 90 percent of ALL options expire worthless..
Options ADD a second paramater to a already difficult problem,
you ADD time in addition to DIRECTION.. Which SQUAREs the the problem
both of course which adds Leverage.. ALSO, HOW DO YOU CUT LOSSES..OPTIONs are SEDUCTIVE, they lead you on, your investment SLIPS
AWAY, you wonder what should I do?? Tomorrow,..Tomorrow but Tomorrow
NEVER comes. It's the third Friday.. and most of the time.. ALL you
have is the SLIP.... Nothing.. Nada..
IMO only, you buy Options in the last half HOUR of Fridays because
they STRIP PREMIUM, IE. make them cheaper.. YOU SELL THEM or WRITE
THEM early in the week..
If you have a stock that is optional, and do not care if it called away, Sell or write an CALL option on it, out of the money, to make a profit or a price that is acceptable to you if it is called away. If not, the option decays to nothing and you keep what you sold the option for.... COVERED OPTIONS.. they are called... BUY a stock, sell a CALL option.. REDUCES your price. sort of speak.. If The stock goes up and you want to KEEP the STOCK, you have buy the option back at a HIGHER PRICE.. A LOSS then occurs.
EDIT: PUT OPTIONS are the other side,,Buy'em when you think the
equity or index is going down.. or Vice versa.. Also there are so many ways, I will not waste any more bandwidth..
Here I go Again...... the Coug .. Good luck all and learn.. |
