Stock Options

By professorredbag, July 19, 2013

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Since recently becoming a relatively active trader, I’ve had a plethora of promotional emails extolling the powerful profit potential of option plays. Today I did a little research on the subject and came across an article at http://25yearsofprogramming.com/blog/20070411.htm.
In one of no less than 13 seemingly sound reasons the author presents NOT to trade in options he says: ”Every time you read a newsletter, every time you see a TV show, every time you visit a website telling you the latest great way to make money in the options market, ask them in your mind:
”If this works so great, why aren’t you doing it?”
”If this works so great, why do you make your money writing this newsletter?”
”If this works so great, why are you in this awful late night infomercial?”
”If you’re such a great trader, why do you manage other people’s money but make your money from management fees?”-”
I have and do ask myself these questions. I’d like the community’s responses to the whole idea of options and hope to get an answer to these questions: Why and when are options available on a stock?

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3 Comments on " Stock Options"

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breuningd321
Member
0
breuningd321
July 20, 2013 7:47 pm

Options can be an important and very profitable part of cash/wealth accumulation. The best way to get comfortable with option trading is to first educate yourself on the process, risk etc. Checkout the reviews on this site – Options or Futures – in the Strategies and Sectors menu. Inexpensive, competent traders/advisors can be found.

Good Luck

daleto
Irregular
7
July 21, 2013 4:34 pm
Your skepticism is well warranted. There is no such thing as a sure thing in the options world. However, options provide a sweet playground to make your fastest gains; that is the sell. Though it has been my experience of trading options since 2003, I found that this playground is mostly the easiest way to lose your money. No amount of statistics and/or “gut feelings” can predict the wild market swings and the relentless time decay that are the options world. It can be done successfully and is done all the time, but I had one very steep and costly… Read more »
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