Posted on 02/02/2019 2:57:08 PM PST by Vision
Have a few questions and my head is spinning.
Thousands of them.
Thousands of them.
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LOL.......
Weighing them and the back and forth can get to you.
Great way to lose a ton of money super fast..!
Say goodbye to your wallet..!
Have a few questions and my head is spinning.
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Why don’t you post say five or so of your questions....
Give people a starting point.
Take your forehead off the baseball bat and stop running around in a circle.........Sheesh!
Do covered calls only.
Options? Hmm.
When in doubt go with old reliable. A Federal Gold Medal .308 Win 168 Grain Sierra Match King Boat Tail Hollowpoint does the job out to a thousand yards.
There may be better choices but its a good general option.
DONT DO IT....
Look up EFFICIENT MARKET HYPOTHESIS.
It will save you a LOT of money.
“Do covered calls only.”
I wouldn’t, unless you are willing to write puts, since the payoff is the same.
Should I be getting in and out of trades via options to pick up a few basis points?
I'm half guessing here. Instead of buying a stock, I'll sell a put in the money. That way I think it immediately gets filled and I get a few extra points.
On selling, I sell a call in the money and it executes immediately and a few points are picked up.
Is this concept right? What am I missing?
Yes, writing a put is basically like getting paid to have a buy limit order on a stock. On your call question, I think you mean when you buy a stock and write a call at the same time, you could be hoping that someone exercises immediately to lock in a profit, but they may not until closer to expiration because they can sell with a time premium until it gets close to expiration.
The buyer of the call will likely hold because he makes money on it if the stock keeps going up, and get the time premium when he’s ready to sell, instead of exercising.
Unless you have years of experience in the industry don’t do it unless it is just play money you want to lose. Even most professionals lose money over time.
I’ve been away from the markets way too many years to even
begin to give you any buying advice.
If you live near a couple of brokerage locations go in and
talk to the people and sit and watch what the markets are
doing. Good luck.
The only people who consistently make money on them are the hucksters who use TV, blogs, vlogs, and newsletters to bring in more rubes all the time as the earlier victims lose everything. Yeah, I want to get involved in that, really soon. As if I'm not good enough at losing money as it is...
Read chapter 4 of “Trade like Chuck”
ABC is trading at $100.50 and trending upward. Instead of buying it via a stock trade I sell an in the money put for $100 (for $3), which automatically executes and my basis is $97.5. Six months from now I want to sell the stock at $110. I sell an in the money call (for $2) and automatically gain two extra points.
If you want to learn to trade options go towww.tastytrade.com. they will teach you through there video library and live show how to properly trade options... trade small trade often. And may the odds be ever in your favor
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