Cant really see the advantage of E-Minis versus Stock Options or Stock Index Options

Discussion in 'Index Futures' started by abenyukh, Feb 27, 2003.

  1. No offense man, but with your level of knowledge, I'd worry more about capital LOSSES.

    Of course, if you feel like gambling and buy all the puts/calls your account allows and get lucky, well that is NOT trading. One can pretty much accomplish the same in Vegas.

    Also, if you go the option route, stick to 1-2 options at a time. This way at least you can learn something from your tuition. With futures your "tuition" will disappear very fast and you won't have a chance to learn anything.

    I actually do not like options. Would always prefer futures because of the lower overall trading costs. But as tuition for a newbie I would not use futures.
     
    #11     Feb 27, 2003
  2. abenyukh,

    The difference between trading stock or index options and eminis is like the difference between being a truck driver and flying a stealth bomber. You could argue they are basically the same, but there are also various differences.

    I would say for your level of experience options are better than eminis, as long as you keep the following 2 things in mind:

    1. Don't short options. (That means, never sell an option before you buy it; Only sell options that you have previously bought.)

    2. Understand that unless you get extraordinarily lucky, you WILL lose 100% of your capital.
     
    #12     Feb 27, 2003
  3. Please reference the post regarding "Delta".
     
    #13     Feb 28, 2003