cheap option

Discussion in 'Options' started by lesslaw2000, Mar 8, 2009.

  1. I am a beginner although I have made a few trades. I know the basics. Made a buck or two but nothing substantial.
    Anyway I will have a small amount to invest in an option and I am hoping someone can give me some advice and maybe recommend one. I am not looking to make a killing, just to make a small profit. I would rather invest it and take a chance rather than let it sit in a bank. It is a small amount anyway. $500 the end this month and then $2000 the end of next month. That would be for a 20 day option. I need to be able to get to the money if need be. I am laid off and I know this has risk but I understand that. Just looking for a little help from you option guys, when you have the time. I would appreciate your help when you finish laughing.

  2. I'm not laughing. You are out of work and want to gamble? Yikes.

    But think about what you are doing. You are asking anonymous people in an online forum to tell you what bet to place!

    Why would you trust anyone's guess? What do you know of that person's track record for predicting stock market movement?

    Why do you want to adopt a strategy that makes it so difficult to win?

    You can do a lot better than buying options. And if you are going to have $1,500 more next month than this month, that's a significant amount of cask when you have no income. Perhaps you ought to consider saving it for living expenses. Especially when you admit that you are a rookie and know little about options.

  3. yes I understand but this is my money that I have stashed. I am stable for the next three months. I am comfortable taking the risk. It could be a good thing or maybe not. No matter, it is better than not trying. I will not be disappointed this way, if I loose it. Can you give me any recommendations. I will understand if you refuse.

  4. I don't refuse. I just have no idea as to whether the next market move is higher or lower. No idea whatsoever. I never bet on markt direction.

    Thus, I can not recommend anything for you.

  5. spindr0


    Do yourself a favor concentrate on finding another job. Take part of the $500 you're willing to lose and invest it in some good option texts and spend your free time learning everything that you can about stocks and options. Consider it retraining.

    If you need a thrill or a quick hit, go to the track. If you're serious about making money in the markets, do the work first.

    best of luck to ya!
  6. R U a buyer of seller of options? The capital your mention is not appropriate for what you seek to achieve.

    Any human who would laugh at your situation ought to check whether he is still a human.

    A route I would suggest for you is rather to invest that money is a business that needs less capital, has less risk, and will use your time to develop it.

    A business that is good for this is internet marketing. A reader of a trading blog of mine told me about it. She developed a stream of income from it (a small one but growing).

    You may want to consider that direction. From what I understand it only requires less than a $20 a month to run, and if you do not make enough at least you would risk little.

    Once you have that income, you would be better to decide what is best for you .

    If you need a link on where to start, I can share it with you. I have to check my emails to locate it.

    Hope your situation will be better.
  7. Don't bet on stocks . FCX may be. Buy couple of options on
    GOLD and OIL . GDX gold and USO oil .