New option trader

Discussion in 'Options' started by Ben74, Oct 16, 2008.

  1. Ben74


    Just a newbie loaded with trades and want to see if I can play with the big boys.
  2. MTE


    No, you cannot!:D
  3. Roy


    You may want to start slowly and carefully, especially in this wild market.

    The volatility is highly elevated and the options contracts you buy are very inflated in price and will likely lose much of their premium when and if the markets ever normalize. It's a very dangerous time to be new to options trading.
  4. Wow good luck
  5. 'Loaded' with trades?

    Questions (I'm trying to help, not belittle you):

    Are you ready to trade?

    Are you using options as an investing tool, or as a gambling tool?

    Are any of your trades hedged?

    Do you recognize that all option prices are currently very high (deservedly so) by historical standards?

    Good luck
  6. Papertrade until you have a system. Doesn't sound like yours is defined yet. Trading off-the-hip is a wild ride to going broke. You don't have to heed advise, you can watch your money disappear. Either way is fine. Thanks for the liquidity.
  7. cash secured put writing and covered call writing.

    Like printing dollars.

    Repeat the mantra :)

  8. Agreed. It has been a great time for options writing. I wrote some contracts today that lost 34% of its value to the buyer near the end of the day.
  9. Only if you started after the huge decline.

    Otherwise it's like writing blank checks.

    These strategies are fine in their place, and I have no idea if Ben's comfort zone would tolerate those plays. Mine won't.

    Ben sound's like a premium buyer to me.