Option vs. Single Stock futures...

Discussion in 'Options' started by mizhael, Feb 6, 2009.

  1. Let's say you start with same amount of initial fund. And you look at a stock. One choice is to trade option. Another is to trade single stock futures on that stock. Assuming both have good spreads and good liquidity. Which asset should you trade in order to maximize your speed of doubling or rate of return, assuming you spend same amount of intellectual energy?

    More generally, I just want to ask the speed of return in terms of trading different types of assets, esp. Index Futures, vs. Index Options vs. Options on Futures vs. FX vs. Options on FX, etc.
     
  2. This question does not make sense.

    To earn the most money most quickly, you need maximum leverage. Rest assured, that's also the path to losing all your capital as quickly as possible.

    Mark
     
  3. Yep, I am also implicitly comparing the maximal leverage that's possible for each type of trade. That's why I made them both starting from the same initial fund. It's just for comparison.