Options "40 In 4"

Discussion in 'Options' started by Samson77, Mar 18, 2004.

  1. Weasel

    Weasel

    Most of the stats they quote are useless. The options you end up buying are so far out of the money that there isn't much trading going on. The spreads are often very wide on index options to begin with. I had broken about even through the 1st 2 quarters of 2001. I happened to own puts on the s&p when the World Trade Center was taken out. My $1,500.00 investment was worth about $15k when the markets finally reopened. I sold them right away. What a mistake....if I had kept them until the end of the week for expiration (which was a wild one) I could have made another 50k. Back to the system....it sucks. You can't trade at the prices they claim to trade at all of the time. Sure, 1 contract might trade at a price to get you the 40% profit they tell you to look for, but that's it. Try to do any size and it's impossible because of the thieves in the OEX and SPX pits. BIG spreads kill you.
     
  2. =====================

    Samson77, interesting nickname;

    [1]Wouldnt want to minimize the difficultys in trading options;
    matter of fact i have shopped aroud for airline puts for years including last bear market and this bull market.

    [2]Even with 20/20 hindsight still cant find any to buy.:cool: ;
    prefer liquid underlying stock .

    [3]Whether one trades stocks & or stock options; or my favorites stock index options & liquid stocks , explore this 4 .

    [4]Four Biggest mistakes in Option Trading,
    by Jay Kaeppel:cool: