Options better for newbs?

If you are prepared to do the necessary homework first, there are reasonable option positions anyone can take (IMHO) and learn from OJT. Few take enough time and focus to do sufficent preparatory homework.

If one is not going to do the necessary homework first, there is never a time I would reccomend trading options... neither first, second, or last is a good idea.

Peace and gtty,

Lar

 

As my grandpa would say. "Son you can't put the cart in front of the horse..."

 

Options are a great place to start; it forces you to think w/o spending a whole lot of money. If your learning curve is steep enough, personal finance and contingency claims become the same.

 

with option you can still lose even if you bet on stock direction was right.

 

Good point. The flip side of that is: You don't always have to be right market direction in order to win.

 

ah! but to reach that stage he's not a newb any more.

 

Not necessarily m'friend. For example, it does not take a brainiac to trade ntm credit/debit spreads. Vertical spreads are fairly straight forward. Under those conditions one can make money by not being too wrong... not necessarily being right.

There are others, as I'm sure you are aware.

Just a thot.

fwiw.

Peace and gtty,

Lar

 

Buying options, debit spreads i guess are ok, so long as the newb knows it's practically all or nothing.

Selling naked and net credit spreads... well, that's another story.

What I think matters most is position size.