Stocks vs Options

Discussion in 'Trading' started by Lloyd W. Coutee, Oct 15, 2015.

  1. gkishot

    gkishot

    Wrong :D ...
    -- if you know what you're doing.
     
    #11     Oct 15, 2015
  2. Handle123

    Handle123

    Lack of education is the riskiest, neither has more advantage or disadvantage as much has to do with personality, how you handle risk and how much you like to be able to risk, being under capitalized won't take long for 99% to lose it. Stocks geared usually for long term duration and once you buy a dividend stock, you can make money for years and don't care where the stock goes, you can own the stock and play options around the stock by doing covered calls and credit spreads. Can't keep an option forever and why they are cheaper than the underlying, they are like renting a gorilla-can be running at you like a mad gorilla or running away after better catch, some have unlimited profits on paper but not always in reality, and there is a solid 66% better chance of making profits selling them than buying with a little bit of back testing. But still comes down to education, you can lose money betting on red/black.
     
    #12     Oct 15, 2015
    Lloyd W. Coutee likes this.
  3. prc117f

    prc117f

    Options for me are very good. I only work the SPY ETF options market. For me its about providing better returns with less volatility.
     
    #13     Oct 15, 2015
  4. Options are far more profitable and safer than stocks. As your leverage grows, you can trade a significant smaller amount of money and still get the same profits as trading stocks with a higher amount of funds. Good luck!
     
    #14     Oct 16, 2015
  5. Seems a lot of people here thinks that options are more profitable and safer than stocks. Surprisingly.
     
    #15     Oct 16, 2015
    gkishot likes this.
  6. rmorse

    rmorse Sponsor

    I'm not sure why you have to choose one or the other. Choose the one that fits that trade idea.
     
    #16     Oct 16, 2015


  7. Options are a lot more riskier than stocks, no exceptions. Can you post an option position that is less riskier - "more safe" - than a stock position?




    :)
     
    #17     Oct 16, 2015

  8.  
    #18     Oct 16, 2015
  9. rmorse

    rmorse Sponsor

    Long 10 ITM calls vs long 1000 shares of stock
    Long 10 ITM puts vs short 1000 shares of stock

    That's 2, there are many more.
     
    #19     Oct 16, 2015




  10. I don't see how the options are less risky than the stock position. I wouldn't mind seeing an example with real quotes.





    :)
     
    #20     Oct 16, 2015