the truth about options ...

Discussion in 'Options' started by FeenixRizin, May 27, 2010.

  1. there are far more ways built in for you to lose than win...

    Unless you are a Jet fighter pilot, or have the most modest amount of patience, you will lose.

    My advice to all the options-millionaire want-to-bees, look for a few 20-1 odds a year, and be prepared to lose it all.
  2. a 20-1 bet would be: (my math might be off)

    buying contracts at .05, at 29 on Thursday and it closes
    at 31 on Friday

    probably, the only way the average Joe can make it in options
  3. Coolio


    You need an options education. Options are the only place that the newb and/or small timer stands a chance (and no it does not involve buying far OTM strikes for .05)
  4. masonyes


    Well I just started and so far I'm in the positive however I only have a few positions and I use options as leverage to purchase stocks and to increase the income of the stocks I own. I write out of the money covered calls of a stock I purchased and I have bought a few LEAPS. I don't speculate and I don't engage in short-term investing. That's my humble opinion and good luck to anyone who tries it.
  5. mynd66


    You traded options and either you blew up your account or lost a lot... mind sharing?
  6. rew


    You won't consistently make money in options unless you have an edge. You won't consistently make money in trading stocks unless you have an edge. After all, the guy on the other side of the trade probably isn't any stupider than you are. Hell, given the performance of the stock market in the past decade you won't make money buying and holding unless you have an edge. So options aren't special in that respect.

    If you don't have an edge, buy some safe bonds and be happy with your 3 - 5%.
  7. I agree with the other post, selling out of the money calls for your stock holdings is a great way to trade options and generate monthly gains for the portfolio.

    And it only requires the most basic options level clearance, so it's possible even with an IRA.

  8. i started actively trading in options ... bad move

    made a few of those mythical 1500% returns... and lost 100% on more then enough trades to surpass them

    my only point is this. If you are not hedging, or a trained professional, the only way to make money, overtime, using options, is by only swinging for he fences

    (and yes, I must admit, I attended a conference about 10 years ago, which was so convincing. Funny thing is, I'm not at all greedy. Lord knows how much money is ripe for the picking from the greedy)
  9. rosy2


    i think options are safer than just buying the outrights. it depends on how you trade them though

  10. agreed. options allow you to decide exactly how much you're willing to lose.

    altough, so do stocks, provided you don't hold overnight
    #10     Jun 3, 2010