Trading stocks vs options. Which would you choose?

Discussion in 'Stocks' started by nwoptions, Aug 15, 2020.

  1. ironchef

    ironchef

    Why?

    For me directional is easier, less parameters to consider/calculate.
     
    #21     Aug 18, 2020
    nwoptions likes this.
  2. ironchef

    ironchef

    We love convexity and early birds do get the worms. :D
     
    #22     Aug 18, 2020
  3. taowave

    taowave

    Direction in its purest form is "simpler",not easier..Big difference..

    If you choose to trade options as opposed to the underlying directionally,and you are bullish,
    is your go to trade selling puts and what strike,are you a call buyer and what strike,or a spreader...

    And why..










     
    #23     Aug 18, 2020
  4. ironchef

    ironchef

    Mainly bullish bets since 2013. Depends on how bullish I think the underlying would behave in the time frame I trade. No spreads.
     
    #24     Aug 18, 2020
  5. taowave

    taowave

    What Delta do you typically trade?
     
    #25     Aug 18, 2020
  6. %%
    Exactly; stocks/etfs , some pay dividends also...………………………………………………………………………..
     
    #26     Aug 19, 2020
  7. TIM1234

    TIM1234

    If I were you I would choose futures the benefits and risks would be greater
     
    #27     Aug 19, 2020
  8. manic

    manic

    If we are talking about trading, I would go with options. I like selling put options. I have a lot of room for error and am assigned a stock only at a price I am willing to pay (but usually I'll roll my put before getting assigned-- options give so much flexibility!)

    Now, when it comes to investing, stocks and options are both good. Lately, I have been buying long term call options on indexes as my main investments. I could do the same with stocks/ETFs, but the call options lower my risk substantially. This allows me to acquire leverage without the risk of a margin call.

    So if we are talking about trading, I recommend options. If we are talking about investing, it's closer but I still give the edge to options, unless you are looking for a completely passive approach. It's also worth noting that you can create a synthetic stock position with options, so options have you covered if you want to just trade stocks!
     
    #28     Aug 21, 2020
  9. Bekim

    Bekim

    Options all day long
     
    #29     Aug 22, 2020
    murray t turtle likes this.
  10. %%
    Like Don Bright Daytrading founder noted [+ he was an option market maker]
    options are made to be sold...…………………………………………………………………….IBD newspaper still puts a put call ratio under S&P 500 chart--if you like rube Goldberg stuff
     
    #30     Aug 23, 2020