Has Anyone Ever Traded Options?

Post Reply New Topic

Since the topic of investments comes up from time to time...

Does anyone have experience with options trading? Is it something I can structure in a way so that I don't lose my shirt? How can I get started?

I have invested in stocks and bonds for over a decade, and it's been rather fulfilling as a hobby (and I'm pretty good at it). I stayed away from options because I thought of them as risky. But like with any endeavor, so long as I understand the risks and am willing to accept loss from time to time, I should be okay

The most you can possibly lose with an option is the price you pay for it. You'll need to keep track of a few thing with options that you don't with stocks and bonds. Options typically have vesting periods, expiration dates and other special conditions. Assuming you're looking at the least restrictive terms, you'll get the worst deals on the market. It's not something I would stay away from outright, but your market position puts you at a relative advantage to stocks.
The shirt-fleecing instruments to watch out for are derivatives. These are too risky for amateurs (or most professionals for that matter).

Please pardon my autistic trait of being brutally honest. Option is a type of derivatives. The rest of the concept are fine.

I really, really, really, feel bad about this subject, I know how to trade options but have two problems, too much work at my regular job and a girlfriend who eats time and money.

I have got to do something about this, there are very unlikely to give any raise to me so I need to do something about this.