Options & Rights

[Anonymous No.15757652]

Am I getting this right that we are paying an initial premium for the right to cash in on an options contract?

We are protected because we don't have to buy or sell if it goes south, but we do pay that premium for the "option"?

[Anonymous No.15757720]

>>15757652
>We are protected because we don't have to buy or sell if it goes south, but we do pay that premium for the "option"?

Yes and options lose value everyday through time decay.

You ever traded an option?
You want my copy pasta advice on options?

[Anonymous No.15757730]

>>15757720
Send it senpai

[Anonymous No.15757762]

>>15757720

I'd appreciate your copy pasta, yes sir.

I also hope you'll stick around for questions.

[Anonymous No.15757781]

>>15757730
>>15757762
Learn to trade options form ex floor traders
https://www.youtube.com/user/tastytrade1/videos

Why selling options has profits
https://www.tastytrade.com/tt/shows/market-measures/episodes/actual-vs-implied-moves-07-16-2019
https://www.youtube.com/watch?v=amao0pJE1XI

I would start by selling a put on cheap stock you would own anyway.

Guy makes a million a year on 5 million consistently selling options
https://www.youtube.com/channel/UCg6XBPhtVqntGhtAblXxybg/videos

Learn from actual money managers
https://www.youtube.com/user/OpalesqueTV/videos

Chat with traders is good to start so you can learn what style matches your.
https://www.youtube.com/channel/UCdnzT5Tl6pAkATOiDsPhqcg

If you’re good people give you money based on performance
Jack Schwager who wrote the Market wizards book series created a platform to give traders money
https://fundseeder.com/traderplatform
https://youtu.be/IpQK3Oo1zSI

Ask any questions you want

[Anonymous No.15757796]

>>15757781
Is TA a meme?

[Anonymous No.15757802]

>>15757781

Thanks for the info.

Do you trade crypto or just stocks? If you do trade crypto then do you have a preferred exchange for trading options?

[Anonymous No.15757868]

>>15757796
>Is TA a meme?
No it's just a way to measure human psychology.

I recommend using a super computer for TA.
Martin Armstrong has a super computer that makes price predictions and it's really accurate. He has 6,000 years of economic data in there. I highly recommend you read his stuff. That's where I got a trade idea that went up 44X
https://www.armstrongeconomics.com/blog/

[Anonymous No.15757880]

>>15757802
>Do you trade crypto or just stocks? If you do trade crypto then do you have a preferred exchange for trading options?

I mainly trade stock options

[Anonymous No.15757910]

>>15757880

Fair enough.

I've been doing preliminary reading and from what I can tell it's often suggested not to use calls but rather puts as a retail investor. Do you agree with this?

[Anonymous No.15757981]

>>15757910
>from what I can tell it's often suggested not to use calls but rather puts as a retail investor. Do you agree with this?

I'd be neutral to that advice.

The main things to understand options have been:
historically overpriced by about 5% so the edge is in selling options.
90% of options expire worthless so the edge is in selling options.
The majority of time decay occurs in the last 45 days of an option, so sell options with 45days expiration and buy options that are long dated.

Do you invest/trade stock currently, if so give me a stock ticker of something you like and I'll show you an example trade.

[Anonymous No.15758009]

>>15757981

I do not. I'm reading about options with the intention of beginning in the crypto space because that's what I've spent my time on thus far.

[Anonymous No.15758081]

>>15758009
>beginning in the crypto space because that's what I've spent my time on thus far.

A simple way to start is.
If there is a crypto you own and would'nt mind owning more of sell a put option on the crypto at a price you would like to buy it at.

[Anonymous No.15758107]

>>15758081

You've given me some powerful points. I appreciate that.

Options seem especially interesting because of their ability to provide a sort of income.

[Anonymous No.15758124]

>>15758081

Hell, selling puts as a hedge for my long holds is useful if that's the only thing I use them for.

[Anonymous No.15758229]

>>15758107
>You've given me some powerful points. I appreciate that.
Glad to help

>Options seem especially interesting because of their ability to provide a sort of income.

If you want income start by selling a put.
Later you can look at selling call/put spreads

[Anonymous No.15758893]

How do I make good decisions with options? My results thus far are essentially coin tosses.

[Anonymous No.15759257]

>>15757652
dude who the fuck cares about the semantics just buy calls if you think the stock is going up or buy puts if you think its going down lmao

[Anonymous No.15759877]

>>15757981
You make good points here.

I realize that you're suggesting people should sell Puts on an amount of stock and price they'd be ok with buying at anyway, but I just think that you should at least mention the term "Naked Option", so that people can look more into the potential risks involved with selling those.

You've mentioned Spreads as well. So I'll mention some Credit Spreads people can look into:
https://www.investopedia.com/terms/b/bearcallspread.asp
https://www.investopedia.com/terms/b/bullputspread.asp

With Credit Spreads, you're basically selling a more expensive Option and buying a cheaper option at the same time. The net result is that Gains (the net premium received) and Losses are known beforehand and capped.