Comments on: Investing in Options http://investinsight.com/124/investing-in-options/ Investing with insight Sat, 22 Nov 2008 12:36:26 +0000 http://wordpress.org/?v=2.6.2 By: Bill http://investinsight.com/124/investing-in-options/#comment-8495 Bill Tue, 04 Sep 2007 12:42:07 +0000 http://investinsight.com/124/investing-in-options/#comment-8495 Looking into options now and stumbled upon your blog, thanks for your thoughts and useful links. <a href="http://www.mortgagetown.info" rel="nofollow">Bill</a> Looking into options now and stumbled upon your blog, thanks for your thoughts and useful links.

Bill

]]> By: Ben Evans http://investinsight.com/124/investing-in-options/#comment-45 Ben Evans Mon, 04 Sep 2006 22:59:01 +0000 http://investinsight.com/124/investing-in-options/#comment-45 Hello 59ideas, You are a very smart person. Many people jump into options because of the untold fortunes that they think they can make. They don't wait to first understand how options work. A person who has an understanding of options and a conservative approach can do very well. The conservative approach doesn't get a person rich over night but it helps increase the value of their portfolio. I wish you much success. It appears as though your on the right path to making solid decisions. I am glad that you are waiting. When you are well studied and if you decide to get into options, you will do very well. Good luck Ben Hello 59ideas,

You are a very smart person. Many people jump into options because of the untold fortunes that they think they can make. They don’t wait to first understand how options work. A person who has an understanding of options and a conservative approach can do very well. The conservative approach doesn’t get a person rich over night but it helps increase the value of their portfolio.

I wish you much success. It appears as though your on the right path to making solid decisions. I am glad that you are waiting. When you are well studied and if you decide to get into options, you will do very well.

Good luck

Ben

]]> By: 59ideas http://investinsight.com/124/investing-in-options/#comment-43 59ideas Mon, 04 Sep 2006 14:26:10 +0000 http://investinsight.com/124/investing-in-options/#comment-43 Hi Ben Thanks for sharing your thoughts and insights. I am putting options aside until I have the time to look at them more closely. Hi Ben

Thanks for sharing your thoughts and insights. I am putting options aside until I have the time to look at them more closely.

]]> By: Ben Evans http://investinsight.com/124/investing-in-options/#comment-41 Ben Evans Sat, 02 Sep 2006 22:03:29 +0000 http://investinsight.com/124/investing-in-options/#comment-41 I have never spent the money to take one of these courses. I did attend information meetings for Wade B Cook's course about ten years ago. I have learned most of my knowledge through the school of hard knocks. In options, there can be very hard knocks. The big lure to options is the tremendous leverage and the potential for astronomical gains. With this in mind most people gamble and loose. I don't know how these option courses can give you any information that is not already available. Options are a derivative of the underlying stock. So you have to understand how a stock moves before you can invest in options. The biggest and the most pervasive problem with understanding options is that a trader must know how the option moves with respect to the underlying stock. When a stock goes up the option does not nescisarily go up with the stock. One has to understand implied volatility, time value, and intrinsic value play a role in the pricing of an option. Once this is understood, he can make good decisions on which contracts to choose. The last thing any option trader must understand is the stradegies that are involved in trading options. With being the writer as well as the buyer of an option, there are litterly hundreds of different stradegies and combinations a option trader can employ. Without the aforementoined knowledge, I feel a person should not be trading options at all. I also beleive that to understand options a person has to watch (not invest) in contracts to see how time decay and implied volatilty work. I wish you much success and hope this provides a catalyst for your forum. Good luck I have never spent the money to take one of these courses. I did attend information meetings for Wade B Cook’s course about ten years ago. I have learned most of my knowledge through the school of hard knocks. In options, there can be very hard knocks. The big lure to options is the tremendous leverage and the potential for astronomical gains. With this in mind most people gamble and loose.

I don’t know how these option courses can give you any information that is not already available. Options are a derivative of the underlying stock. So you have to understand how a stock moves before you can invest in options.

The biggest and the most pervasive problem with understanding options is that a trader must know how the option moves with respect to the underlying stock. When a stock goes up the option does not nescisarily go up with the stock. One has to understand implied volatility, time value, and intrinsic value play a role in the pricing of an option. Once this is understood, he can make good decisions on which contracts to choose.

The last thing any option trader must understand is the stradegies that are involved in trading options. With being the writer as well as the buyer of an option, there are litterly hundreds of different stradegies and combinations a option trader can employ.

Without the aforementoined knowledge, I feel a person should not be trading options at all. I also beleive that to understand options a person has to watch (not invest) in contracts to see how time decay and implied volatilty work. I wish you much success and hope this provides a catalyst for your forum.

Good luck

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