I want to learn about buying stock options. Is my idea (below) correct on how it works? - futures and options basics
I have an account and trade have played with the "day trading" stocks over 2 years. I taught myself a few strategies that I use and now I'm pretty comfortable that the majority of my selection shortly after the purchase of a share. Now I am interested in stock options. Here is my understanding ...
If I find a title that is currently trading at $ 30 and I believe the population will increase by 10% in the near future, you can buy about 100 shares at $ 30 ($ 3,000) and the hope for an increase 10% or buy a call option (100 shares) at a fraction of the $ 30 - maybe $ 1 per share = $ 100. This option gives me the right to buy 100 shares at $ 30, even if / when the price rises by 10% up to $ 33 At this point, I can buy 100 shares at $ 30 ($ 3,000) and immediately sell 100 shares at $ 33 ($ 3,300). I lose $ 100 for the option, but I can tell the difference of $ 300 with a net of $ 200. I lose the original value of $ 100, if the price does not invest not increase, but the full amount of 3000, so this is a manufacturer of some use.
It tits basic idea of stock options?
Saturday, January 23, 2010
Futures And Options Basics I Want To Learn About Buying Stock Options. Is My Idea (below) Correct On How It Works?
6 comments:
You're kind of right, but not fooled! The options are another animal, the share of friction, because you have to do a variable completely different. When options are under the photo that you have presented to you, the so-called "implied volatility, that stocks will not have to worry about anything. When do the shares were "historical volatility" (with the movement of the underlying library), but not at the "implied volatility" (with the price of the option is no more, or less than the theoretical value of option ((T value)). The t-value is that the historical volatility has said that option price, but should the option is almost always a price higher or lower than this).
Against this background, you can create a option to buy to believe that the stock prices rise, in fact, as expected, higher stock prices. But to his surprise and dismay of the option value has been reduced. How is this possible? Well, that is the variable spoke. You can use the option if the implied volatility have purchased very HIG,h (and therefore more expensive), then - for example in the publication of a share of the income of the population makes a significant upward trend, but its value has fallen options. Since the implied volatility has declined, reducing returns the value of the underlying asset is the possibility, but it increased in value.
Not in the ways of thinking, to go and play another way, the stock market is. It's quite different ... Although similar.
I know nothing about the opportunities had, except to deceive my husband has lost about $ 20,000 a few years ago it.
You're kind of right, but not fooled! The options are another animal, the share of friction, because you have to do a variable completely different. When options are under the photo that you have presented to you, the so-called "implied volatility, that stocks will not have to worry about anything. When do the shares were "historical volatility" (with the movement of the underlying library), but not at the "implied volatility" (with the price of the option is no more, or less than the theoretical value of option ((T value)). The t-value is that the historical volatility has said that option price, but should the option is almost always a price higher or lower than this).
Against this background, you can create a option to buy to believe that the stock prices rise, in fact, as expected, higher stock prices. But to his surprise and dismay of the option value has been reduced. How is this possible? Well, that is the variable spoke. You can use the option if the implied volatility have purchased very HIG,h (and therefore more expensive), then - for example in the publication of a share of the income of the population makes a significant upward trend, but its value has fallen options. Since the implied volatility has declined, reducing returns the value of the underlying asset is the possibility, but it increased in value.
Not in the ways of thinking, to go and play another way, the stock market is. It's quite different ... Although similar.
You're kind of right, but not fooled! The options are another animal, the share of friction, because you have to do a variable completely different. When options are under the photo that you have presented to you, the so-called "implied volatility, that stocks will not have to worry about anything. When do the shares were "historical volatility" (with the movement of the underlying library), but not at the "implied volatility" (with the price of the option is no more, or less than the theoretical value of option ((T value)). The t-value is that the historical volatility has said that option price, but should the option is almost always a price higher or lower than this).
Against this background, you can create a option to buy to believe that the stock prices rise, in fact, as expected, higher stock prices. But to his surprise and dismay of the option value has been reduced. How is this possible? Well, that is the variable spoke. You can use the option if the implied volatility have purchased very HIG,h (and therefore more expensive), then - for example in the publication of a share of the income of the population makes a significant upward trend, but its value has fallen options. Since the implied volatility has declined, reducing returns the value of the underlying asset is the possibility, but it increased in value.
Not in the ways of thinking, to go and play another way, the stock market is. It's quite different ... Although similar.
\\ \\ \\ \\ \\ \\ \\ \\ U0026lt \\ \\ \\ \\ \\ \\ \\ \\ u0026lt \\ \\ \\ \\ \\ \\ \\ \\ u0026lt, I would like to learn more about stock options.>>>
I encourage you to learn more about the trade before they get to them. I suggest you start with the CBOE Learning Center
http://www.cboe.com/LearnCenter/default. ...
and the location of the OIC Options Education
http://www.optionseducation.org/
AA There are many good materials, accurate, free education and good writing in both places.
If you still interested in trading options, I suggest you at least read a good book on options.
\\ \\ \\ \\ \\ \\ \\ \\ U0026lt \\ \\ \\ \\ \\ \\ \\ \\ u0026lt \\ \\ \\ \\ \\ \\ \\ \\ u0026lt; is mine (below) the exact idea of what works?>>>
His idea is a possible way to use options. There are hundreds of other species, including many that most people would much safer than what you propose should be verified.
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Successful option traders to trade in general more volatile than the direction of actions. Until we understand what it means and why it is true, most likely to lose money if you try options trading.
You are partly right, partly wrong. In your example, if you buy a call option and the stock rises above the exercise price, you need not be in the options and buy shares for a profit. You can simply sell the option (in the vicinity of the position), which should increase its value if the rise in stocks. The problem is that a person makes a call pays a premium and the premium tends to weaken or lose little value, because each day closer to the purchase date of expiry of an option.
A much safer "game" is, calls against the stock that you already own to sell. In general, you can sell a call against each 100 shares he owns. You will receive the premium and if the trade is above the exercise price of shares sold to you and you will receive the amount of the strike, unless of course the sales commission.
I read that 90% of gamers who lose money options to buy naked options. I was one of them and lost $ 90,000 before the game was interrupted. Good luck - you need!
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