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Posted: 4/2/2020 2:48:55 PM EDT
Link Posted: 4/2/2020 3:20:23 PM EDT
[#1]
Quoted:
I really no nothing.  Do you have to own the stock if you do a put?  What about a call, do you have to buy? What happens to the couple of bucks if you dont buy (call) or sell(put)?

Just looking for info, and maybe a cheap and safe recommendation?
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I’m interested in this as well, but pretty sure there ain’t nothing cheap and safe about options!
Link Posted: 4/2/2020 3:26:40 PM EDT
[#2]
Link Posted: 4/2/2020 3:33:44 PM EDT
[#3]
Just don't
Link Posted: 4/2/2020 3:34:44 PM EDT
[#4]
Link Posted: 4/2/2020 3:45:35 PM EDT
[#5]
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Quoted:

Thanks for the info.  

I'm here to learn.
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You can do it all with leverage. You will either become very rich or very poor but I promise it will be very quick.

There are ways to do it without owning actual stocks also in many cases which ups your risk a lot too.
Link Posted: 4/2/2020 4:21:45 PM EDT
[#6]
Kinda depends what you're looking to get out of it and what specific area in options trading you want to target, but there are a lot of ways to make safe money in options.

If you really want to get started in options, start with writing covered calls on QUALITY stocks. Starting with sells helps you learn a lot in regards to buy plays, etc., IMO.

I'll give an example of a play I made yesterday on ROKU...
I did a 4/3 expiration at $92.50 OTM (out of the money) strike, share price was $89/$90ish at the time. This is me betting I won't get assigned tomorrow, either way, doesn't matter. I pocketed the premium of $215 per sell (per 100 shares). If off chance I get assigned (unlikely), I'll either do a buy on something else, or re-buy ROKU in the next dip. The premium is free money for offering up the option for someone to buy my shares at the OTM strike. My buy price being lower, obviously, additional gains.

You will have to figure out a strategy, which will vary depending on the stock in question. On stocks like ROKU/MSFT for example, I do 1 or 2 week CC's, 3 tops.






Link Posted: 4/2/2020 5:37:17 PM EDT
[#7]
I don't understand a lot of the Stock and investing lingo yet myself.

I've read a few things, but all the put, pull, call, option, short, tall, margins, etc.. etc.. gets me confused.
All I know how to do is Buy one or more shares, sell one or more shares and collect dividends on said shares...

I've only be messing around with this here and there there since late December and as I have money and I'm already generating a bit over 525.00 a year in dividends. I know $525.00 a year is pennies to a lot of folks in the ARFcom millionaires club, but I'm just starting I know I've got a lot to learn.

Also, this stupid corona BS has slowed things down and several of my Stock picks have dropped or reduced their dividends. So, that's not helping my income from this either.
My short term goal is to be at 100 a month or 1200 a year by year end or sooner if possible.  
Then on to the next goal.
Link Posted: 4/2/2020 6:02:52 PM EDT
[#8]
Link Posted: 4/2/2020 6:25:05 PM EDT
[#9]
Quoted:
I really know nothing.  Do you have to own the stock if you do a put?  What about a call, do you have to buy? What happens to the couple of bucks if you dont buy (call) or sell(put)?

Just looking for info, and maybe a cheap and safe recommendation?
View Quote

My cheap and safe recommendation is that you shouldn’t go playing around with options you don’t understand based on the advice of some rando on a fun forum

While options don’t necessarily have to be risky and can make a lot of sense depending on what you’re doing and why, there is a reason you have to apply and be approved to use them. They can eat your lunch in a hurry if you don’t understand what you’re doing or just start yoloing shit.
Link Posted: 4/2/2020 7:46:43 PM EDT
[#10]
Link Posted: 4/2/2020 8:54:19 PM EDT
[#11]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


I’m interested in this as well, but pretty sure there ain’t nothing cheap and safe about options!
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
I really no nothing.  Do you have to own the stock if you do a put?  What about a call, do you have to buy? What happens to the couple of bucks if you dont buy (call) or sell(put)?

Just looking for info, and maybe a cheap and safe recommendation?


I’m interested in this as well, but pretty sure there ain’t nothing cheap and safe about options!


Depends your definition of cheap, depends on your definition of safe.

They are a nice vehicle for getting a large position in a stock for relatively little money HOWEVER it's much easier to lose your principal and there are usually substantial premiums that you pay above and beyond the intrinsic value of the option.

It can be "cheap" in the sense of a lot of bang for not a lot of dollars.  But it's not "cheap" in the sense of being an efficient way to invest.

It can be "safe" in that you don't have to put as much money at risk.  But it's not "safe" in the sense of your principal being less at risk.

Link Posted: 4/3/2020 12:08:37 AM EDT
[#12]
The CBOE has online courses under education. IF you want to learn more.
Link Posted: 4/3/2020 1:22:24 AM EDT
[#13]
Link Posted: 4/4/2020 11:28:43 PM EDT
[#14]
The Understanding Options book looks interesting.

These may help and the price is right.

https://www.investopedia.com/options-basics-tutorial-4583012

https://www.nasdaq.com/articles/nasdaq-options-trading-guide-2019-06-10

I believe E Trade has a tutorial and Option Analyzer as well.
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