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Posted: 5/22/2003 5:53:26 AM EDT
so im trying to get into selling covered calls. Have you made any money by trading options, or have you lost more money... Any tips for a noob to options?
Link Posted: 5/22/2003 6:07:20 AM EDT
Making money trading options is incredibly difficult. You have to be right twice, both on direction and time. Selling covered calls is not a bad strategy, but as a hedge it is the equivalent of jumping out of a ten story building with a pillow tied to your head. I am not being cynical. I have lost a small fortune trading these things.
Link Posted: 5/22/2003 6:08:02 AM EDT
Made money and lost money. I was trading OEX. What trading system are you using, and are you trading in stock options?
Link Posted: 5/22/2003 6:15:22 AM EDT
Options for the uninformed=casino without free drinks and ambiance.
Link Posted: 5/22/2003 7:19:58 AM EDT
I used to try. I can be done but transaction costs can eat up a lot of your profits when you have them. Covered calls are not a bad thing to do on long term holdings. Read "Options as a Strategic Investment" by MacMillan. It a very good book on the subject.
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