2006-07-05 15:15:42 · 6 answers · asked by palmerinkid 1 in Business & Finance ➔ Investing
Sure I have been trading options for years and have had much sucess. A beginner strategy that I still use is sticking with very liquid stocks. Such as exchange traded funds like QQQQ, DIA, SPY. Use technical investing to pick entry points (a good site I recommend for that is signalwatch.com click on Dow and you will get free analysis of how the market is reading technically) Wait till the market is either looking overbought buy puts, if it is looking oversold buy calls. Also make sure you pick a strike price that is very close to being in the money. And make sure you give your self at least 3 weeks before the contract is going to expire which will normally give you a few opportunities to take profits. Dont be greedy. Dont panic. Experience is the key to being sucessful at anything.. Don't invest more than you can afford to lose. The most important lesson to learn in option trading is studying what the movement in the stock will do to the price of the option..........many times if the market has it priced in a stock is overvalued the stock will sell off a few buck or go up a few bucks and your option will not move....That is why it is best to trade very liquid contracts. Good day.
2006-07-05 15:34:56 · answer #1 · answered by private_malone_66 2 · 0⤊ 0⤋
1
2016-12-25 04:32:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Stock options are 100% gambling. That said let me add 80% of traders in them lose money. So who are the 20%? In a way they are the low odds low risk sellers. These are usually people that manage huge amounts of stock they are very familiar with. They hedge their postitions with options. So what does all this mean? If you don't want to be with the 80% that lose, bet with the big boys. The returns are less but they are usually solid.
2006-07-05 15:22:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No idea about that:
I am a professional day trader, who teaches trading to beginers in free time.. especially when there is no earning season going in the market..
let me know if you are interested.
I also help opening up accounts, as I know where to get the best deals and stuff like that..
let me know..
Girish
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2006-07-07 02:06:19 · answer #4 · answered by kgirishraman 3 · 0⤊ 0⤋
Try Covered Calls, easiest way for beginners to make money in options.
2006-07-05 17:14:11 · answer #5 · answered by marketwizard 2 · 0⤊ 0⤋
read news, find out what may happen tommorow,
mostly it is too late if you read what is going on today, unless it is trend
2006-07-05 16:16:57 · answer #6 · answered by Henry W 7 · 0⤊ 0⤋