2006-10-26 17:55:18 · 9 answers · asked by H2Oskier 2 in Business & Finance ➔ Investing
It depends. If you use naked options then I would say yes. There are ways to use options and limit your losses. I would pick up a book and make sure you learn about option. Perosnally i would stay away from them. Options were invested as a form of insurance, to protect your investment.
2006-10-26 18:06:56 · answer #1 · answered by ffsotus 3 · 0⤊ 0⤋
Not exactly.
If you really know what the "options" are and how the money part changes with the changing rates of the base on which the options are derived from.
But yes, it is very difficult to immediately assess the monetary impact of dealing in the options. If you are buying the options (calls or puts- depending upon your perceived future lookout of the stock prices), it can be calculated as the maximum loss that you may suffer, if the base stock prices do not change in the directions you have percieved.
I suggest you read and study about the implications of investing through options a lot.
Best of luck.
2006-10-26 18:47:14 · answer #2 · answered by Nitin G 7 · 0⤊ 0⤋
The bottom line is you should know the direction of the stock prices. It doesn't matter if you have invested in the stocks or not. You should feel that a high probability that stock price will move on your favor
2006-10-26 19:16:45 · answer #3 · answered by CulturedQuant 2 · 0⤊ 0⤋
Stock options are derivatives, meaning they derive value from stocks so a fundamental understanding of what affects stock prices is needed before attempting to trade options.
2006-10-26 21:33:49 · answer #4 · answered by xcalibus 2 · 0⤊ 0⤋
My last Valentine's day. I got listed off things I do that annoy my bf, didnt even get a card, got taken out to TACO BELL, saw a lame movie, got into an argument for 4 hours and cried all night long. meanwhile i spent $40 on a nice card, a bunch of candy, and sexy lingerie. WHICH i did not get to use, because he threw a fit about a burrito being too hot in front of my parents. Then he laid down and said his head hurt when we tried to bone I am trying to forget that I was with this guy for TWO YEARS!
2016-05-22 00:04:09 · answer #5 · answered by ? 4 · 0⤊ 0⤋
very bad. get acquainted with stock first and the move on to derivatives or stay with stocks
2006-10-26 20:17:53 · answer #6 · answered by NewBornMan 2 · 0⤊ 0⤋
Check out investopedia.com and paper trade, read the tutorials then if you do well you will have to find a brokerage that will let you trade, you have to be approved first.
Good luck...
2006-10-26 18:37:14 · answer #7 · answered by cmac 2 · 0⤊ 0⤋
Yes.
2006-10-26 17:58:58 · answer #8 · answered by Marti M 3 · 0⤊ 0⤋
yes, you will lose all
2006-10-28 11:11:30 · answer #9 · answered by vetech_61 2 · 0⤊ 0⤋