Would this relate to uncovered calls or naked calls? So that he/she would be subject to untold liability if they let the uncovered call go and the price of the stock rose and rose and rose before he/she made a buy, but since they are committed under the options purchase to buy they lose everything?
2007-02-24 09:09:21 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
skahhh, get yourself a mentor first.
2007-02-24 09:25:15 · answer #1 · answered by Third Son of Marianne 3 · 0⤊ 2⤋
If you are begining - Play with Monopoly Money first - Covred Calls are simple and normally you can make money if you are on top daily - Puts are a bit different but also manageable - Best bet COVERED CALLS - You need more money but you are safe when you sell the option - When you buy, you need very little capital and can always sell before expiration date -( same as covered calls )
Usually I buy and/or sell for two months ahead - Give them time to go up in price / And NEVER let price of call drop more than
0.25 cts - Play it safe my friend I have been trading for many years -
2007-02-24 18:33:48 · answer #2 · answered by Semper Fi 1 · 0⤊ 0⤋
when you "let an option go" it becomes a moot point. If the option expires it's dead, gone, forgotten. If you're talking about the stupid context they teach you in school where you cover your position of a call with a put... then if I stand on my head this question may make sense.
2007-02-24 17:33:25 · answer #3 · answered by Modus Operandi 6 · 0⤊ 0⤋
You have to start somewhere. If you buy options you have no risk other than the $$ you paid for the options..
Covered calls are another good way to start trading options. I have a blog where I track my trading in covered calls.
http://coveredcall.wordpress.com/
2007-02-24 18:52:13 · answer #4 · answered by Tim P 2 · 0⤊ 0⤋
For the fact that he is not experienced
2007-02-25 13:59:51 · answer #5 · answered by cho 2 · 0⤊ 1⤋