heard option market gives better return but dont know how to trade.pls help.
2007-10-30 01:49:55 · 3 answers · asked by nagom 1 in Business & Finance ➔ Investing
First, understand that to get higher returns you need to accept higher risks.
Second, you can learn a lot about option trading without a personal coach. You can start by going to
http://www.cboe.com/LearnCenter/default.aspx
and taking the online tutorials and online classes. They are free.
After that, I recommend you read one or two good books on options trading. Browse through books at a large library, a large book store, or at amazon.com to find one that you find easy to read. Two books I recommend you consider are "Options as a Strategic Investment" by Lawrence McMillon and "Options Volatility & Pricing" by Sheldon Natenberg.
Do not be afraid to ask questions. You can ask here, on a Yahoo message board such as
http://messages.yahoo.com/Business_%26_Finance/Investments/forumview?bn=4686677%23optionsquestionsansweredhere
or you can send a question to the Options Institute.
2007-10-30 02:23:17 · answer #1 · answered by zman492 7 · 0⤊ 0⤋
Go to Motleyfool.com or morningstar.com, they both have tutorials on option trading. Basically you go long a call if you think the price is going up and long a put if you think the price of a stock is going down. You pay a premium for the right to exercise a buy (call) or sell (put) of a stock at a specific price. There are many more strategies, like writing options and playing straddles that require a lot more expereince.
2007-10-30 01:55:31 · answer #2 · answered by redwine 6 · 0⤊ 0⤋
Read Sheldon Natenberg's book Option Pricing and Volatility. It's the very first book that professional option traders read.
2007-10-30 02:33:04 · answer #3 · answered by Oh Boy! 5 · 0⤊ 0⤋