Options

[Hanger]

Anyone on here mess with options? Just looking for a few good options books?

I have been reading online, but just want to see if tech analysis differs at all from options and actual stocks.......I am guessing not, based on what an option really is, but I don't want to go too far "guessing"

Thanks!

[jacobnbr1]

yes it matters alot to know t/a, get books and read for two years and the paper trade for 6-12 months in bull and bear markets. Then trade...
the best book i might say to read is- 1. candlestick charting explained by Gregory Morris 2. New trading systems and methods by Perry J. Kaufman.
Read at least twice and throw out all knowledge retained from Jim Cramers Real Money and the book... Also, those books are only going to help you if you know how the market works, if you are confused about some stuff you will only make the apearance more clowdy.( if you know what i am saying?)

take my advice, i traded an account down 8k on bad options trades. I still do options but i have the t/a knowledge to say yes or no. i like time decay spreads aka the butterfly spreads, and iron condor's.. I will never post any plays i do on options, sorry.

[chinaman711]

I have been trading options since the 90's and stocks since the 70's and you better know what your doing when you trade options. Some real good advice posted by Jacob. Check out cboe.com lots of info there. I just attented a bettertrades seminar wed. on trading options in indianapolis. For $3000 they will teach you how to trade options if you get a chance go to one of their free seminars or go to their web site some info posted there. The best way to learn is to just do it but do it paper trading and read all you can as most options expire worth alot less then you paid or worthless. You can make a nice little profit selling covered calls on the stock you own. You can make huge profits on stocks that take off or stocks that tank with puts and calls. You can also lose alot with puts and calls so i would advise not playing these with real money till you know what your doing. Options also give you leverage to play the high priced stocks like GOOG. Hope this helps just be careful with options. By the way im holding calls on xing and cvx and would like to see some leaps on xing soon.

[Hanger]

Thanks for the input guys....

I have been papertrading SPY for a couple months now, and intend to continue doing so......

I chose SPY based on the fact that I thought it would be a little easier to learn the options world using SPY, as market movement can be a little easier to predict.....


Overall I am holding my own, up about 10%, I know there is a lot of money to be made/or lost in options, and am happy with 10% on paper, especially given the markets movements over the past few weeks....

In regards to Cramers books-

I have not read any of his books, and will not...I find that he is best used as entertainment purposes and his picks allow greating shorting opportunities.lol....

Thanks again for the advice, and any other book recommendations would be greatly appreciated...

[Bman409]

Originally Posted by Hanger

Anyone on here mess with options? Just looking for a few good options books?

I have been reading online, but just want to see if tech analysis differs at all from options and actual stocks.......I am guessing not, based on what an option really is, but I don't want to go too far "guessing"

Thanks!

My opinion on options is simple:

Don't trade Options. You will lose ALL of your money (yes, I mean ALL)


Bman