Does anyone here trade options?
How are they priced? Could you explain them a little bit better to me?
Also overall derivatives thread
>>1392541
https://www.amazon.com/Options-Strategic-Investment-Lawrence-McMillan/dp/0735204659
Read this first. Only a 1000 pages.
I trade options exclusively. You can get triple-digit ROIs easily. I always say that there is never a good reason to use stock if you can play options (the exception being dividend stocks):
https://www.youtube.com/watch?v=YUvZtele7h0
>>1392573
I have a question for you regarding options.
Say you wanted to take advantage of a daily price trend (higher or lower) during a prescribed time, in a certain stock.
For example, say you noticed Amazon tends to move upward from 9:30 to 10:00 daily.
Is there a combination of puts or calls (or other more complicated strategies) that would allow you to take advantage of this trend without purchasing the underlying?
Thanks in advance if you know.
>>1392591
I do exactly that with leveraged ETFs. I just buy the weekly call options.
Someone recently asked me which options to choose for such a strategy. Here's a video on the topic:
https://www.youtube.com/watch?v=Q3RD5TLpA3o
Go deep in the money if there's enough liquidity; otherwise, just go with the at the money options.
But do keep in mind that your account will be flagged if you engage in more than 3 day trades per week.