Can someone explain Options trading to me? I need to become rich

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>>1605261
Seriously

google it you dumb fuck

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>>1605306
Wow. No need for name calling,I read the investopedia article and came away a little confused

>>1605261
Its too confusing for most people bro. Don't feel bad, I tried and I failed lost about 5200 on paper.

If you have a clever mind for math then try paper trading on OptionsHouse and see what you can do.

From what I could tell, its not as much about getting the Call or Put correct (its not binary) as in more about finding the perfect Strike Price where latecomers see some profit potential in your choice.

Trying to find the sweet spot on Implied Volatility is the challenge.

Try signing up to WatchHimTrade.com - this guy lets you watch him day trade Options for a small fee, he seems sort of bad at it actually but it would show you the principles.

You can find Options gurus on Stocktwits.com too they can help.

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>>1605261
first off , i'm not feeling that redhead you keep posting. you need a hot-blooded dark woman in your life to slap the shit out of you imho.

secondly, options trading is just gambling. being a math genius isn't a necessity if you can make good predictions based on fundamentals.

i.e. there's a recently ipo'd gay tech company that fucking sucks - ok great buy put options that expire after the lockup period ends.

people are going to be nervous about the election - ok great buy call options on volatility.

short term options= more risk, more profit and vice versa

far out of the money options=more risk, more profit and vice versa

just pick something you're pretty sure is going to happen, pick your strike price and expiration date and get rich.

it's not that complicated

be sure to read the blog at armstrongeconomics.com every single day.
https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/the-markets-heading-into-election/

>>1605261
Hull (2012). Options, Futures and Other Derivatives

>>1605261
When ask for a tutorial about options, you really shouldn't fuck around with them. Read a book.

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>>1605389
>everything about this post

just kys

>>1605389
>if you can make good predictions based on fundamentals.

people who think they can make 'predictions' are usually a bit naive

>>1605261
>>>/wsg/1383999

They're a valuable tool that shows you it's not hard guessing the direction of a stock, it's the when that matters

Calls: You buy the right to own X amount of shares at a certain price (strike). If the market goes above that price, you can then sell it back at the markets price and you keep the difference in profit x # shares. The most you can lose is the premium you spent to acquire the shares for X amount of time. When you sell a call, you gain the premium immediately and hope the market doesn't go above the strike

Puts: Similar to call but you hope the market is bearish. You buy the right town own a share at a strike price and at anytime before expiration you can sell it back and keep the difference if the market fell. When selling you keep the premium and hope the market doesnt go below the strike.

At anytime you can remove youself from the position if things are looking sour or you think the order has hit its max profit peak.

When buying, the most you lose is the premium you paid for the share, when you sell though, the most you can lose is theoretically infinite. Lets say you sell a call ATM and it skyrockets. You now have to pay the difference from the strike to where it is which can be thousands of dollars

You can create several different combinations of these. (look them up, there's seriously 20+ ways). These are generally the most popular as they dont have large amounts of profit, but they are a lot less risky often gain you a profit.

>>1605261

They are bassically insurance.

options trading is only for people who have a lot of money to trade. i wouldn't open an options account with less than 100k

>>1605261
Options are advanced mode
You have to understand volatility and time decay and shit. When I first started I would buy calls at good prices just like stock picking and be right about the price but get fucked from holding the option too long. The best is when your underlying price moves right into the money strike price but you still lose money because you bought an overpriced option. Then there's shorting options and getting exercised on when you fuck up. You'll learn fast tho try it

>>1606985
>>1606990


listen to these two