Options trading any thoughts

[arod15]

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from my understanding trading options is simliar to playing poker.

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The closest buying options comparison to poker would be MTTs... your loss is limited to your buy in, some make a few $, some get a huge return!

The closest selling options comparison to poker would be a staking agreement.

There are many different option strategies, all with significantly different risk/reward models.

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to make $100/hr+ trading options apparently takes a bankroll far greater than what you need to make that money playing poker. were talking 6 figures from what i understand.

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First, one of the benefits of using options is leverage. You can start trading options with a very small amount of $.

Second, the time spent managing an option position is minimal. So, to make $100/hr of actual time spent is signiicantly easier than doing the same thing in poker. (which is not to imply that making $100/hr is easy for the average person in either case)

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like the anaolgy that is more accurate in the end you cant loose more than the intiatal investment you only stand to gain. Where the option provider only stands to lose.

[arod15]

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The best books to read on Options are by Mcmillan and Schaeffer, as has already been suggested.

Options can be used in many different ways, some speculative and some conservative.

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ill pick up the Schaeffer does he have many books or just one if so what is the name? Thanks in advance.

[snowbank]

i see well it is between buying real estate or options i realize that options has higher reward opportunity but that the real estate is much safer

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[eastbay]

Just order the stuff from the infomercial you were watching. It will tell you all the insider's secrets to unlimited wealth through options trading. Ditch your 9 to 5 and take control of your destiny!

eastbay

[arod15]

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Just order the stuff from the infomercial you were watching. It will tell you all the insider's secrets to unlimited wealth through options trading. Ditch your 9 to 5 and take control of your destiny!
Actually i learned about it through seeing how some of the world's biggest instatutions trade them with hundreds of millions of dollars. I have a good overview on the subject but still want to learn more before i throw my pennies in that well.
eastbay

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[cwsiggy]

I see the Schaeffer book got panned on Amazon - though take that with a grain of salt. I still like his website.
You may also want to read a book on candlestick charting as it will help you to set up your option trades. Steve Nisson is the God on this topic.

[Sniper]

Schaeffer - The Option Advisor
http://www.schaeffersresearch.com/

McMillan - McMillan on Options & Options as a Strategic Investment
http://www.optionstrategist.com/

[Paluka]

You guys are only going to do yourselves a disservice by constantly comparing options trading to poker. When you are an options market maker, trading has some similarities to poker that you might want to keep in mind. From a customer point of view I don't think there is any such analogy that is going to do you any good.

[tek]

Two suggestions. 1) Write options. writers make the money
2) I traded OEX for a brief period of time in '98. Very exhausting. Makes the stress and variance in poker seem like laying on a hammock with a lemonade...

do you want to buy or sell?