Any body know about option investing?

Question

how it works

Answer 1

Yes.

I am a Registered Options Specialist.

Options Education (Official Industry Source)

Everything you need to know is here.

http://www.optionseducation.org/

Private classes are expensive and all about hype.

Answer 2

I am a beginner in option, heres a few thing I learned about options:

It is cheap because it gives you a large amount exposure to a stock with relatively small amount of money.

It is more risky because you can lose 100% of your investment if the underlying stock does not move or move in a different direction than you anticipated.

Avoid options expire in less than a month because they lose value too quickly. (Unless you are really convicted that the stock will make a big move immediately)

Buying puts is a nice substitute for short selling, the reward is less but so is the risk.

Let say you are heavily invested in one sector, you can buy puts on the worst companies of the sector. If the sector crashes, your put will incease values, so you total loss is less.

Hope that helps.

Answer 3

There are different types of investments, i am not sure the purpose of your investment plan , however i would say always prefer short term investments , that would help you a lot.

Answer 4

I've spent the last year learning about options and option spreads.  I currently do some covered calls and veritical spreads.  It's a lot of hard work... but well worth the time.

(dangerous stuff.... if you're not educated)

Check out;

https://www.cboe.com/

http://www.optionaddict.net/

http://www.insanemoney.com/

http://www.optionplanet.com/

http://tryumph.wordpress.com/

http://www.redoption.com/ (these guys trade options in my account).