just a quick example.
I just wanted to show how much more profitable options are over buying stocks(if you pick right). When I bought this, the price for one stock was 19. I got this for $65. the price of Intel has only gone up 2 dollars, and I'm up 37. plus, I still have until 12/20/24 with a $27 strike price for the price to rise. when the stock was $35, this same option was worth $880. the price difference is insane to me. This isn't buy/sell advice for Intel, I'm just using this as my example. Also, I'm not saying I think there is a chance it will go to 880 again.
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I love to study companies and Candle Stick formations. My goal is to become a full-time trader.
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GoldmanStacks : I'm with you 100% on that. It literally makes zero sense to buy equities
Sean Parker OP GoldmanStacks : I still buy stocks because I am to new too options to rely only on them alone. I like to make random swing trades for fun aslo.I just know, reading about options and buying them are two completely different things. It's Worth the extra effort learning them.
KSOL Sean Parker OP : where and how did you learn it?
isn't it risky if what u bought move completely another direction?
Kuala_Lipis : Great profit, sir! I hope you become a billionaire like Elon Musk and Mark Zuckerberg.
Sean Parker OP KSOL : Yes, the risk is for sure higher but thats why its best to learn as much as you can before getting in. I learned from moomoo options training and watching videos on youtube and reading about them.
Even after all that i was still very confused after i bought my first one. I also lost money on the first 2 that i tried. I bought one that was too close to the experation and my strike price was to high. I thought i was weird that they were only 10 dollars a piece but its because they already lost all their value.
You will learn as you go, but in the long run, I do belive it is completley worth the time and extra money you have to put up front.
Just start with cheap options you can afford, I would suggest call options. That way if you lose money, it will only be what you paid. I started with a $15 one to learn how they worked.
Sean Parker OP Kuala_Lipis : I dont have that much invested lol. We all have to start somewhere though. Thanks for the confidence, Good luck today!
GoldmanStacks Sean Parker OP : it is beyond worth it, but it's not for everyone. The first time I tried looking into it, it went way over my head, I was like, "wtf is this black magic?" lol. then, after trading equities for a few years, I decided to give it another shot and just traded options in a Sim account for 1.5 years, 5 days a week as many trades as I can do, to wrap my mind around it, and test things etc. I don't sell contracts, not into opening myself for potential infinite losses. It's mathematically impossible to come up on top over time.
Sean Parker OP GoldmanStacks : sounds like we took the same path then lol. I didnt understand them at all at first. I was completely lost and just stuck with stocks for a year. The first one i bought was a complete fail... and i was still confused lol. now im just waiting for my stocks to go up enough to sell so i can buy more options. I'm to scared to buy Put options, but i have been thinking about trying a strangle or straddle.
GoldmanStacks Sean Parker OP : I only buy calls or puts. your upside is theoretically unlimited and downside limited to the cost (premium), you know exactly the maximum you can potentially lose. and so you can decide if the risk/ reward is worth it. selling (wiriting) contracts is the opposite, your profits( premium) are limited, and losses potentially infinite. With equities, you expose 100% of your capital to potential loss. you also need to commit a lot more capital, and it's basically locked in once you buy, just sitting there.
Sean Parker OP GoldmanStacks : I'm just a little impatient, so day trading keeps me busy enough not to sell my option as soon as the price goes over 40% lol. I only trade low float stocks for the same reason I like options. fast up or down swings keep me interested. the difference is I'm happy with 40% on a stock, I want to see 400% with my option lol