Risk and Rewards

May is the month I got curious about Option and actually tried it. My first call option on AMD spending $50 gave me 10x return. call it luck or what's not, I got hooked and since then have repeated some successes and failures on other symbols.

Having dabbled long in stock trading, I understood the importance of risk and rewards. Finding the timing and entry prices is the most crucial part of trading, more so for options. The good thing about options is that I can spend relatively little to have substantial gain. Nearing expiry options + expected near term volatility such as earning calls or sudden price movement tends to work for me.

There's still a lot for me to learn especially on knowing how to hedge my trades better. I will remind myself to not let greed overtake my rationale and only trade what I can lose.

Here's my May P/L. Cheers.