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Old 09-25-2007, 01:23 PM
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Re: Why can't you just....

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HAHA! Options aren't really that difficult to understand. I think a lot of people make it out to be more difficult than it really is. Sure, there are a lot of different strategies one can use to make money, but in the end its all based on the parent chart and if you can read one chart, IMO, you can read all others. If you're interested in trading options, then PM me...I've got lots of useful info you want it.
That's not 100% accurate Tin.

As I mentioned above, you can literally buy a call (want price to go up) and the underlying stock and future can go up but you can lose money on your option play! I'll never forget a trade I did a few years back on Boyd Gaming - nice chart, looked great for a long. The stock shot up nicely. My call option however lost significant value b/c of the implied volatility.

So, to say that you just need to read the parent chart is misleading. Not only do you have to read the parent chart, you then have to read your option strikes and compare the Greeks, IV, etc. It's not as easy as seeing a buy on the parent chart and buying any call you happen to see.

I just wanted to provide that other side of the coin b/c any newbies out there, and there appears to be an influx of them recently, should know this.

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