|
Quote: |
|
 |
|
|
It's threads like this that scare most people competely away from trading options. It is made to sound like it is incredibly complicated. While that certainly can be the case, it doesn't have to be at all.
A while back I completely shifted away from actually trading stocks themselves to using a very simple and straight forward option strategy to position trade stocks. No spreads. No worrying about B-S and getting all tied up in Greeks (and yes, I am very familiar with option pricing models and methods). The options give me a fixed downside and don't use up nearly as much of my capital as holding the stock would. |
|
|
|
|
Hi Rhody,
I do agree that it can be made to be very easy. As for fixed downside, how are you fixing that? What strategies are you using?
For example of easiness, I had just bought a few calls of CROX right after Christmas and recently it had broken out to new highs and I sold the calls after making 44% on them. Not bad for a few weeks of holding.
Buying calls can work good, but you have to understand volatility and how it's going to play into that option youre buying. If not, you could buy into a winning stock, but the option could hardly move compared to the underlying if the volatility is just getting sucked out of it.