Stock Options
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You trade options too?Originally posted by finance_geek:Options are interesting indeed,I know of fellas making good money creating spreads.
Ya, it's pretty interesting. Your friends must be lao jiaos of this to make good money. I once went for the group meeting and some of the oldtimers told me that they spend the first few months burning their fingers.
I envy those who do this full time, cuz they only need to work in the night for a short while when the US market opens. -
If you want to be a millionaire, you must speculate!Originally posted by Honeybunz:You trade options too?
Ya, it's pretty interesting. Your friends must be lao jiaos of this to make good money. I once went for the group meeting and some of the oldtimers told me that they spend the first few months burning their fingers.
I envy those who do this full time, cuz they only need to work in the night for a short while when the US market opens.
I tell you what, trade futures better. Futures trading is easy to understand.
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not really tat tough....u must know the fundamental of wat's a call n put option...den put them into long or short position...slowly u will understand..Originally posted by Honeybunz:both. Still trying to get a hang of the long call spreads and long put spreads.
Won't be going into straddles, strangles and calendar yet. Too difficult for a newbie like me. -
Hello....
I'm Li Ka Shing and I'm here to help u. (joking)
When u type Stock Options as the title, I thought it's like a company stock options for employees. Generally that's what they mean by stock options, but I guessed too this thread could be about Options.
Erm....by the way, for more experienced people, please don't discourage new people. Everyone can learn, and eventually can be experienced too, if not more.
So, ok, when u do ur calculations, Im not sure what exactly u r calculating and how u do it, but I think I get the idea what ur problem is.
The pricings are determined by the market, so it changes all the time. It's not static. And the market may place more, or less, value. So u have a changing value, reflected in changing price. And, options have expiry date, so as time pass, the value of an options decrease. It will be reflected in a decreasing price as well. These reasons will make ur calculations obsolete. I don't know exactly what u r trying to calculate, but u need to keep these changes in mind. That's why when u calculate today, tomorow it won't be the same. So u have to place ur trade soon after u finish calculating. If u delay ur trade, u might need to re-calculate, or use the same calculations but adjust ur trade positions a little. -
Li Ka Shing,Originally posted by Li Ka Shing:Hello....
I'm Li Ka Shing and I'm here to help u. (joking)
When u type Stock Options as the title, I thought it's like a company stock options for employees. Generally that's what they mean by stock options, but I guessed too this thread could be about Options.
Erm....by the way, for more experienced people, please don't discourage new people. Everyone can learn, and eventually can be experienced too, if not more.
So, ok, when u do ur calculations, Im not sure what exactly u r calculating and how u do it, but I think I get the idea what ur problem is.
The pricings are determined by the market, so it changes all the time. It's not static. And the market may place more, or less, value. So u have a changing value, reflected in changing price. And, options have expiry date, so as time pass, the value of an options decrease. It will be reflected in a decreasing price as well. These reasons will make ur calculations obsolete. I don't know exactly what u r trying to calculate, but u need to keep these changes in mind.
Teach me how to be rich~! hahaha
Jokes aside
Thanks for your input. -
Be careful of futures,you have to mark them to market daily,will burn if you're not careful.Options are way better,no legal obligation to take delivery unlike futures,where you may have to close your positions.
I have this advise,something given to me by those in the finance industry.Stay AWAY from derivatives unless you are a professional.Dont be attracted to the leverage alone.Its very mathematical,not something a layman can do.The Black Scholes models has been proven to be flawed,so you need to understand advanced option pricing models just emerging.Also,you need to adjust the pricing to whether the option is American or European.
Hence,rule no.1=Stay away from derivatives and forex.Leave it to the professional traders to speculate.Only use derivatives for hedging purposes,and not to make additonal cash.
I think if you wana invest,just got for index funds,since the SIngapore market and the US markets are semi-efficient.