And what kind of experience you've had? Do you buy options to hedge? to speculate? More success in Calls or Puts? Any experience with currency options or commodities plays or do you only play equities markets? Looking as some options in the resources sections...specifically mining companies.
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And what kind of experience you've had? Do you buy options to hedge? to speculate? More success in Calls or Puts? Any experience with currency options or commodities plays or do you only play equities markets? Looking as some options in the resources sections...specifically mining companies.
Looking at mining options in general...wondering if any guys at Covers have played the options market and what kind of experiences good or bad they went through.ie. made money, lost money, hit big.Did they Covered Stock playswith options! Did the commissions eat away at your profit?. Read a few years back that most players(over 80%) lost at commodities trades because of transactional costs of doing trades.
Looking at mining options in general...wondering if any guys at Covers have played the options market and what kind of experiences good or bad they went through.ie. made money, lost money, hit big.Did they Covered Stock playswith options! Did the commissions eat away at your profit?. Read a few years back that most players(over 80%) lost at commodities trades because of transactional costs of doing trades.
Between the options cost (usually more than stocks) the capital gains etc, most people lose buying options.
One thing I can comment on..when buying options, go IN the money and OUT in time as much as you can. Use smart strategies for profits and losses and be careful.
I am one to speak though..bought DRYS Jan 105s the other day and had over a double into today and pissed it away, now up just a little bit.
Options profits can vanish FAST and losses can mount fast because of the spread and the volitility in the market lately.
That is true..
Between the options cost (usually more than stocks) the capital gains etc, most people lose buying options.
One thing I can comment on..when buying options, go IN the money and OUT in time as much as you can. Use smart strategies for profits and losses and be careful.
I am one to speak though..bought DRYS Jan 105s the other day and had over a double into today and pissed it away, now up just a little bit.
Options profits can vanish FAST and losses can mount fast because of the spread and the volitility in the market lately.
Option are great as insurance actually. If you own a bunch of stock and want to protect it for instance protective put can be great.
A collar can also be a great trade as it is 100% guranteed + money if you own the stock at a lower price than you sell a call and buy a put (usually leaps) where you get a credit from the difference between selling the credit and buying the put. It's a bearish play really because IF THE STOCK PRICE GOES down you sell the put at a higher price than what you bought it for and then buy back the call at a lower price exiting the collar. Then you have the stock again to do another collar and get ANOTHER CREDIT or just sit long on the stock and wait for it to go up a little and then do a collar. Either way there is no way to lose in a collar if it goes off at a credit! Very safe but you need alot of stock to make a good amount of money off it. Ted Turner made $100,000,000 like this some years back by the way.
I'm actually examining some spreads now myself!
Option are great as insurance actually. If you own a bunch of stock and want to protect it for instance protective put can be great.
A collar can also be a great trade as it is 100% guranteed + money if you own the stock at a lower price than you sell a call and buy a put (usually leaps) where you get a credit from the difference between selling the credit and buying the put. It's a bearish play really because IF THE STOCK PRICE GOES down you sell the put at a higher price than what you bought it for and then buy back the call at a lower price exiting the collar. Then you have the stock again to do another collar and get ANOTHER CREDIT or just sit long on the stock and wait for it to go up a little and then do a collar. Either way there is no way to lose in a collar if it goes off at a credit! Very safe but you need alot of stock to make a good amount of money off it. Ted Turner made $100,000,000 like this some years back by the way.
Looking as some options in the resources sections...specifically mining companies.
Then Ted gave it to Hanoi Jane.
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