Options / Futures Trading

[Gusto]

I was wondering if anyone here trades options? I am currently opening a US account that will also allow trading in options. I notice the #momentumtrader channel trade options on a regular basis.

Can anyone recommnend a good resource for getting into US options and the risks/reward aspects please.

I'm hoping to have my account ready for when the nas hits 2500, then I'm loading up.

Another option is an electronic nasdaq mini futures account....$6400 per contract (that may be lower now) but $20 per point nas moves.....massive gearing (100%profit/loss with 300 point move) with big reward if you can get in on a dip.

Food for thought.

Gusto

p.s I know this is about as risky as you can get on the investment scale, but it doesn't hurt to get better informed.

 

[Uncle]

Before you trade options I suggest you familiarise yourself before you even put your toe in the water. It can be a dangerous place - lot of alligators in there!!! Most people who make money do so by SELLING options against stock they own, which can give you extra profits, or use options as a hedge against your existing stock.

Two good books I can recommend:

"Traded Options - A private Investors Guide" by Peter Temple, Published by LIFFE

"The Way to Trade" by John Piper, Published by FT Pitman Publishing

Best wishes

John

 

[Gusto]

Thanks John

I'm opening a US trading account and will addt ehoption for option trading. I've read a bit about them since. I iwsh I'd thoughtof it earlier...to buy some puts on some tech stocks b4 they crashed again! I would not write options that were uncovered, no way!

Do u use options at all?

Cheers

 

[Uncle]

Gusto.... no I havent traded options since last December, when all the volatility was in tech stocks and you will be aware there is a restricted list of stocks in which you can trade in the uk, and as i dont trade US, I thought i would opt out whilst i was doing well enough out of the Tech market, and havent seen any reason to trade since, in fact, hardly traded much at all since mid August.

Sorry for the delayed reply, but only just seen your response.

Good luck to you

John