Options Trading

[sebastionay]

What is a good options broker for a UK resident to trade at?

I have a fairly low budget of $1k does anyone know a place where you can open an options account that size?

I want to open the account because I would like to make some long plays on BP, I want to do this without a stop loss to reduce my risk and think that options offer me the best deal for this. (please correct me if I'm wrong)

Is it possible to buy 1 year call options on BP? Is it comparably cheaper than spread betting BP?

Regards Seb.

 

[anley]

I wouldn't get involved in options if I were you unless you have a good grip on option volatility and how it affects the price of all options, often more so than how the underlying moves.

For example, do you understand that it's possible for you to buy a deep out of the money call on BP, the stock then rallies 40% but the option position loses money.

If you don't understand how the above is possible then it's odds on you'll lose money.

Just trying to be helpful so you don't lose money

 

[sebastionay]

I wouldn't get involved in options if I were you unless you have a good grip on option volatility and how it affects the price of all options, often more so than how the underlying moves.

For example, do you understand that it's possible for you to buy a deep out of the money call on BP, the stock then rallies 40% but the option position loses money.

If you don't understand how the above is possible then it's odds on you'll lose money.

Just trying to be helpful so you don't lose money

Thanks for stopping by anley.

My understanding is that this is due to the exponential time decay on expiration which effects pricing.

 

[anley]

Nope, nothing much to do with time decay.

 

[sebastionay]

Nope, nothing much to do with time decay.

And volatility ofcourse.

 

[GTS]

What amazing about BP is it now has weekly options available, this is one widely held stock.

 

[ITJOBSUS]

What amazing about BP is it now has weekly options available, this is one widely held stock.

Is anyone trading BP options (Calls/Puts)???

 

[GTS]

No, but trading weekies on the OEX and ES. Volume is growing.

 

[jontyxxxx]

I'm trading BP but it hasn't been a happy experience....... Where are the weekly options traded?

 

[GTS]

They should be traded everywhere. I look at them on Think or Swim. What has been the challenge, are you short this rally?

 

[option911]

I just wrote a piece on the weeklies I think you might find interesting GTS. Best I can figure they are not worth it.

 

[GTS]

where is the piece?

 

[GTS]

All the options that Option911 said here is worthless, don't need to hear anything , just make what you think you're right.

??? Can you please translate?

 

[Kunal of HSM]

If you have 1k to invest, options is not the way to go. Plus, Anley is right, options are much more complciated than time decay. Market will suck your money faster than a Dyson vaccuum.

 

[Kunal of HSM]

Interesting comments GTS, option 911 - I want to look at weeklies, just to see what they are about.

 

[GTS]

If I only had 1k to trade I would sell flies on the spy, weeklies or monthlies. Let us know your progress Kunal. thanks!!

 

[cameadows]

If you have 1k to invest, options is not the way to go. Plus, Anley is right, options are much more complciated than time decay. Market will suck your money faster than a Dyson vaccuum.

You can trade options with only $1000. I trade Iron Condors in two Roth IRA's this way.

Options are complicated, but not that complicated. What makes it hard is trying to buy long options to make money. Selling Options, and collecting the time decay, is the way to go!

 

[Martinghoul]

Options are complicated, but not that complicated. What makes it hard is trying to buy long options to make money. Selling Options, and collecting the time decay, is the way to go!

This statement alone makes me think it won't end well for you...