Options

[MikeW]

Options Info Request

1. Does anyone know any sites that have an Options demo-account to try out? - preferably with an options/spread calculator.

2. Do many people trade options for risk reduction/quantified loss situations? Is this entry route any less risky than using SB with sensible stops?

3. Anyone used the various options spread strategies coupled with money management/profit maximisation (Jones/The Trading Game book)?

Rgds to all.
Mike

 

[stevespray]

Afternoon Mike, I've been studying Options for the last 6 months now. In the last couple of months I've begun actually placing trades. So far so good - a few nice profits coupled with some very minor losses. All the trades have been through a spreadbet Co.
When you mention a SB in your message are you refuring to an Options SB or are you talking about a SB relating to the movement of the stock in the real cash market ?
The beauty with Options is that you can have a position in the market that makes money if the market doesnt move too much. Obviously a SB linked to the underlying market requires the stock to move in order to make or loss money.

Steve.

 

[MikeW]

Hi Steve,

Re SB in message I was trying to compare riskiness of using SB for shares albeit with stops as against defined limited risk (profits) of option spreads.

Which spreadbet co do you use? Capital Spreads I believe don't do them.

I didn't notice the other options thread before I started this, it looks to have interesting info - I've scanned quickly & I'll also read through it tonight properly.

Rgds.
Mike

 

[stevespray]

IG Index appear to offer some reasonably priced Options on a few indecies. Thats what I have been testing them on. City Index also offer them. It's alway worth comparing prices between companies on this sort of thing as prices can vary a surprising amount.

Steve.

 

[MikeW]

Cheers Steve,

I'll have a look.

Some great links/info from RogerM in the other options threads which I've now read through - although some I've going to have to reread! The link to the 21st century options course looks well worth doing -I'll start this weekend.

Good trading.
Mike

 

[volatileN]

Steve, what software are you using?

Thanks,

VN

 

[stevespray]

For what ?

 

[volatileN]

For your options analysis