Can someone here use Ga. redneck lingo to explain options trading to me?

[Gunny Jake]

Some stocks don’t sell shares every day. You can buy the option to buy the stock whenever it’s available. You have to make the move to use the option before the expiration date. Options are comparable to earnest money put up for real estate. If we put up earnest money towards a property and never take the next step toward buying the property, the earnest period expires. We lose our earnest money. The realtor gets drunk in Vegas and calls to report what that earnest money is funding. I digress. As soon as you use your option and buy that share of stock you own it, no expiration date. We hope this helps.

 

[ole ed]

So Amos gets what he's promised and Judd only make a few bucks because the milk he had to buy costs less than the milk he owed?

You got it.

 

[Patronus]

Tradin what you ain't got cuz you think you can get it better.

 

[GlockIssue]

See also: gambling.

It's only gambling if you use it as gambling. I use a LOT of options and use them heavily as hedges. It's been an absolutely wonderful system for me. And yes, I'm consistently profitable. Even being patient during the horrific COVID crash in the market.

 

[GlockIssue]

Opshuns is iffy horse**** agreemunts to get suckers of agreemunt to buy or sell stock at price favorable to big money broker Opshun buyer bends over to a premium by seller for the fun Opshun seller bends over even more. Just bend over cuz here it come from hedge fun agin

Well this is one way to look at it

 

[araomd]

If you answer "Yes" to the following questions, you should trade options.

1. Do you like to lose money?
2. Do you enjoy making trades with sophisticated counterparties who mumble Black-Scholes in their sleep?
3. Do you like to use leverage?
4. Do you think you can out-price the RennTech options models programmed by Physics PhD's from MIT and CalTech?

 

[GlockIssue]

Ok so I think I understand now. What you’re saying is that I need to stick with mutual funds.

Oh man...ETF's. Mutual funds have too high of expense ratios. And ETF's can be traded freely like a stock. I'm not suggesting you trade. I'm just saying that ETF's are WAY better than MF's and they are portfolios one and the same. Stick with ETF's.

 

[GlockIssue]

All, options are not the devil that a lot of people think they are. Yes, if you don't understand them and don't know what you're doing, try to gamble them, or heavily over-leverage yourself, they can drain your account faster than you can blink. This is the case with any leveraged financial product. When I first started trading options I didn't know what I was doing. But I was too impatient, thought I could do it anyway, and I paid a little for that. But like most other things in life, if you take the time to learn, you can actually hold your own. And in fact, I've used them as hedges to reduce risk on a lot of my stock investments. Yes, options can actually make your buy-and-hold investments a little less risky (and limit upside, as well). Options can be your friend if you're willing to put the time into it.

 

[Nuke And Juke]

I went to school in Baldwin County. College, too. Use small words please.

I will try...When you shoot craps at a craps table...there is always an a$$hole putting down a bet "Dont Pass." That guy is the short seller. He gets paid when you lose. When you get paid, he loses.