Options Trading

This is a discussion on Options Trading within the Futures & Options forums, part of the Markets category; What is a good options broker for a UK resident to trade at? I have a fairly low budget of ...

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Old Jun 26, 2010, 4:52pm   #1
Joined May 2010
Options Trading

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.

Last edited by sebastionay; Jun 26, 2010 at 10:01pm.
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Old Jun 27, 2010, 12:59pm   #2
Joined Dec 2003
Re: Options Trading

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
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Old Jun 27, 2010, 2:00pm   #3
Joined May 2010
Re: Options Trading

sebastionay started this thread
Quote:
Originally Posted by anley View Post
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.
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Old Jun 27, 2010, 3:47pm   #4
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Re: Options Trading

Nope, nothing much to do with time decay.
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Old Jun 27, 2010, 4:24pm   #5
Joined May 2010
Re: Options Trading

sebastionay started this thread
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Originally Posted by anley View Post
Nope, nothing much to do with time decay.
And volatility ofcourse.
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Old Jul 2, 2010, 5:41am   #6
GTS
Joined Jun 2010
Re: Options Trading

What amazing about BP is it now has weekly options available, this is one widely held stock.
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Old Aug 3, 2010, 4:42pm   #7
 
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Re: Options Trading

Quote:
Originally Posted by GTS View Post
What amazing about BP is it now has weekly options available, this is one widely held stock.
Is anyone trading BP options (Calls/Puts)???
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Old Aug 5, 2010, 12:09am   #8
GTS
Joined Jun 2010
Re: Options Trading

No, but trading weekies on the OEX and ES. Volume is growing.
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Old Aug 8, 2010, 8:12pm   #9
Joined Nov 2008
Re: Options Trading

I'm trading BP but it hasn't been a happy experience....... Where are the weekly options traded?
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Old Aug 9, 2010, 5:31pm   #10
GTS
Joined Jun 2010
Re: Options Trading

They should be traded everywhere. I look at them on Think or Swim. What has been the challenge, are you short this rally?
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Old Aug 13, 2010, 4:35am   #11
 
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Re: Options Trading

I just wrote a piece on the weeklies I think you might find interesting GTS. Best I can figure they are not worth it.
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Old Aug 19, 2010, 9:31am   #12
GTS
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Re: Options Trading

where is the piece?
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Old Sep 19, 2010, 8:19am   #13
GTS
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Re: Options Trading

Quote:
Originally Posted by fxaggregation View Post
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?
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Old Sep 28, 2010, 6:36am   #14
Joined Sep 2010
Re: Options Trading

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.
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Old Sep 28, 2010, 6:37am   #15
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Re: Options Trading

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