I need a push to start options

yakatan

yakatan

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I want to start with covered calls using Autonomy shares I own that are just sitting there not doing much (not sure if there are options in Autonomy) . Is this a good way to start? .

Can anyone make any suggestions for a beginner to options.
 
I think that is an excellent way to start. However, I would do yourself a favor and go to the CBOE Option institute website and watch the covered call seminars. They are free and would help. When you put on the trade, think about what kind of return you are looking to get. That will help you start.

Mark
Option 911 Blog
 
yakatan said:
I want to start with covered calls using Autonomy shares I own that are just sitting there not doing much (not sure if there are options in Autonomy) . Is this a good way to start? .

Can anyone make any suggestions for a beginner to options.
Click to expand...
Yeah. If you're bored with the stock, sell it.

Being bored with moribund stock (when did you buy it by the way as it's shown a clean pair of heels during this week) is NO reason to ‘get into options'.

Options are a game in their own right and deserve at least as much study and research as trading stocks.

There’s a lot to be said for maintaining a haughty disregard for all but your own ‘core business’.
 
TheBramble,

I think you misunderstood me.
I don't want to get into options because I am bored of the stock. I want to use it as a starting point for trading options. I find them very interesting at least in theory, as I read about them, and want to see what it is like in practice.

I bought it in 2000.
 
You bought in 2000!!!

You’ve been sitting on a stock that’s died a death for 9 years!!!

A stock that’s even now, nowhere near half its 2000 value – and you’ve just sat there and watched it?

Buddy, you ain’t built for options – trust me.
 
TheBramble said:
You bought in 2000!!!

You’ve been sitting on a stock that’s died a death for 9 years!!!

A stock that’s even now, nowhere near half its 2000 value – and you’ve just sat there and watched it?

Buddy, you ain’t built for options – trust me.
Click to expand...

You are making too many assumptions.
 
yakatan said:
I want to start with covered calls using Autonomy shares I own that are just sitting there not doing much (not sure if there are options in Autonomy) . Is this a good way to start? .

Can anyone make any suggestions for a beginner to options.
Click to expand...

Yes, don't even consider options, they'll take you to the cleaners if only on the bid offer spread. Plus, if you don't know what volatility is in regards to options and I mean REALLY understant it, again don't even go near options.

Don't think I'm being rude but options are incredibly complex tools and so people should not head into that market ill-prepared.

Good luck anyway.
 
Why is everyone being so negative? You have to start somewhere.
I know options are more complicated than equities but that is no reason to stay out of them.

I've asked for advice on the best way to start not how to stay out of options.
 
You've been given the very best advice beased on the information you 've provided. It's not negative - it just wasn't what you wanted to hear.
 
TheBramble said:
You've been given the very best advice beased on the information you 've provided. It's not negative - it just wasn't what you wanted to hear.
Click to expand...

So what you are saying is, if someone says to you, I want to start options using covered calls, your immediate reaction is, you will be rubbish at it stay out of options.

Mr Bramble, what exactly do you want to here from a beginner to say, yeah go for it?
 
Look at post number 1.

Your basis for wanting to use options is flawed. It wasn't a general question from a newbie asking about options. It was a quite specific proposal to which you have received a response.

Subsequent information from you indicates an approach to trading that does not sit well with that required for handling options. Or even stocks to be fair.

I personally don't want to hear anything. You asked a question. I did my best to answer it. I wasn't what you wanted to hear.

I'll leave others to continue the discussion with you.
 
Yakatan,

I think the point everyone is trying to make is make sure you take the time to learn. Teach yourself options the right way and then maybe try.....SMALL. Anyway, if you have the will, you can definatly learn this business so go and teach yourself.

Mark
Option 911 Blog
 
option911 said:
Yakatan,

I think the point everyone is trying to make is make sure you take the time to learn. Teach yourself options the right way and then maybe try.....SMALL. Anyway, if you have the will, you can definatly learn this business so go and teach yourself.

Mark
Option 911 Blog
Click to expand...

Thanks Mark,

I absolutely intent to start small. I've bought a couple of beginner books and once I've read them would like to trade small then move on to books that teach more indepth especially volatility.
 
In which case, can I recoomend the following:_

The Options Edge - Gallacher
Option Volatilty and Pricing - Natenberg
Intermarket Technical Analysis - Murphy

Avoid Hull at all costs...
 
TheBramble said:
In which case, can I recoomend the following:_

The Options Edge - Gallacher
Option Volatilty and Pricing - Natenberg
Intermarket Technical Analysis - Murphy

Avoid Hull at all costs...
Click to expand...

Natenberg is a good book I'll be buying, and Simon Vine I like too.

The Murphy book - is there effective practical advice in it or does it just explain how one asset class affects another? stocks up/ bonds down; dollar up/gold down.

You said spreads will kill me can you give me an idea of a typical spread on an option.
IF there is liquidity should the spreads not be tight?
 
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