Options Trading

May 2, 2010
16
0
11
#1
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:

anley

Well-known member
Dec 16, 2003
2,730
229
73
#2
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 :)
 
May 2, 2010
16
0
11
#3
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.
 

GTS

Member
Jun 1, 2010
39
0
16
#6
What amazing about BP is it now has weekly options available, this is one widely held stock.
 

GTS

Member
Jun 1, 2010
39
0
16
#10
They should be traded everywhere. I look at them on Think or Swim. What has been the challenge, are you short this rally?
 
Sep 20, 2010
11
0
11
#14
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.