Quote from tneub:
Hello...It would be of great help if you went to the CBOE website...and went thru their tutorial....I really don't understand your question...but what i do understand is.... that you don't understand that much.....and that's ok...im not trying to be a hot shot.....trying to help....
You can buy all of the calls and puts you want in a cash account or as much as your broker will let you buy on margin....and you can sell them whenever you wish...without ever having to own any stock..period...owning stock....selling stock short...used in conjuction with options generally are more sophisticated strategies....involved in hedging positions and risk....
i suggest reading up.....or if your into taking shots or gambling....go buy yourself some calls....but don't buy front month calls out of the money trading at .05 cents just cause you think they are cheap and you have discovered a bargain.....learn how options behave....and study the option greeks....they will help you understand options a bit better....start with an options Delta....and move on from there....and read, read, and read.....and paper trade for a while to see how they behave with the moves in the underlying.....good luck
PS....options can be really dangerous if you don't know how to use them.....when i first started....i bought way too many contracts for my account size.....i started with 50-100 contracts....and it was F##ing brutal.....i mean one tick and i was down like 250-500.....and these things move alot of ticks and fast sometimes....depending on the VOL of the stock....luckily i made a series of good trades.....but then i went short the DOW in febuary of 07.....with 100 contracts....not a good idea....i was getting smashed up.....and then we had a sell off one day....and i lucked out....and got the hell out....vowed i would reduce my position size.....i mean you can do some damage with 1-5 contracts....and if they had 1/4 or 1/8 contracts....i say start with those....but youll do you yourself a huge favor if you start with one....and work from there....good luck...
