Coincidentally, in 1995, I trolled the pages of the ancient magazine Exchange and March and learned the options at the end of my life. A full-page article showed how traders can work at home (actually in bed) using prices from the BBC’s teletext. day. Much has changed, but the options have been available for dating shares for centuries, used to price ships’ cargo. In the 1980s, options were traded on the stock exchange and fortunes were acquired. Warren Buffett, an option trader, was Nassim Taleb, who worked the most. They are not stupid, and you have read so far, and neither are you.
Investment is the word we use for a wrong trade! The investment is mostly passive and requires you to be right for decades and / or move away from your stock. As markets reach new heights and valuations drag on, you need to understand that the stock market cannot continue to rise. If you’re happy with the small dividends and you’re sure that your shares will be half their present value at some point in the future, don’t read on. QE is no longer on the table, and that’s what separates stocks from real valuations.
What are the options? We only trade FTSE100 options in the world. Why? Because all of the indexes are fraudulent / sexual assault / counterfeit accounting / toxic products, and all other mammals that can destroy a firm’s heartbeat are less likely to be arrested. Thus, the FTSE is the basis of our derivatives. The options are the right to buy or sell the bases (valued at £ 10 per settlement point by the exchange), but NOT an obligation. At the same time as insurance companies collect premiums, options can be sold. Have you ever seen a poor insurance company? When understood correctly, sales options can bring you a steady monthly income stream of 2% per month. Nothing else is approaching.
But if everyone sells them, who are the buyers of the options? This is the biggest part of my education and the reason I have been trading for profit since 1999. Yes, I had failures and panics, but I made a good profit in February when the market fell a little weak, even though it was 10%! I learned a lot about options from an expensive course and free training on the internet. I met a like-minded option trader a while ago, and every week the website I contribute to struggles with a real trade and a common title related to our world. You completely lose your mind when you start to understand the options and endless combinations and the 20 or more strategies we use. I love option trading and I want to reach those who want to make a profit and have a reasonable approach to risk management, but do not know where to start. We are not just for beginners, there is an idea for everyone. And we do not ask for your money.