Showing posts with the label options-trading-for-beginners

Long-Term Options- Introduction

Long-Term Options Introduction Instead, the purpose of this is to highlight the fact that option  premiums in general do not reflect the expected long-term growth rate of the underlying  equities and to explain an investment strategy that can be used to take maximum  advantage of this phenomenon.  As I mentioned before, my own interest in this subject stems from the fact that I could no  longer contribute additional funds to my retirement plan. As a long-term investor in the  market, I had assembled a stock portfolio over many years, and I simply did not wish to  raise cash by selling any of my winners. My few losers and laggards had long since been  disposed of and the proceeds used to buy more shares of my better-performing stocks.  I'm not a short-term, in-and-out investor, but I wanted to keep buying. Options seemed the way to go, but as with stocks, purchasing calls requires money.  What's more, options can only be paid for in cash, so going on margin and


THE OPTIONS COURSE Final  Summary It has avoided trying to forecast market direction or  analyzing charts with detailed market patterns, and has not refer enced highly technical data or difficult-to-interpret fundamental informa tion. Although these trading tools may have their place in your trading  arsenal, they are exhaustively studied in many other publications. The pur pose of this book is to focus on options trading strategies and to demon strate how professionals trade without overanalyzing the markets. When  traders get bogged down in trying to process too much information, the re sult is what I often call “analysis paralysis.” Learning to trade can be quite difficult and perplexing.  Each strategy has an infinite number of possibilities when applied to the  markets. Each trade is unique, and your task as a trader is to learn from  your achievements and your mistakes. There are no absolutes in trading.  However, I do believe that you will be able to build