re: Visa getting roughed up today?

Is there an "Options Trading for Dummies" available?

Something that doesn't assume you already speak the lingo.

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Is there an "Options Trading for Dummies" available?

Something that doesn't assume you already speak the lingo.

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investopedia.com has a few basic articles - they eventually start to talk in circles, but it got me from 0 to about 1, relatively speaking. My brokerage has a profit/loss analyzer for every kind of option imaginable.

My problem is valuing stock in the future - I'm not really confident in my ability to do that yet. TBF is correct that, if you're willing to buy the stock at the strike price, you might as well write put contracts and pocket the commission - that's a "can't lose" move if you're both bullish on the stock and want to be long in it.

However, if you're not quite as liquid, you're going to reduce your profit by getting in and out of stocks, and you'll probably have to start chaining options to limit your ultimate risk (which can start to amp up with a volatile stock or sudden shift in the market.)

Ace, I buy what I like at a price that I don't mind holding if i should get "put" the shares. For phillip morris anything under $92, for Visa anything under $190. Well it was $197 last week so to be able to sell a put and grab it at $178.95 next friday or collect $605 per contract is enticing either way.

What I mean is, I wouldn't even be buying it for $185 bc with a $6.05 premium per share I'd keep Im buying a company I love for $178.95 when looking at it's forward earnings, recent earnings report I don't mind paying $190 bc VISA themselves announced a buyback while the shares were at $190. At $6.05/share I'm literally earnings a 3% dividend in a sense....in 7 days! WOW......but like I said I imagine the average retail investor is on the sidelines due to lack of knowledge and the lack of ability to trade 100 shares at a time.

I literally asked a question on here, got some decent help but googled and googled, then messaged a friend of mine and once I got my head wrapped around the concept its been full speed ahead. You won't believe the returns I'd post it, but nobody would believe me unless they've done it before.

I also learned through trial and error that although the puts a year and half out in 2015 give a nice ROI like 20% year over year the weekly puts are bonkers like 1-3% a week depending on how risky you wanna be but the best part is time decay is on your side like selling a put today, if the share is the same price monday and it expires friday, you get time working for you on saturday and sunday while the market is closed so even if the share price doesn't move, monday morning your put will be worth more.

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selling a put today

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There's no question I'll be selling puts on Friday. I think it is reasonable to pick a stock that's flat or slightly rising - go with the options you're willing to take the shares, if necessary, at the discounted price (worst case) and when you hit your target %, go ahead and close it early.

THAT much I've got - that takes the risk down to as literally as low as you can go. It's just problematic to find one to play every week (and maybe that's too optimistic) and stay liquid enough to absorb the occasional loss.

You don't have to sell on Friday just giving an example of time decay, you sell them on a down day, I sold some visa ones at $185 for next week while at $175 yesterday, they were $11.80 and I closed them this morning under $6 for $6/share profit

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I sold some visa ones at $185 for next week while at $175 yesterday, they were $11.80 and I closed them this morning under $6 for $5/share profit

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The $190s are going for about that now.

congrats to all who bought last week $185 almost!

in at 177 as well. thinking of adding on. i'm long anyway.

Just got this alert in my email, seems a few analysts have a price target well over $205-225 for a 15% or so upside from here

LINK