learning about options

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guaranteed to make money

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options

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am I missing something

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Yes

now that I'm thinking about it and reading, I'm guessing if everyone knows the market is volatile then that will be built into the price.

sorry bad terminology, if the market knows that that stock is highly volatile then it will be built into the price.

Based on this thread and your 401k thread I'm thinking you might want to slow down a little before the big boys take all your money.

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So it just occurred to me that in a market of high volatility that if I purchase the underlying stock and a put option then I'm almost guaranteed to make money. If the market is indeed volatile.

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Thats called a protective put, it will cap your downside but thats about it.


Now if you want to merely sell options and sell both sides then you can make money as you're basically selling insurance. As long as you manage your risk you can make a decent return if you have the capital....and the time.

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Or am I missing something.

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Apparently incredibly basic knowledge of investing in equities and risk management


Volatility is pretty much the sole driver behind option pricing

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Now if you want to merely sell options and sell both sides then you can make money as you're basically selling insurance. As long as you manage your risk you can make a decent return if you have the capital....and the time.

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What he said.

I am just getting into investing and there is one thing I have learned so far... everything looks easy when you are Monday morning quarterbacking.

Not so when doing it in real time.

I made a paper trade on GE, If gets above 16$ before middle of June I will be correct.

How do you find your hot stocks? like filter and find and analyze.

Start with Investopedia, then progress to paper trading from there.

You should post this on r/wallstreetbets