The entire market is gambling unless you have insider info. It doesn't care what you feel or your vision, a lower guidance or earnings miss and you're down the initial investment or even. Penny stocks are more manipulated and much riskier plays than large caps, I recommend options in scenarios over investing. See how it goes both ways.
Long story short, 1 option contract = the right to buy 100 shares of a stock/future. You don't have to execute or buy the 100 shares if you don't want and that's where it gets its name. Most popular transactions are buying calls and puts. Calls = the same as buying low to selling high, puts = the stock will fall.
You can buy options that expire Friday of the current week, next month, next year etc. You can move the contract for profit before it expires or execute the 100 share order when it expires. Only time you lose money on an expiry is if the value of the contract can't be hit before it expires. The main goal for most is to move the contract before expiry for profits.
So basically, the same fundamentals in investing applies to options. Only difference is options are best for short term moves or big swings over a longer period in time, investments you can sit on without a time limit.
I prefer it since I can sell it when I want and if I like the set up, I'll buy into it again. I'll already have profited x times more off calls and puts in the same window than if I just sat on it.
Long story short, 1 option contract = the right to buy 100 shares of a stock/future. You don't have to execute or buy the 100 shares if you don't want and that's where it gets its name. Most popular transactions are buying calls and puts. Calls = the same as buying low to selling high, puts = the stock will fall.
You can buy options that expire Friday of the current week, next month, next year etc. You can move the contract for profit before it expires or execute the 100 share order when it expires. Only time you lose money on an expiry is if the value of the contract can't be hit before it expires. The main goal for most is to move the contract before expiry for profits.
So basically, the same fundamentals in investing applies to options. Only difference is options are best for short term moves or big swings over a longer period in time, investments you can sit on without a time limit.
I prefer it since I can sell it when I want and if I like the set up, I'll buy into it again. I'll already have profited x times more off calls and puts in the same window than if I just sat on it.
