BB's Stock Haven

[IRISHBULL]

re: Options.........

Check ibox on these boards
http://investorshub.advfn.com/boards/board.aspx?board_id=11669
http://investorshub.advfn.com/boards/board.aspx?board_id=5176

Good site to get started http://www.investopedia.com/university/options

Here's an idea of what you're looking at when buying an option. You should use play money to trade at first to see how the option reacts on time and movement of the underlying stock. Also, you will notice some options have high premiums ie: stock ABC is 100 dollars, the Nov 120 calls are $6.00 - Sock DFG is also 100 a share but the Nov 120 call options are only $2.50 per contract (One options contract represents one hundred shares in the underlying stock. The quoted price of an option is per share.) There can be many reasons for this, one reason is earnings, if the earning are supposed to be bad or good and there is an anticipation of the stock making a big move one way or the other you will see high premiums. What can happen in this case is the option may not be worth much the next day. I bought puts one on NFLX about 25 dollars out of the money, the stock dropped about 18 bucks the next day and my put options were in the red, yeah, I was pissed but it was a learning curve.. There is so much more, start reading up on it and follow those option boards to see what other traders are doing and how the trades work out, good luck!

Select option:


Hit buy:


What the order looks like: