Read on Twitter
In defense of options. A 
.
I’ve gotten a lot of questions lately about options. They have a bad reputation.
But options aren’t just about YOLOing your life savings into $TSLA, $PLTR, and $NIO calls.
. I’ve gotten a lot of questions lately about options. They have a bad reputation.
But options aren’t just about YOLOing your life savings into $TSLA, $PLTR, and $NIO calls.
Options are just a tool. They’re as safe or as risky as you make them.
You can use options to:
-hedge
-purchase stocks at a lower cost basis
-profit off stocks moving sideways
-increase exposure to cores
-test potential longs
-capture premium
-profit off undervalued stocks
You can use options to:
-hedge
-purchase stocks at a lower cost basis
-profit off stocks moving sideways
-increase exposure to cores
-test potential longs
-capture premium
-profit off undervalued stocks
If you just started in the stock market, stick with common stock for at least 2 or 3 years.
But for a more experienced investor, they can be a wonderful tool. You should at least learn more so you know the possibilities.
But for a more experienced investor, they can be a wonderful tool. You should at least learn more so you know the possibilities.
To learn more, I recommend The Rookie’s Guide to Options by Mark D. Wolfinger.
There are more complicated books, but this has everything you need to get started.
If you want to learn more now, here’s a good overview from Investopedia. https://www.investopedia.com/options-basics-tutorial-4583012
There are more complicated books, but this has everything you need to get started.
If you want to learn more now, here’s a good overview from Investopedia. https://www.investopedia.com/options-basics-tutorial-4583012
@caleb_investTML Here is my defense of options.
Probably nothing you haven’t seen today, but I wanted to put it out there.
They have a very bad reputation. Not all of it is deserved.
Probably nothing you haven’t seen today, but I wanted to put it out there.
They have a very bad reputation. Not all of it is deserved.
