I learned the options late in life, accidentally dragging the pages of the old Exchange and Mart magazine in 1995. A full-page article showed how an option trader could work from home (actually in bed) using BBC teletext prices, back. day. A lot has changed, but the options have been in stocks for centuries, which are used to price ship loads. In the 1980s, options began to be traded in exchange, and fortunes were made. Warren Buffett is an avid options trader, with Nassim Taleb the most prolific. They’re not fools and neither are you, if you’ve read them so far.
Investing is the word we use for bad business! The investment is mostly passive and requires you to be right and / or keep your shares for decades. With new highs in the markets and extended valuations, you need to realize that the stock market cannot continue to rise. If you are happy with low dividends and are confident that at some point in the future your stock will be worth half what you have today, read on. QE is no longer on the table and that is what separates stocks from realistic valuations.
So what are the options? We only trade FTSE100 options in our world. Why? The full index is unlikely to be arrested for fraud / sexual harassment / false accounting / toxic products and other evils that could destroy a company representative in a heartbeat. So FTSE is the basis on which our derivatives are based. The options below are the right to buy or sell (the exchange price is £ 10 for each point settled) but NOT the obligation. However, as insurance companies collect premiums, options can be sold. Have you ever seen a poor insurance company? When you get it right, the sales opportunities can bring you a comfortable income of 2% per month, consistently. Nothing else comes close.
So what are the options if the buyer sells them all? Well, that’s the bulk of education, and that’s the reason I’ve been trading profitably since 1999. I’ve had both failures and horrors – but I made some nice gains in February, while the market was down 10%, even though it was a little dark! I learned about the options from an expensive course and much of my free internet training. I met a similar options trader a while ago, he runs a website that I help every week with a real business and general title about our world. It’s absolutely amazing when you start to understand the endless possibilities and combinations and the 20 or more strategies we use. I love to trade opportunities and I want to reach out to those who are looking for income and a sensible method of risk management, but who don’t know where to start. We’re not just about beginners, there are perspectives for everyone. And … us don’t do it want your money.