I am making this initial post to be directed to those in the beginning or early stages of trading options. As you learn about the basic four instruments (buying a call, selling a call, buying a put and selling a put), you will find that most training courses focus upon the mechanics of the trades.
What I have found is that in addition to the mechanics, you will need to know and understand the "personalities" of each instrument. What I am referring to are things like "How do each make (or lose) you money?"; "How do they respond to outside influences?"; "How to they play with others (spreads)?".
I believe the intent of this blog is to allow questions. Feel free to do so.
Thursday, December 11, 2008
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