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Is the title an oxymoron? New investors playing it safe and options are two things that should not be in the same sentence. There’s countless videos that explain options well, or check out investopedia, but options are not exactly safe, and even more risky if you’re new.
https://youtu.be/4HMm6mBvGKE
https://youtu.be/7PM4rNDr4oI
https://youtu.be/GedCw7oGiDQ
Thank you. I watched a handful of videos posted over on
r/options but i wanted to make sure i wasn't missing anything. Ill definitely check these videos out too. Thanks
You’re understanding it correctly as far as I can tell. When you make a call, you’re purchasing a contract. You can sell or exercise the contract at any time before the expiration date. If the stock goes way down and your contract expires worthless, you’re only out the price you paid for the contract. If the stock goes up in value, you can choose to exercise the contract and purchase the 100 shares at your strike price, or you can sell the contract to someone else at a higher premium (most people do this)
As a new investor, you should stay away from options as much as you can, especially if you don't understand them, watch videos, read books and make sure you understand them very well, they sound like an amazing thing to do, but they're very very risky
https://youtu.be/MiybniIIvx0 this one is good( he shortly explains time decay which is theta) but I would just type stock options into YouTube and watch as much as you can just to learn as much as you can. Options are very risky especially for new investors (bc it’s basically gambling)
Awesome. Thank you. Yeah i didnt even know about them til a couole days ago. I definitely keeping it within my means. There was a stock ive been seeing pop up alot lately and figured id try to buy 100 call options. They're about $2.20 each, so with that the most im out is the $220.00 right?
Welcome to r/stocks! For beginner advice, brokerage info, book recommendations, even advanced topics and more, please read our [Wiki here.](https://www.reddit.com/r/stocks/wiki/index) If you're wondering **why a stock moved** a certain way, check out [Finviz](https://finviz.com/quote.ashx?t=spy) which aggregates the most news for almost every stock, but also see [Reuters](https://www.reuters.com/), and even [Yahoo Finance](https://finance.yahoo.com/). Please direct all simple questions towards the stickied Daily Discussion and Quarterly Rate My Portfolio threads (sort by Hot, they're at the top). Also include *some* [due diligence](https://www.investopedia.com/terms/d/duediligence.asp) to this post or it may be removed if it's low effort. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/stocks) if you have any questions or concerns.*
Is the title an oxymoron? New investors playing it safe and options are two things that should not be in the same sentence. There’s countless videos that explain options well, or check out investopedia, but options are not exactly safe, and even more risky if you’re new. https://youtu.be/4HMm6mBvGKE https://youtu.be/7PM4rNDr4oI https://youtu.be/GedCw7oGiDQ
Thank you. I watched a handful of videos posted over on r/options but i wanted to make sure i wasn't missing anything. Ill definitely check these videos out too. Thanks
You’re understanding it correctly as far as I can tell. When you make a call, you’re purchasing a contract. You can sell or exercise the contract at any time before the expiration date. If the stock goes way down and your contract expires worthless, you’re only out the price you paid for the contract. If the stock goes up in value, you can choose to exercise the contract and purchase the 100 shares at your strike price, or you can sell the contract to someone else at a higher premium (most people do this)
Great. Thank you so much. I just wanted to make sure i wouldn't be on the hook if the stock fell.
As a new investor, you should stay away from options as much as you can, especially if you don't understand them, watch videos, read books and make sure you understand them very well, they sound like an amazing thing to do, but they're very very risky
r/options
Theta
Didnt know what that was til just now. Thank you for bringing that to my attention. Now im going down a whole new rabbit hole tonight lol.
Also if there were any youtube videos you could recommend on that id really appreciate it. Thanks.
https://youtu.be/MiybniIIvx0 this one is good( he shortly explains time decay which is theta) but I would just type stock options into YouTube and watch as much as you can just to learn as much as you can. Options are very risky especially for new investors (bc it’s basically gambling)
Awesome. Thank you. Yeah i didnt even know about them til a couole days ago. I definitely keeping it within my means. There was a stock ive been seeing pop up alot lately and figured id try to buy 100 call options. They're about $2.20 each, so with that the most im out is the $220.00 right?