Call Options Guide Author
I am just your average middle class worker that has an ability for math and a love of making money.
I started trading stocks while I was in high school and spent a few weekends each year at the library with my father reading stock reports. When I went off to college I received a scholarship, so the money that I had saved up for college I was able to invest while I was a college. After graduating from college I tried a few jobs in the accounting and finance sectors. I have now been trading stocks for over 30 years and calls and puts for 25 years.
When people ask me what I do for a living I tell them about my job, but when people ask me about my hobbies and what I enjoy doing I tell them about my trading in the stock and options markets.
I have talked to soooo many people over the years, both friends and strangers, about trading calls and puts that I thought I would write all of my "lessons" so I can start directing people here.
I am not a professional, nor am I licensed, but I do have experience trading calls and puts that I want to share.
Remember, a stock price can move in 3 directions:
- it can go up,
- it can go down,
- and it can stay the same.
My recommendation to anyone that is starting to trade options is to limit yourself to a few stocks that you know. I have about 30 stocks that I follow on nearly an everyday basis. I read the news on these stocks weekly and I have a "gut feel" for the movement of these stocks. I also watch the charts to look for short term prices that seem either too low (so I buy a call) or seem too high (so I buy a put). When you first start trading, always calculate your breakeven point and if you have a profit--take it. There is no doubt that a bird in the hand is worth 2 in the bush any day!
This website is called call-options.com but don't limit yourself to buying calls and don't be afraid to buy puts. They work exactly the same as calls. Also, don't just buy something to say that you bought a call--you will lose money. You have to have a reason for expecting the price movement and you must have an expectation of your exit strategy.
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