Survey Says…

In an effort to learn more about who is reading these pages, I'm requesting that you reply to a few poll questions.

The purpose is to enable me to produce content that is suitable for the majority of readers.  Thus, if you want your 'group' represented, please respond.  The results to date are available.  Poll closes Monday evening.

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Thanks for participating. Good trading.

2 Responses to Survey Says…

  1. Jimmy J. 07/30/2009 at 7:42 PM #

    I am a little confused about the buying and selling of options. They buying part I guess I have down. You say to buy an in the money option about a month out with a relatively low premium. How do I sell the same stock option if I never want to take actual control of the stock?
    Thanks

  2. Mark Wolfinger 07/30/2009 at 8:26 PM #

    Jimmy,
    I assume you have traded stocks. You bought shares and you sold shares.
    Options work the same way. They are traded on options exchanges where there are market makers who continuously make bids (prices they are willing to pay for any option, when someone like you wants to sell) and offers (prices they request others to pay when buying options).
    You bought. You sell in the same way.
    I NEVER EVER suggested that an investor ‘buy an in the money option about a month out with a relatively low premium.’ You must have me confused with someone else. First, I never recommend buying options as a directional play. Second, I have no idea what time period will work best for you. Third, ITM options seldom have a ‘relatively low premium.’
    But, I hope I answered your question to your satisfaction. Thanks.