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Old 12-05-2020, 01:40 PM  
InfoGuy
80/20 Rule
 
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Join Date: Apr 2010
Location: Los Angeles
Posts: 3,051
Quote:
Originally Posted by NALEM View Post
I am absolutely new to options. While I am still ahead money wise on the few options I exercised, I feel that I could be making smarter decisions.
First of all, options are not "investing". That shows how little you know about them.

People who trade options are either market makers, people looking to hedge and offset risk in their portfolios or people speculating in the underlying securities. Rookies like you may do well in a bull market, but you will get slaughtered when the tide eventually turns. The smart decision for you would be to stay out of the options market. Quit while you're ahead.

Options volume has increased ~50% Y/Y at the CBOE, ICE and NASDAQ, indicating there are a lot of noobs like you speculating in options. History has shown that when the common folks think that it is easy to double their money in a year, the bull market is usually towards the end.
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