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My Financial Independence Journey » Options


This page is where I am tracking all of my options activity.  I will update this page as my options holdings change.

7 Responses to "Options"

  1. Martin says:

    Would you consider selling puts & calls rather than buying them? In my opinion with buying you have to be right in direction and time, and if the move of the stock is not large enough (volatility) the time decay will eat up all your gains.

    1. MFIJ says:

      Currently I only sell puts. I’ve thought about selling calls as well, but don’t like the idea of losing my stock. I’m not too interested in buying puts or calls, because like you mentioned, time decay destroys the value of your option.

      Of course if I could conceive of a strategy where buying a put or call would be advantageous, I would do it. But so far, none have arisen.

      1. Martin says:

        Well, I am now confused since your table says “Buy to open”, if you sell puts, which I totally love doing myself, shouldn’t the table say “Sell to Open” and “Buy to Close” though?

        1. MFIJ says:

          Proof that I have not yet achieved apotheosis. Good catch on finding my mistake. I updated the table so hopefully it makes more sense now. Thanks for the help!

  2. Martin says:

    hehe, no worries, but when you get to the nirvana let me know, I want to get there too :)

  3. Jim says:

    I am interested in getting into options, can you recommend any books, dvd’s, educational programs to enlighten myself on options before I make the jump?

    1. MFIJ says:

      Most of the books out there focus on trading options, which is pretty risky. Almost everything I learned was from web sites and blogs. Read as much as you can. If you’re still a little bit shaky, you could try paper trading.

      Only sell puts against stocks that you would like to own at strike prices that you are willing to own them. This removes most of the risk.

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