. Options Trading... An option is a contract to buy or sell a stock or commodity at a specified price at a future date. There are many different types of options, but let's consider the simple option that you buy at todays market price in hopes that the market will go up within the next 30 to 90 days and you can sell you option at a profit because the difference in the price today and the price in 60 days or so. You can either sell the option or you can exercise the option and sell the stock or commodity at the market price and your profit is the difference in the price of the stock when you bought it and the market price now less what you paid for the option and the commissions to your broker.   The options game is a great one that many people play but few succeed in since fully 95% all options expire without any value. Options also have different quoted values and some of the expertise involved in option investing is to find the 'cheap' options with the most opportunity to increase in value. Sometimes an option can be almost a sure bet except that if all the other folks think so too... the price will be so expensive that no one can afford the price in the hopes of the change in value since even if the price changed as we all seem to think... there would be no profit. Some people who own stock will ' write' (sell) an option on stock that they own in hopes that the buyer will never exercise the option and they will keep the small amount of income from selling the option. Then in another 30 to 60 days they can sell an option on the same stock again and collect more option money . The only downside in this move is that if they must deliver the stock there may a capital gain and they would be liable for the income tax on the gain. One of the info gurus, Wade Cook, is promoting a 'system' whereby you buy an option that the stock will go up and one that the stock will go down. Therefore, when the price breaks out you are covered either way. That all sounds well and good... but what if there is no movement and you have purchased two expensive options and not just one ? Therefore, the need to search for 'cheap options'. I am in the process of setting up a computer program which will identify the cheap options which have a potential to grow. Without a computer program, the search is extremely tedious. I know, I have tried. Visit Home Page Currency Trading Mini Course Discover my Secrets !   NAME : E-Mail:   Note: I HATE spam as much as you do and will never give out your email address to any third parties for any reason. Ultimate resource to Supplement your income Are you making money other than working? I strongly recommend that you check out The Currency Trading System Back to Home ...

U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Montana Lee

You are toooooo coooool for words !!

Thank you ! ..... Kitty Houghton
5/3/01