Comments on: Options Terminology: The Differences Between In, At and Out-of-the-Money http://www.investmentu.com/2009/November/options-terminology.html Investment Advice and Investment Research with a Contrarian Point of View Thu, 24 May 2012 17:20:29 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Investment U http://www.investmentu.com/2009/November/options-terminology.html#comment-30023 Investment U Mon, 23 Nov 2009 14:39:53 +0000 http://www.investmentu.com/IUEL/2009/November/option-terminology.html#comment-30023 Gord, No problem. We're glad that Karim's explanation stuck for you. As for how much cash you should keep in your options account, that depends on how much you're comfortable and capable of risking. As a general rule of thumb, investors should have at least the amount of money needed to cover a trade in their account before committing to the trade. And you're right to question Karim's track record. Nobody ever gets it 100% of the time, and you should be automatically suspicious of anybody who claims otherwise. Karim's track record over the past several years has remained around 70%, even during the worst of the financial crisis, something he's very proud about. Thank you for your comment, Investment U Gord,

No problem. We’re glad that Karim’s explanation stuck for you. As for how much cash you should keep in your options account, that depends on how much you’re comfortable and capable of risking. As a general rule of thumb, investors should have at least the amount of money needed to cover a trade in their account before committing to the trade.

And you’re right to question Karim’s track record. Nobody ever gets it 100% of the time, and you should be automatically suspicious of anybody who claims otherwise. Karim’s track record over the past several years has remained around 70%, even during the worst of the financial crisis, something he’s very proud about.

Thank you for your comment,

Investment U

]]> By: sam gammenthaler http://www.investmentu.com/2009/November/options-terminology.html#comment-29935 sam gammenthaler Sun, 22 Nov 2009 16:19:21 +0000 http://www.investmentu.com/IUEL/2009/November/option-terminology.html#comment-29935 on purchasing (or writing) options, do you think it wise to place a stop limit/loss limit order at about 10% below purchase price,or are options better for (position-sizing loss limit plays) than specific stop limits like for stocks? and then replace that with a trailing stop if the position moves in your favor and you can thus then protect your profit? I am a 400 member and appreciate your expertise. My general rule with any investment is: if I can set up a stop loss order around 7-10% below purchase price, it is wise to do just that (unless you want to swing for the fences in a volatile stock). on purchasing (or writing) options, do you think it wise to place a stop limit/loss limit order at about 10% below purchase price,or are options better for (position-sizing loss limit plays) than specific stop limits like for stocks? and then replace that with a trailing stop if the position moves in your favor and you can thus then protect your profit? I am a 400 member and appreciate your expertise. My general rule with any investment is: if I can set up a stop loss order around 7-10% below purchase price, it is wise to do just that (unless you want to swing for the fences in a volatile stock).

]]> By: uberVU - social comments http://www.investmentu.com/2009/November/options-terminology.html#comment-29698 uberVU - social comments Wed, 18 Nov 2009 08:50:11 +0000 http://www.investmentu.com/IUEL/2009/November/option-terminology.html#comment-29698 <strong>Social comments and analytics for this post...</strong> This post was mentioned on Twitter by MktTradingNews: Options Terminology: The Differences Between In, At and Out-of-the-Money http://bit.ly/4AP2Ep... Social comments and analytics for this post…

This post was mentioned on Twitter by MktTradingNews: Options Terminology: The Differences Between In, At and Out-of-the-Money http://bit.ly/4AP2Ep…

]]> By: Gord Pearson http://www.investmentu.com/2009/November/options-terminology.html#comment-29690 Gord Pearson Wed, 18 Nov 2009 01:08:11 +0000 http://www.investmentu.com/IUEL/2009/November/option-terminology.html#comment-29690 Karim, First, thank you for explaining , Calls, Puts, etc -- even this senior is now starting to understand. However, is it true that before you start trading in options you have to deposit a specific ammount of cash into your account with a broker? If so, how much would you recommend? And second question, I'll like to ask - Did you ever recommend to buy or sell an option and your recommendation was wrong? God, I hope so, because reading all the literature and testimonials indicate everythibg was a winner, never any losers -- I know life is good, but not that good, is it?? Gord from Alpharetta, GA Karim,

First, thank you for explaining , Calls, Puts, etc — even this senior is now starting to understand.
However, is it true that before you start trading in options you have to deposit a specific ammount of cash into your account with a broker?
If so, how much would you recommend?

And second question, I’ll like to ask – Did you ever recommend to buy or sell an option and your recommendation was wrong? God, I hope so, because reading all the literature and testimonials indicate everythibg was a winner, never any losers — I know life is good, but not that good, is it??

Gord from Alpharetta, GA

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