Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD) which can be obtained from your broker; by emailing email@example.com; or from The Options Clearing Corporation, 125 S. Franklin St., Suite 1200, Chicago, IL 60606. The content on this site is intended to be educational and/or informative in nature. No statement on this site is intended to be a recommendation or solicitation to buy or sell any security or to provide trading or investment advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions.
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
1 reply on “Are Low Priced Stocks Good for Trading Options?”
Always need the reminder about the 10% rule. I broke that a few weeks ago and got burned. When looking over the trade I go “Duh, 10% rule”, Dan teaches these things for a reason.
Got lucky today. Bought an ATM put on NFLX at the close. It had earnings AC. Not sure what will happen in the morning. I’ll bet the bid/ask will be more than 10%. We will see.
See you at the webinar in an hour.