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Long call options 6+ months are a great way to make money if you believe the stock will increase. Especially in growth sectors like cannabis, long calls can mak
by gt565k 6y ago
Long call options 6+ months are a great way to make money if you believe the stock will increase. Especially in growth sectors like cannabis, long calls can make you some significant money.
- fractionalhare 6y agoOn a risk-adjusted basis, without an actual edge helping you determine which options to buy, this will not outperform SPY.
- tedunangst 6y agoSo is that the answer to everything? If you want more risk, just lever up 4x on the S&P? Why do other stocks even exist?
- fractionalhare 6y agoIt probably seems cavalier or maybe dismissive, but yes. If most people want to take on more risk, I'd suggest just levering up SPY. Without an edge buying options is just going to be beta anyway, but costlier and with extra steps. Take away the discretion unless you're provably excellent at it.
- caymanjim 6y agoYou've been lucky so far. Ask yourself if you actually know what the value of the options you're buying is, why they're priced where they are, what the fundamentals of the company are, what the risks are. If you're not an expert, it's nothing more than gambling. That's ok, gamble if you want to. I do. But don't pretend it's investing, and don't promote it as a good way to make money. You just got lucky in a bull market.
- gt565k 6y agoLearn something about how financial markets work before you make a blanket statement that options are gambling. Yes, you can gamble on options if you don't know what you're doing, but they are a financial instrument that can be used to hedge risk and make informed financial decisions that result in great rewards.