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Read widely online and find a financially-oriented community that matches your level of expertise and situation. Serendipity can play a major role. Stumbling ac
by tatrajim 3y ago
Read widely online and find a financially-oriented community that matches your level of expertise and situation. Serendipity can play a major role. Stumbling across early on LEAP (i.e. long-term option) trading and later learning to navigate the complex world of closed end funds, helped me -- after many twists and turns -- realize a very comfortable existence. Ruthless self-awareness of one's limitations is useful. Expect to make many mistakes.
- dt3ft 3y agoNever heard of LEAPs, will read in-depth about it! Thanks.
- tatrajim 3y agoIf you do delve into the beguiling world of options, so full of snares and pitfalls, at some point take the time to learn how option market making works behind the scenes. This will help provide a more seasoned understanding of why the price action of of stocks in advance of LEAP expiration (the 3rd Friday in January each year) exhibits apparently irrational behavior (often major drops, like AAPL recently) and can prove invaluable, e.g. in understanding why holding through expiration is normally foolish. Additionally, a comprehension of the role of volatility in option pricing (part of the Black-Scholes formula) is crucial, often decisive. Enjoy the journey.