Hi Jock, You have the right idea. When investing in shares you can never ask too many questions. This is even more true for options. Due to their leverage they can be very rewarding; however if the market turns against you, they can be devastating. There are different kind of options - the ones I refer to here are company issued and thus listed on the main board next to their company's shares. When to talk "puts" and "calls" you are referring to the options board. Different animals altogether! Be very careful that you understand what you are dealing with. There you can bet not only on future events happening to companies but also to currencies and indices. They are almost akin to futures; however your risk is limited to the amount invested. If you are interested in exchange traded options you may also have a look at warranties. They are again a step down from futures in regards to risk/reward.
I hope this throw bit more light at this topic.
Best of luck
W2
- Forums
- ASX - General
- Options
Options, page-52
-
- There are more pages in this discussion • 41 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)