3DAO Options, page-4

Appreciate the replies, I have done a lot of reading, but still have more to learn before I get involved, or else risk getting poor value

My reasoning for looking into buying options is because I think when overall risk sentiment turns it will turn hard. So buying options might be more risk of losing it all but if I'm right that the small cap/tech/growth stocks will eventually surge then the options can deliver a much higher return for a smaller outlay?

I see what you're saying Andres, but it might be difficult to sell options if there's illiquid trading, like 3DAO for example? I think if I was to buy some 3DAO I would need to be prepared to hold until strike price is passed or risk selling at unders. I wonder if there any other stocks out there that have options quoted with high liquidity, could probably learn a lot watching that

Anyway I learnt the intrinsic value of an option is easy to understand but the extrinsic value, wow, gunna take a while to get my head around that. The time value for example is easier to work out if the options are already in the money but more complicated if they are not

And it seems that volatility is maybe the most important value of all. The more volatile a stock, the higher the price of the options. Whereas a stable stock such as DRR would have a low volatility score and options would be worth very little

But again attempting to measure the volatility of a stock isn't exactly easy. Will do some more digging