Australia's largest stock trading and investment forum Australia's #1 stock forum

Options, page-53

First 53 Last

Share
Profile

Follow
Jockr64

832 Posts.

159

13/02/21

12:45

Post #: 50955657
Share

Originally posted by winnetwo: ↑

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

Expand

Thanks for the reply winnetwo, definitely clarified the difference between company listed and options boards. Cheers. Can I bother you further and ask if you could confirm the other part of my question in relation to the purchase price of company listed options? What, If any, additional costs if you choose to exercise the options later for a profit? Or How exactly do company listed options work? I'm nowhere near educated enough to venture anywhere near option boards yet
Upvote

0 Great analysis

Reply