No. of Recommendations: 1
I agree with Buzman. I've never bought/written options for a few reasons:

-The commissions are high, especially if you're trading a large number of contracts (which you'd end up doing since option prices are often less than $1).

-The bid/ask spread is 10-25% of the price. That's a big hurdle to overcome before achieving profits.

-With options, you're no longer looking for long term value in companies, but shorter term market swings. I don't think such swings can be predicted.

-I'd spend half my waking hours keeping an eye on them.

I don't ever short stocks either...I just go long stocks I think will outperform the market.


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