No. of Recommendations: 3
Hey Mental! Welcome to the board!

I was wondering if anybody here is into options? Last year I lost 99.9% with stocks (woo hoo margin!) and this year I'd like to try options. For instance, I was looking at 3Com, trading at $5, with $6 in cash per share.. The 2003 LEAPS $5 calls are selling at $2.3, so I could either buy 100 shares or 2 LEAPS contracts. Even better if I sold a $7.5 put at $3.1 too. If any of this makes sense to you I would be overjoyed to hear from you. Seems not too many people bother with anything but straight equities :(

You probably won't find a vast number of Fools who trade in options, primarily due to the philosophy of the site itself. The Motley Fool enocourages long-term investments (years or decades), and options are by definition short or at least limited term.

Though options may have their place in a large, diversified portfolio, they are peobably best left alone by most investors. While the potential gains may be attractive, they also have the potential to create losses that would make your margin losses pale in comparison.

Rather than looking at an even riskier kind of investment, you mighe consider simply looking for better stocks -- the kind that you can buy and hold for many years rather than trading in and out of day to day. Besides sleeping better at night, you'll keep more of your profits.

To that end, I strongly encourage you to check out the Motley Fool seminar, Choosing Stocks With The Motley Fool. This is a seminar I plan to take myself. I have taken several TMF seminars in the past and found them unbelievably informative and useful -- but if you don't feel the same way the offer a full money back guarantee.

You can check out (and order) the seminar at http://www.foolmart.com/Shopping/Product_View.asp?PRODUCT_ID=MF2511_01&REF=CSBO03123.

Disclaimer: I am not a Motley Fool employee, just a satisfied customer. I make no money on this referral.

Good luck!
-Terry
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.