Forum Archive Index - February 2003

["Chris Morgan" <ica.sports@xtra.co.nz>]

Holden

The ASX website has a large section on options and warrants, certainly
enough to get a decent overview before having to purchase any books or
attend any seminars.

Regards

Morgy
----- Original Message ----- 
From: "Holden Glova" <dsafari@paradise.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Sunday, February 02, 2003 3:36 PM
Subject: Re: [sharechat] Options trading and shorting


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On Sun, 02 Feb 2003 15:31, Holden Glova wrote:
> Hello all,
>
> I am a bit confused on trading options and the shorting stocks. I'll start
> with my confusion over shorting stocks. In todays market why is shorting
> stocks not really mentioned much as a good alternative to going long? From
> what I understand you get several advantages:
> * You don't need to put money up front (although of course you should have
> funds to cover those short positions)
> * Because you don't need to put your money up front this gives you some
> leverage
> * More stocks are going down then going up
> So I ask, why is shorting stocks not advocated in popular media? From my
> initial understanding of it there appears to be less risk then trying to
go
> long in todays market.
>
> Now onto options. From my little bit of research on this topic over the
> weekend I think this could be a rather involved topic (correct me if I'm
> wrong). Options can be used as insurance for protection against losses,
why
> is there so much written material that mentions the value in placing stops
> but not the value in using options? I don't fully understand the idea of
> 'naked options' and must require some reading there so I will not question
> this area yet :) Can anyone recommend me some books on the subject of
> options?
>
> Many thanks in advance.

For anyone else interested in learning more about options, I just found this
website http://www.optionetics.com/ . The trading education area seems quite
good (I say seems because I don't know enough to be sure yet).

- -- 
Signed,
Holden Glova
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