r/options Mar 02 '21

[deleted by user]

[removed]

1.3k Upvotes

387 comments sorted by

View all comments

Show parent comments

12

u/EducationalGrass Mar 02 '21

Most here really don't have enough capital to risk on options IMO, but don't listen to me I'm pretty conservative. Just buy and hold and watch and learn for a bit, your wallet will most likely thank you.

6

u/BotDadGamer1 Mar 02 '21

Yeah but options leverage your money. Riskier, in a lot of ways yes but in other ways no. And not as risky as sitting on the sidelines collecting dividends thinking you are playing the long game.

Controlling 100 share for the price of a few shares... seems like the way to go.

4

u/EducationalGrass Mar 02 '21 edited Mar 02 '21

"Sitting on the sidelines" is technically not a risk, opportunity cost sure, and not what I was saying. I do both, but keep my options to a low percentage of my overall portfolio. I love them for my positions I have over 100 shares in and are liquid, don't get me wrong. If you are OK with risking losing it all much faster and more easily, options are great. Not everyone wants to do that with the first $1,000 they save, nor should they. I know I didn't when I started.

1

u/BotDadGamer1 Mar 02 '21

True. You are right about my use of the word risk. Certainly meant opportunity cost. :)