facebookShould I just invest in options and not buy the stocks? It seems to me that they are way cheaper than buying stocks. - Seedly

Anonymous

26 Feb 2020

Stocks

Should I just invest in options and not buy the stocks? It seems to me that they are way cheaper than buying stocks.

Discussion (5)

What are your thoughts?

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Don't buy options (super high risk)

don't buy single stocks (high risk)

buy passive indexing ETFs (moderate risk)

Rais M

26 Feb 2020

Accountant at SME

Options are cheap for a reason. You do not own the stocks when you buy options, you are merely owning a peice of paper that will expire over time.

When you buy options, you are expecting the share price to reach a certain price. You will only make money if it move to the direction you are betting for.

You can also sell options to get an option income. This is a completely different ball game as there are significant risk involves as you will need to have money in the brokerage account or own the stock depending on the type of options you are selling.

Most importantly, please do read up more about options before you do anything.

There are pros and cons to investing in options. Please do your own research before investing in any...

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