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

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          Anonymous

          26 Feb 2020

          βˆ™

          Stocks

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

          5

              Discussion (5)

              What are your thoughts?

              Jonathan Chia Guangrong

              Jonathan Chia Guangrong

              21 Apr 2019

              Level 12Β·Cybersecurity Trainee at Bank in blue

              By investing in options I'd assume you are buying options. Yes it's cheaper than stocks but you will only make money if you are absolutely, 100% sure about the direction the stock will take by the time it's near the option expiry. Do note that option premiums decay due to the time value and it will lower the value of your positions every moment you are not right. 80% of options expire worthless so you need to factor this as well.

              Consider selling options instead for more consistent returns. Best to find someone to teach you this as there can be unlimited liability involved if you don't know what you are doing

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                  Don't buy options (super high risk)

                  don't buy single stocks (high risk)

                  buy passive indexing ETFs (moderate risk)

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                      Rais M

                      Rais M

                      26 Feb 2020

                      Level 9Β·Accountant at SME

                      Options are cheap for a reason. You do not own the stocks when you buy options, you are merely ownin...

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