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Apple Inc. Message Board

  • melt_that melt_that Jun 3, 2013 11:42 AM Flag

    Investors buy AAPL stock. Suckers buy options.


    It doesn't matter how many times you mention the absolutely indisputable fact that 80-90% of options expire worthless. (Which obviously means the odds are extremely heavily stacked against all option buyers.)

    And it doesn't matter how many times you remind folks of the absolutely indisputable fact that 80-90% of options buyers lose money.

    Some people are just so hard-headed, they'll continue relentlessly banging their heads against the wall foolishly buying options until they eventually (and inevitably) lose all their money. It's not a question of "if," it's only a question of "when" ... it's only a matter of time.

    Nobody has ever made a successful career out of flipping options around. And even if a lucky few options knee-jerk daytraders were somehow unbelievably lucky enough (one-in-millions) to somehow have made a career out of randomly flipping options around, it's certainly not you.


    Investors buy AAPL stock. Suckers buy options.

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    • I take it you're an options expert? You're only partially right. Of course most options expire worthless because most options are out of the money. But used properly, they actually reduce your risk. You can buy AAPL stock and buy put options to protect yourself so you can sleep at nights. You WANT the options to expire worthless while your stock climbs. You could also sell naked puts on AAPL if you want to buy the stock at a lower price and collect premium while you wait. You could also buy deep in the money long dated calls which have a low time premium and a large intrinsic value. They gain the same as the underlying stock, with less capital outlay and less overall risk. They don't expire worthless 80-90% of the time and they limit your losses to the amount of premium you pay. This is a much better approach than actually buying the stock. These are just a few examples. So your advice needs to be taken with a grain of salt. It sounds to me like you either don't have much experience with options, or you have tried to speculate by buying out of the money calls and have lost most of the time. Well of course! Out of the money call buying is usually a losers game and only for speculators. But done the proper way, options can actually increase your profit potential while risking less.

    • This is comical. If you want to believe that, it's your loss. But you do have to be nimble, disciplined and intelligent to accumulate incredible wealth in Options. It's best you avoid trying.

    • Buy stock====option, rent stock.

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