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Thread: Learning to do covered calls etc in stock market???

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    Senior Member hustlebunny's Avatar
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    Learning to do covered calls etc in stock market???

    Ok Ladies,

    Excuse my lack of knowledge here...

    I know nothing much but basics about the stock market. My own investments are boring mutual funds, money market for savings and a roth ira for retirement. I've always believed that with the right knowledge money can be made in the stock market. However, since my brain and numbers aren't the best, it would not be my investment vehicle o choice.

    Then, Last week i went to an investment group/class gathering of people who are learning to make money in the stock market doing put and call options etc. I have a friend that has been doing it for a year with success(i have to ask for specifics of that ie...$$$ and cents). From what I understand one starts with 3K in an investment account to be able to do these kinds of options and work to make 10% on your money in the first year and grow from there.

    Is this likely/possible for a beginner just learning? The class/membership would be 200 a month...Does anyone know about this as an investment vehicle or would I be jumping off the deepend and trying to swim afterwards (which I am tired of doing)???

    I am one of those dancers who has made bad $$$ decisions. ie...network marketing which led to debt. Made bad first real estate deal (oh, boy but did i learn though). I am looking for a way to invest my money so i'm not one of these dancers who has nothing to show for it at the end of the road. Suggestions??? I make money. I'm at a good NYC club. I just am trying to learn how to make it work better for me. Obviously, I needs me some direction!!!

    I mentioned this at work last night at work with a stock broker customer who was in VIP for two hours with me. He said to me i'm sure you see all kinds of bozo's in here who make money in the stock market and must be thinking if they can do it i can...Uh NOPE! But when he mentioned it i thought maybe...I want to build enough wealth to have expendable income to spend on strippers hours at a time

    seriously though, thoughts?
    "Whether YOU think you can or YOU think you can't you're right!" -Henry Ford

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    Senior Member hustlebunny's Avatar
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    Default Re: Learning to do covered calls etc in stock market???

    oh and required reading is One Up one Wall Street by Peter Lynch...and it is being taught by someone who,of course, has had great success doing this for over ten years...
    "Whether YOU think you can or YOU think you can't you're right!" -Henry Ford

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    Default Re: Learning to do covered calls etc in stock market???

    with or without this class, dealing in options contracts involves significantly more risk than simply dealing in stocks or mutual funds. With that said, if an investor is prepared to deal with that extra risk, options provide huge potential for gains as well as losses.

    Covered calls are somewhat of a special situation, because in order to sell a covered call you must first own the shares of stock that the call option contract is written against. Assuming that the investor is indifferent about selling or holding onto these shares of stock, selling covered call options is a reasonably good way to earn some extra return. Statistically speaking, something like 90% of all options contracts expire worthless, so there is a 90% chance that the seller of a covered call option can simply pocket the sale price. In the other 10% of cases, the seller of a covered call option must part with the underlying stock shares at a below market price (albeit a price that may be above the original purchase price of the underlying stock shares).

    Personally, when I deal in options contracts I don't want to tie up money in owning stock shares. Therefore I BUY put or call contracts as a 100% speculation, and either win big or lose big (but at least the worst case loss scenario can't exceed the purchase price I paid for the losing contract).

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    Banned Melonie's Avatar
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    Default Re: Learning to do covered calls etc in stock market???

    ^^^ yeah, I didn't want to be negative right out of the gate, but ...

    if the guy putting on these investment classes is such a savvy investor, why is he wasting time conducting $200 classes for a couple of dozen people ??? One would think that he could earn far more by day-trading !!!

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    Default Re: Learning to do covered calls etc in stock market???

    good point!
    "Whether YOU think you can or YOU think you can't you're right!" -Henry Ford

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    Senior Member hustlebunny's Avatar
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    Default Re: Learning to do covered calls etc in stock market???

    I'm curious about how I became a "sucker" by asking a question before making a decision??? So much for a support system...human happens is my motto...

    Thanks Melonie for actually taking the time to make a useful comment!
    "Whether YOU think you can or YOU think you can't you're right!" -Henry Ford

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    Default Re: Learning to do covered calls etc in stock market???

    Oh god I was an angry drunk bitch the other night. I deleted my message. I am so sorry everyone.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
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    Default Re: Learning to do covered calls etc in stock market???

    Apologies accepted! Hugs for Stripper Web again!!!!
    "Whether YOU think you can or YOU think you can't you're right!" -Henry Ford

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    Default Re: Learning to do covered calls etc in stock market???

    Ah, Melonie, the words right out of my mouth about so many "investment advisors"... other than the ones who do it for fun (and it's obvious to me), the ones that have been at it 20 years, I figure if they were any good, they'd be rich and wouldn't need to do it any more.

    Investment Advising... a field in which experience is most likely a sign of mediocrity...

    Like I say, all this excepts the ones who do it because they find it's fun, of which I've seen many.


    Quote Originally Posted by Melonie View Post
    if the guy putting on these investment classes is such a savvy investor, why is he wasting time conducting $200 classes for a couple of dozen people ??? One would think that he could earn far more by day-trading !!!

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    Default Re: Learning to do covered calls etc in stock market???

    Quote Originally Posted by Clara_M View Post
    Ah, Melonie, the words right out of my mouth about so many "investment advisors"... other than the ones who do it for fun (and it's obvious to me), the ones that have been at it 20 years, I figure if they were any good, they'd be rich and wouldn't need to do it any more.

    Investment Advising... a field in which experience is most likely a sign of mediocrity...

    Like I say, all this excepts the ones who do it because they find it's fun, of which I've seen many.
    Wow, more hate for us. I've only been doing it for 2 years but I think I have helped a lot of people out. An experienced I.A. isn't mediocre, he/she is just still working. Why do people keep working in their chosen fields?

    -They love it
    -They have a family and are still saving for retirement/kid's education/travel/homes, etc...
    -They want to make more money to live a better lifestyle


    They might also suck, but in this industry, mediocrity DOES NOT fly for a long time. The advisor will make no money. Then they cannot live. Your comments are so dead wrong, and I wonder what thought processes led you there.

    How about all of those tenured experienced IA at Goldman-Sachs and Bear Sterns making $1 million dollar annual bonuses? A sign of mediocrity?

    HOWEVER..on your side. It is true that most successful IA do it for 15-18 years before they can comfortably retire. The ones that suck are out in 2 years. Firms will not hold them. Seriously, they cost them too much money if they aren't writing enough business.

    Funny thing about these "invesment groups." There is a local one here I work with, and several of them members are also my clients. There is absolutely NOTHING wrong with implementing a dual strategy. Try it out on your own and get educated. Let a professional help you along the way.

    In my office, the only guy that has been doing it for longer than 20 years is back from retirement because his wife passed away and he was lonely and wanted to be able to go back and help people while he was still healthy enough to work. That's about as great a reason as it gets. He doesn't need the money at all.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

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