I am trying to teach myself to quickly think in opposites and get used to all words in OPTION trading. So until I have all in my head and can quickly think I will not trade options yet. I am member of comsec and I trade shares.
I do understand options well by now in it independent way but when I start clicking on COMSEC trading OPTIONS the words are different and the list of options are not giving me information I want or I would expect there would be. So I am still learning.
I understand what is BUY or SELL a COMPANY at $ price paying PREMIUM(or receiving) and I understand CALL and PUT.
But COMSEC trading tools have BUY CLOSE/OPEN or SELL CLOSE/OPEN and when I search companies using COMSEC tools it only shows limited information on OPTIONS.
So what is equivalent in COMSEC to BUY 34.5BHP CALL @$1.12 premium?
And what is equivelant to COMSEC to BUY 34.5BHP PUT @$1.12 premium?
Same thing for SELL the same.
This is regardless if I own the stock or not but at level 1 & 2 you do need to have it.
Finaly is there a risk to try buying stock and lets say buy call option on same stock at the same time in terms of time difference between how quickly you aquarie options and stock? Or maybe you may not get lucky to get precisely what you intend.
Any comments appreciated.
The market is crazy at the moment but I find that using OPTIONS for insurance purposes (so yes BUYING and PAYING $$ TO THOSE WHO KNOW BETTER=WRITERS) is good idea for long term investments. Not right now but in stable market conditions...