The Basics Revisited, Take The Time, Change Your World

But It Looks SO Complicated

I have been made aware that some visiting here have struggled with the concepts. It IS hard to get one’s head around options, no question.   Many people therefore shy away. As a result, they trade something else, badly. And…….. lose their pot of cash.

Our aim, which we cannot stress enough, is to enlighten. To get others trading, and thence on board the profit train. To empower, and therefore give our traders control. Rather than give cash blindly to some fund manager. Remember QE (our money) was gifted to these people. They are only afloat because they are massively subsidised by our taxes.http://www.huffingtonpost.co.uk/adnan-aldaini/quantitative-easing_b_6692038.html 

Political Rant Over

Back to basics and what actually are options? Think of them as insurance premiums. You can insure against the market going up (buy a call) OR going down( buy a put). We just use the FTSE100 as the underlying entity.

OR……. you can be the insurance company. And if insurance is such an awful business why do they vie so aggressively for our money? Why do they own the skyscrapers? Because 98%+ of the time, your house does not fall down and your car does not crash. Our insurer, in addition, ‘lays off’ the risk to the underwriter. We are therefore able to simulate this, by ‘laying off ‘ any proportion of the risk.

It’s STILL Complicated

Hopefully you grasp comfortably, the concept of options as insurance. That is something we surely all have in our lives. Your  journey to discovering options and our real life trades here will give you such a head start. If you never intend to trade, you will gain insights that most brokers, and money managers have no idea about. Comment, challenge us. Please.

Where To Start:

Below: Two excellent sources

http://www.21stcenturyinvestoreducation.com/page/tce/courses/?sid=6236057324.13220045

http://www.cboe.com/education/getting-started