Investing

Options Trading on Questrade

  • Last Updated:
  • Jul 30th, 2015 10:58 am
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[OP]
Member
Feb 25, 2015
218 posts
74 upvotes

Options Trading on Questrade

I'm trying to get my head around Option trading and what the cons and pros of doing it and how it actually work on questrade, I've seen the "option book" in QT and watch some youtube videos. For call option you basically what to buy a stock at a certain price with an end date, I believe you can you buy and sell it before the actual end date? but how do you actually do it in QT? Also can you actually just sell the option and not buy the actual stock before the end date?
9 replies
Sr. Member
Mar 14, 2015
816 posts
83 upvotes
Edmonton
Pros:

Get rich extremely fast (possibility, example bought 50 contracts of CELG 117 calls last week for $20 a piece, sold them for $260 each in a span of 4 hours.

Cons:

Can get poor extremely fast
Jr. Member
Jun 29, 2010
135 posts
187 upvotes
Toronto
yeah....if u r asking about pros and cons, then ur really not ready. any type of derivatives should not be taken light, regardless how much experience you have with other secondary market products.

i STRONGLY recommend you to read over DFOL books for the basics, and then read over Option Strategy by CSI.
Deal Fanatic
User avatar
Jul 19, 2003
8133 posts
759 upvotes
jefouyang wrote: yeah....if u r asking about pros and cons, then ur really not ready
+1

walk away now. keep your money. unless you're ready to train.
[OP]
Member
Feb 25, 2015
218 posts
74 upvotes
masterhapposai wrote: +1

walk away now. keep your money. unless you're ready to train.
Thank you for the respond and advice, I'm eager to learn and less eager to get rich fast. So is this something that you can learn thru books, reading or by actually doing it? I do understand that some skills will be hard to learn and some people just have a talent to excel on some.
Deal Fanatic
User avatar
Jun 19, 2009
6133 posts
1980 upvotes
Scarborough
First learn the different strategies, (possibly learning the fundamentals such as delta, volatility etc.) then you can start to learn the pricing models/strategies.
Penalty Box
Dec 27, 2013
8003 posts
4031 upvotes
Toronto
williwx wrote: I'm trying to get my head around Option trading and what the cons and pros of doing it and how it actually work on questrade, I've seen the "option book" in QT and watch some youtube videos. For call option you basically what to buy a stock at a certain price with an end date, I believe you can you buy and sell it before the actual end date? but how do you actually do it in QT? Also can you actually just sell the option and not buy the actual stock before the end date?
option trading is pretty simple.

if you are using the web browser edition - green and white and pretty basic over lay, click on Option tab, search up the ticker and then click what strike price you want to buy at.

if you are suing the advanced browser, which is all black with all the widnows and stuff, same idea.. click options. then you can pick the different strike.

the advanced browser has a more sophitsticated drop down allowing you to do "condors" butterflies, etc.. It sets the trade up for you.

But for just buying call options, it's really straight forward.
Jr. Member
Jun 29, 2010
135 posts
187 upvotes
Toronto
don worry about excel and stuff, those things will come later, learn the fundamentals.

go find some pirated copies of the DFOL and Options Strategy books. read, do practice questions until u understand how option price works in conjunction with call-put parity calculation.

THEN get a excel to formulate it in for ya. trust me....derivatives are not get rich fast vehicles, otherwise every other guy u know would be a option specialist.

set u r self apart from novice investors and learn the fundamentals, that's gona set u r account balance apart from the novice investors too.
Banned
Dec 2, 2013
15 posts
3 upvotes
Westmount, QC
Options trading can be used for creating cash flow and protecting your money. You can control the stock pricing in it and take a decision by looking to the future aspects. To become an expert you can join any option trading course.

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