One intimidating factor about the options market is its language. The exotic and specialized terminology used by option traders often creates the impression that this market is too high level and advanced for the average investor. The truth is that by mastering a few terms, you can overcome the language barrier. The best way to learn any language is to situate yourself in an environment where that language is spoken. If I want to learn to speak Spanish I will hang around people who are speaking Spanish. Not that learning the lingo of option traders is equal to learning a foreign language but there are terms that will make you say "why do they call it that"? When it comes to options there are two kinds, there are "call options" and "put options". You can sell a "call option" and you can buy a "call option", you can sell a "put option" and you can buy a "put option". And there are many more!... INTIMIDATING?....Yes, but do not succumb to the language of "Wall Street". The name of the blog is "Main Street beats Wall Street" not Main Street succumbs to Wall Street. So, to start learning the lingo, start talking to people who are involved in options. Maybe get into this venture with a friend. Someone to talk and study with. Buy some books to reference. A great way to learn about a term is just Google it. Watch the financial shows. I like Fast Money on CNBC and also Options Action also on CNBC. One thing about Fast Money and Options Action, when they are explaining a trade they talk really fast. This can be intimidating. Why do they do this? I don't know, but don't give in. There is so much money to be made as you will see in my posted trades....Lets get started. I am going to list a handful of important terms and make a link. The name of the link will be "Stock options Dictionary". This link will be located on the right side of this blog's home page just below "About Me". This list will start off small with no definitions, as of this writing (I do not have time to write a dictionary right now). As time goes on I will add terms to the list plus add definitions. If you need to know a term that is not listed or the definition is not there yet, just Google it or you can e-mail me.
Today was the last day of trading for the period, which is expiration day. In the next day or two I will post the results of the few trades I posted that I entered during the last month. You will see the real results of real trades. When you see the money that went into my account you will be looking up the definition of "Capital Gains"
The Coach
Welcome to the “Main Street beats Wall Street”. This blog is for the stock investor/trader with experience in trading options. It can also be helpful for the ones with no experience with options who want to learn how options can be used to pursue your trading goals. As time goes on “Main Street beats Wall Street” will be giving many lessons from “Getting started” to you making your first trade. I also have an e-mail for any questions you might have from a lesson or a trade I posted,coachsjc@gmail.com. On “Main Street beats Wall Street”, I (the Coach) will post every trade I make. In recent years I've had years with over 400 trades. I will not post last years or last month’s trades, or hypothetical trades. ONLY REAL TRADES! I will post a trade when I get into a position and I will post the trade when I get out of that position. Along with my trade I will post my “RISK FACTOR”. The risk of my trade will be rated from 1 to 5, 1 being a low risk trade and 5 being a high risk trade. You will see if I get out making money or get out losing money. No Hoopla. “Main Street beats Wall Street” will show you how the people who live on Main Street throughout this country can be as good as the people who work on Wall Street. This blog is totally free, I am not selling books or tapes. I am only having fun and staying involved in something I love, the stock market. I make my money buying and selling stocks and options. If you put in a little time you too can make money; enough money to change your life forever.
T
