Timo57

Great post for newbie like me. Especially appreciate the detailed thought processes. I'm just beginning my Futures trading education before I trade. Using paper money account, but it's less interesting. Wish I could treat it like the real deal.

This is my first post ever on a TL blog and I selected the options thread because I am very new to this. I have options privileges but have yet to actually trade real money. I am very comfortable with trading stocks which seem pretty straight forward vs. options. I use TOS with TDA and have gone through all of their free options seminars, and also have Investools access and have taken their free options webcasts. It seems that every time I start to evaluate costs, possible return, etc. the premiums for buying or selling using various strategies, the upside is so minimal (vs. risk and commissions) that it just doesn't make sense. Obviously, I am missing something in my understanding on a basic level. I own some pretty high volume stock with heavy option trading (BMY for example). I've got lists of strategies and when and why they are used, but it's the actual application of it and clearly understood advantages that elude me. And I am not against taking moderate risk if I understand the process. I realize my problems may be too basic for this thread. I also know I need more education on this topic. Any references or advice of any kind would be most appreciated. Timo