If I buy in-the-money stock options, cant I sell-to -close right away and make instant profit???
461439
No, the option will usually cost enough to prevent you from making a instant profit.
574028
What you're talking about would be a stop-limit order and not a limit order.  \n\nLet me give you an example with just stock - we'll assume the stock is trading at $100.  A limit order says, "Sell my stock at the limit price or better."  So, if you placed a limit order at a price of $95, your stock would be sold immediately because it's currently trading at $100, which is better than 95.\n\nA stop-limit order is a two-part order, consisting of the stop price and the limit price.  It says, "Activate my limit order to sell the stock at a price of $X if the stock hits my indicated stop price of $Y."  For example, if the stop price is $95 and the limit price is $94, when the stock trades at 95 your limit order to sell at 94 would be activated.  \n\nThere are much better ways to manage the risks associated with a covered call.  I'd recommend checking out http://www.chartbender.com.  Also, send them an email (support@chartbender.com) with "Education Discount" in the subject line.  They'll get you a free video on managing covered calls.
1118646
Most stock games require that the price of the stock be over a dollar.  Finding "killer" returns in that time is difficult.\nShock her and buy Revlon Cosmetics.  No, I am not kidding.  They are trading around $1.30 and should come back to around $1.80 in a couple of months.\nCareful, too- most of those stock games are hard to play.  The computer eats your data (like it did mine on Investopedia.com - I don't play it any more...) or the computer doesn't work at all for half the country (like it did with CNBC SquawkBox Game...).\nGood luck!
667301
There's sooooo much poor information here.\n\nWhen you invest in most stocks the Stock Exchange manages things so you are guaranteed to find a buyer if you're selling and guaranteed to find a seller if you're buying.  The large banks are granted favourable trading terms in return for being in the market and quoting a price to take those 200 MSFT shares off your hands.  They can drop the price they're prepared to pay when more people are selling than buying but they commit to being in the market and quoting a price most of the time.\n\nPink Sheets and Over The Counter are basically the same thing (the name Pink Sheets comes from the fact that closing prices were printed and distributed at the end of the trading day on pink paper).  It is a seperate market for stocks not quoted on the main market.  Basically, when you want to buy or sell a stock there is no guarantee there will be anyone prepared to trade with you.  The more popular stocks normally trade reasonably well but there are thousands of stocks on the OTC market that trade no volume for weeks at a time.  Most of the shareholders will be held privately and if no one is prepared to sell you're not going to be able to buy.  If you are able to find a seller you run the risk of paying a large spread (the difference between the buy and sell price).  On the main market the buy or sell price for MSFT will be the same.  On the OTC market the buy price for a stock might be $10 higher than the sell price.\n\nThe biggest danger is that something happens to the stock while you're holding it and you find yourself locked in.  If I buy MSFT I can sell the stock seconds after bad news is announced by going to my PC and logging onto my brokerage account.  If I hold OTC stock I can only sell my stock if there's someone out there prepared to buy.\n\nOTC stocks are not neceessarily up and coming, as with penny stocks choose very carefully.  Stocks quote on the OTC market for a number of reasons, and there are definately some bargains out there.  But it is much much more risky than the main market.
739164
You are correct.  If the price of the stock rises, the price of the call option will rise.  You can sell your call option and profit without having to exercise it.  The profit will usually be the same wether you sell the option or exercise and buy the stock and resell it.\n\nhth
405554
I was checking this out the other day, but bought PTEN instead.  This stock is fundamentally unsound, the only positive is the 31% quarterly revenue growth, undoubtedly due to the increase in gold prices.  Technically, it's another story; all indicators are Very Bullish in the Short, Mid and Long terms and the stock seems to be forming a solid base finding support at 5.94.  Personally, I'd buy this stock if I weren't currently in another issue, though I rarely get involved with an issue that is fundamentally weak because it makes very little sense.  \n\nHaving said that, if I get stopped out of PTEN and KRY is still in it's base, my play will be to get in as close to 5.75 as possible with a fixed stop loss at $4.90 because volatility could push it to it's previous resistance at 4.91.  If it closes below 5.25 I'll be keeping a close eye on it, and will consider cutting my losses, depending on indicators.  If it stops me out before I can react I'll just take my loss and move on, but it will be a much larger loss than I normally take, because I usually set an 8-10% stop loss, so I would consider this a risky play.  However, if the stock breaks it's resistance at 6.14 and closes higher than it's previous high of 6.25 I'll change my stop loss to a trailing stop of 10% and just hold on, because I can see this stock easily moving to 9-12 before it's next pull back.\n\nWhatever you do, protect your downside.
170958
There are really no "better sites" for that. Just pick one of the big names like ameritrade or scottrade. As far as making money, when you short a stock you are betting that the value of the stock will decrease over time. So if you think company x is going to do poorly and you short(sell) them at 10 dollars a share and then later buy them back at 5 dollars a share you will have made 5 dollars a share minus trading costs.
360517
A) In level II quotes  you receive all bids and asking prices  at which participants are willing to buy or sell stock. Level II quotes had some use when nobody had them, maybe help you spot some obvious support prices that every market participant knows already. \n\nB) Yes, if you want to be market maker ?? you can only trade in cents increments. Thus, most liquid stocks you wont get that.  If you have a limit order you will receive the price you stated or better. If you trade thinly stocks, limit is the way to go.  Still, plenty of times, many of my orders have not been filled at the limit price. It is the worse believe me. Yes, you can make a market in some illiquid stocks, making your bid appear a couple of cents above the current one. Unless you are a day trader, no need to worry about it too much. \n\nC) When you make a market order, your buy (sell) will execute at the ask(bid) avalaible at the moment, you will get the stock at the price show on your quote. In fast moving markets, you will get different fills.\n\nSince, you are asking this questions go with limit or market orders whatever you feel comfortable and try not to day-trade. Be careful.
1170586
What you are hoping to capture by buying a calendar spread is the decay of the first expiring option relative to the decay of the second. Read "Options as a Strategic Investment".\n\nA short term option loses its time value faster than a longer term option. So, if the decay on the longer is a penny a day...and the decay on the shorter option is 1/8 a day...you are capturing 11 1/2cents per day and protecting yourself in case of a big market move. Is it a given that you'll make money??? Absolutely not. Every time you think that, think to yourself "there are a million other people out there that have thot about this for at least 25 years...chances are I am not thinking anything original" !
324804
I hear that buying Royalty Dividends is hot.  Know what it is?  If not, its stock in fuel.  Not alot of investors mess with it but there is a big market for it on the net.  Just set up e*trade account and go!  You get a check monthly or option to convert back to stock options.  That's what I'm hearing!
758273
If you're willing to accept the risk of losing it all, buy a call or a put option that's just out of the money.  In other words, pick a publicly traded company (with a lot of volume) that you feel strongly about.  You can make a lot of money quickly if you think the stock will rise or fall and you pick it correctly.  For example, say you think that you have a strong opinion on Microsoft (MSFT), here's what you do:\n\nThe stock is currently trading at $28.77\n\nIf you think it will go up, buy a CALL option, which gives you the right (but not the obligation) to buy MSFT a higher price.  For example, you can currently get a DEC 30 Call on MSFT for .20 per share on a contract (of 100 shares).  \n\nhttp://finance.yahoo.com/q?s=MSQLK.X\n\nSay you buy 5 contracts and the stock goes up to $32 before Dec., you can either sell to close your option for the going price or exercise it at $30 and make $2 per share.  Here's what you would net:\n\nPurchased 5 contract ($.20 * 100 * 5) plus say $15 commission = $115\n\nExercised ($30 * 5 * 100) = $15,000\n\nSold ($32 * 5 * 100) + $15 commission = $15,985\n\nMade $15,985 - $15,000 - $115 = $870 profit on $115 or 405% return.\n\nTruth be told you'd probably just sell the option, but the profit would be about the same.  If you think MSFT will go down, just do the same thing with a PUT option.  That said, if you guess wrong you could lose your initial $115 and if it doesn't move much you could lose most (or all of your money).
1054185
Scottrade.com $7 per trade dude..   Optionsexpress is good as well when you get a set of balls... ... You do know it is highly likely u will lose money right...  Some of us do this for a living and still get smoked - so dont give up right away .
1158763
You can honestly do it trading options.  You could get a margin account which would automatically give you a $20000 account, $10k yours and $10k borrowed.  Then buy "calls" on stocks you think are going to go up and "puts" on stocks you think are going to go down.  If you chose wisely you will get rich quick, if foolishly you will be over $20,000 in debt in a matter of days.
84731
Before you trade stock options you need to be a proven money maker in the stock market. Unless you can anticipate stock movements, you have no chance trading stock options.\n\nThe way I trade stocks, I cut my losses short at about 7% Several years ago I decided to take that 7% and put it in call options 3 to 6 months out instead of 100% in shares. \n\nYour risk is clearly defined, and you are offered some protection from events such as market closures or gap downs.\n\nI would never risk more than 1% of my entire portfolio on an option position.\n\nSpreads, straddles, and the ability to hedge are other benefits of options. Only trade stock options if you are an accomplished stock trader. You could lose alot of money.\n\nWriting options is statistically a losing proposition in the long run. The risk / reward is clearly unfavorable.
216049
Wow, their are a lot of confused people out there in regards to options.\n\nOptions are not like shares of a stock.  They do not have a fixed number of shares.  They have open interest.  Open interest tells you how many contracts are in existence.   Options are a contract between a buyer and a seller.  When you want to sell or buy an option contract, if someone is willing to take the other side of your trade than an option contract is created.  You can sell a call or buy a call and you can sell a put and buy a put.  Because of this, when you place your trade, you have to specify whether you are opening (creating a new contract) or closing (completing a contract).  \n\nThis is why you have to specify, lets say you are long 10 call contracts on XYZ and you want to sell them.  You would enter that as a sell to close and this would close out those contracts.  If you entered that trade as a sell to open, you would still be long the 10 calls of XYZ, and you would now also be short 10 calls of XYZ.  If you did not own XYZ stock, this new position would be naked calls with unlimited risk.\n\nIf you want more info on options click this link, http://www.cboe.com/LearnCenter/default.aspx\nThe link is to the Chicago Board of Options.  They have awesome materials and support.  I hope that helped.
917710
Buy a call when you are expecting a stock to go up.  A call is an option to buy.\n\nBuy a put when you expect the stock to go down.  A put is an option to sell.\n\nThe strike price determines the 'sales price'\n\nIf you expect goog to bounce, you would by a call for Dec, Jan, Feb, whenever for a strike price of 500.  Dec call would cost you $8 per share (you need to buy in contracts consisting of 100 shares to trade options).  If goog goes past $508 in a true options trade, you profit every cent after that.  You could essentially trade the option when it got close to 500 if there was enough time for the option to have value.\n\nIf you are expecting goog to continue the downward trend, you would buy a put.  The $480 strike for goog Dec option is trading at $7.40.  You essentially have the option to sell goog at $480, so if goog goes down past 472.60 you make money for every cent after that.  Also with the call option, you could just sell your option with more value if the stock starts going down and you still have the intrinsic (time sensitive) value left on the option.\n\nGood luck.
287549
Only one way to make your money go farther:  BORROW.\n\nOptions:  These are contracts that you buy which, if they meet a certain criteria, allow you to purchase shares at a set price at a set time.  For instance, a contract to buy 100 google shares at $225 on April 1st.  YOu might pay $70 for this contract (at least).\n\nOn April 1st, you have to buy the google shares.  If they are worth more than the $70 price in your contract, you gain 100 shares times the difference.  BUT>...  if they are worth less, you have lost the difference.\n\nI recommend you check out www.motleyfool.com or other investing sites.  When in doubt, check with a professional.\n\nAlso, online stock challenges are a good way to hone your skills and strategies without risk.  JUst write "stock challenge" into any search engine.  GOOD LUCK!