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In a message dated 97-07-04 11:00:25 EDT, M.Turner@xxxxxxxxxxxx (Max Turner)
writes:
> Taking the next step and putting up the cash; now what is the situation (in
> a nutshell) regarding the trading with options as opposed to futures
> contracts?
>
> Sorry if this has been covered before. Perhaps someone might be kind
enough
> to relay the appropriate comments on to me.
>
Max
Without going into deep thought there are two immediate things that
come to my mind first. Note with options, I am talking about purchasing
either puts and calls. Spreads, writing options etc are another ball game.
To me there are two immediate advantages to futures. 1st.. With options
you have to be right about direction as you do with futures, but with options
you also have to be right about time and volitility. If the move I expect
comes, but is slower and shallower than I expect I can still lose with the
options, with futures, at least I'll make something. 2nd. At tax time.
With futures you only report 1 number, your net profit or loss at the end of
the year. With Options its each trade.
I am sure there are other things and some may disagree with me. Okay
Pete
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