I did read what he wrote. "Far out of the money" means the stock has to move big in price for those options to be profitable. Calls being options to buy the stock in the future at a price you set today. Far out of the money calls would be for a price "far" higher than today's price. Put options far out of the money require the stock price to fall far by the contract date to be profitable. Going long in a stock is buying it with the expectation the price will rise. Unlike options, there is no expiration date. Your analysis is both speculation and impulse oriented. If you invest all your money in Apple, you could lose it all. If you diversify using speculation and impulse, you may be up $350K in Apple, but down $500K in Solyndra and Enron. If you invest in mutual funds or other managed asset situations, you'll be letting grown ups invest in a bigger and more diverse basket of investments than you can do on your own. And they will be picking stocks on far more than impulse.
You are 100% accurate about my reason to stay with Apple. It was very impulse oriented. Other than apple, I put my trust in my investment broker. I know I don't have too much business being in the markets on my own. I spread my investment money in %. 65% on mutual funds, 25% in stocks, the rest in Money Markets. My investment broker wanted me to sell my 1,000 shares during the last decline and I refused. I'm glad I did.
I did that long ago and I lost a lot of money. I found a guy that I trust. He's done well so far. I'm not against the diversifying of my brokers, I've just had a bad experience personally. Anyway, I'm in multiple mutual funds. That's almost like your concept anyway.
You can buy a leap or option dated several years in the future. That is considered "short term" by some people, but not you since you're on here talking about monthly price changes. Again...show me, specifically, where I said not to go long Apple stock.
No they aren't. Dividend income is counted as income as one that owns a business pays each year. That could go as high as 40% if you live in a democratic world Capital gains is 15%.
Dude, didn't you see the gun thread? Mags isn't fucking around. You should just agree with him and back away slowly.
Oh i stand corrected. Thanks bro! Although the qualified dividend at upper scale (39.5% ordinary income) is 20%, which is still higher than capital gains
But you get to keep the stock and collect dividends. The asset appreciates, too. Barfo's kind are chasing companies offshore so it's getting harder to find qualified dividends. Smert '
