Thread: Options trading
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Old 02-07-2004, 04:16 PM   #15
LegendKiller
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Join Date: Jun 2002
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Quote:
Originally posted by johnnymk


"Odds of winning and losing."

Sounds like gambling to me.


Again, its only gambling if you can't control the outcome. Options COMPLETELY control the downside outcome if you buy them.

So, gambling is a 50/50 chance. Options are a KNOWN $3 MAXIMUM loss and an UNLIMITED potential gain. You are CERTAIN you will ONLY lose $3. Shizzit, if I could go to Vegas and ensure that I will ONLY lose $3 but will gain unlimited, I would make myself rich quite easily.

The only thing you are 'gambling' with is how much you gain.


LK
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