Feature Articles - Stock to Option Trading: "The Move From Stock Trading to Option Trading
Isn't a Slam Dunk
Originally published in the September issue of Stock Futures and Options magazine.
by: Price Headley

Stock option traders have always been faced with the additional work of not only correctly predicting the underlying security's price, but then also choosing the appropriate option strategy. But most stock traders mistakenly figure they can easily make the transition from stocks to options. As easy as falling off a log, right? Maybe not. There are differences that traders need to keep in mind when making the transition to options.

Stocks Don't Expire. Options Do. Plan Accordingly.

In order to make money in options on an on-going basis, a trader needs to understand the major difference between stock and option trading and that is the impact of time on stock and option positions"