Stock Markets Exposed
Should I buy stock or options?
I am new to investing and need advice on whether I should buy stock or options. I am looking to invest in Visa (V) long-term. I think in a few years, the stock will be worth a lot more money than it is now. Would I be better off buying the stock and holding for a couple years or buying leap options? Which strategy would give me the best return on investment?
Public Comments
- If you are new to investing- i would say just stick to buying stock and mutual funds a first. You will learn by osmosis by just getting your statements and watching your accounts. As you learn more, and read up, if you are still interested in options, go for it, but you have to be really careful :) With the market down as far as it is, its a great time to buy some conservative stocks/funds and you should still see a nice bounce when it comes back (so why take the risk of options right now, esp if you are inexperienced) good luck! and get started!
- Since you are new to investing, you should not buy stocks or options. Put your money in a Money Market Mutual Fund and then read Money Magazine and Wall Street Journal and educate yourself on finances. The Money Market Mutual Fund is not as safe as a bank but will pay you more "interest" while your educating yourself and keeping you from losing your shirt.
- I have the same interest in VISA also. Think about all the debit cards out there being used that have the VISA logo on them. I've been trading just over a year now. About 99% of my trades are option trades. Unfortunately (V) is not optionable and it's hard to barrow against. I am looking at an entry point though to own it, as I believe it will follow if not exceed the trend that Master Card set. Two years ago MA was below $50.
- It depends on your personal circumstances, ideas and plans for the short and longer term, your vision about risk and more. Just make sure you don't put all your money in one place. Let yourself make a financial/investment plans based on your wishes and needs, so it will suit and fit YOU. Feel free to send me any questions.
