Options Writing & Stock Trading: " is it a gamble or investment?"

Chances are you've heard about options or 'stock options' as an investment.

Chances are if you've heard that much, you've probably heard that it was a risky trade as well!

Well, like any investment there is a level of risk, and there is a 'risk level' if you will, just by getting out of bed in the morning, or a risk factor if you stay in bed as well....so everything we do have an element of 'risk'.

The way I look at it, is the difference between a 'gamble' and an 'investment'.

Not, trying to judge risk, but look at it from a 'gamble' to an 'investment' perspective.

And although we trade options and stocks on a daily basis (and make our living at it), we don't look at it as a gamble, but rather an investment.

Investment is more of an 'ownership' type term where 'gamble' is more of a 'guess' or putting money down on an idea but nothing tangible or 'owned'.

Now, saying all that, I think there are stocks that are purchased that could be simply gambling.

But we look at it, from a side of owning the company shares, or selling (as in Option Writing) options that are against the shares of a company (these are real companies, and real shares.) Rather than putting money on a horse or card or dice roll.

Once the roll is over, or the numbers are played your ticket is worthless. And if that lottery ticket was never a winner, then it was a gamble because it NEVER HAD LIFE (it was useless the moment it was printed).  The share or the option had value (that fluctuates daily) the moment it was created, whether that price goes up or down doesn't take away from the fact that this had value the day it was issued (or born if you will).

You can't say that about a lottery ticket or a roll of the dice at a casino.

To me that's a gamble.
What we do, has value and ownership making it an investment.

-eric

For more information of what we do see:

www.OptionsWriter.net
www.3PercentPlusPerMonth.com