Taseko Mines Ltd T.TKO

Re $2.00 Options

[copperminer]

Thanks Sunner, Joe, and Metal for your comments. Learned from each post, every bit helps. Bought a book at Chapters today, "Understanding Options"

Kind of got excited, stopped at McDonalds, parked, bought coffee, and started reading. Learn, Learn, Learn.

Looking forward to this.
Thanks again all

cm

[metalhead666]

Make sure you read the part where it states the FACT that 90% of option buyers lose money.

[JoeStockIQ]

And, that's because many options are purchased as insurance, thereby designed to "lose money". 

[metalhead666]

A loss is a loss.  Anyone who purposefully loses money isn't very smart.  Options are a bad bet. Better off to write covered calls or sell puts if you want to own a stock cheaper. That's being the bank instead of a gambler.  Now, so far as options on TGB are concerned....I love Taseko and fully believe it will be a $10 stock once Florence is printing money...the question is

[JoeStockIQ]

Whatever meathead, you're missing the point. Why did Taseko write their options involved in their current collar scenario when they know they're going to lose money on said written option? Companies do that all the time, it's called insurance. So, by your thinking, those companies aren't very smart. Options may be a bad bet for you but your statement is overly broad. Further, not

[metalhead666]

You prove my point....you look at your $2 call being up 12% and extrapolate that to believing it's a wise strategy. It is not. You can't look at the "hits" and ignore the "misses".....the vast majority of option buyers lose money...this is a total FACT.   TGB hedged because they wanted to manage cash in order to fully fund Florence. They were willing to lose

[JoeStockIQ]

Right, you have the whole option game figured out. You're like arguing with a brick wall. Back to ignore where you belong. Totally clueless you are. 

[Fishbillion]

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[JoeStockIQ]

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[cwDeici]

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[Fishbillion]

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[cwDeici]

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[Fishbillion]

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[cwDeici]

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[cwDeici]

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[JCSunsfan]

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[JoeStockIQ]

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[JCSunsfan]

You missed his point.  He is saying that many options buyers are companies doing exactly what Taseko did.  That figures into the 90%.  Buying options can be LESS of a bet.  Instead of spending $10,000 on the underlying stock you can spend $1,000 on options on that stock and keep $9,000 in cash. You limit your downside risk to 10% of your holdings.  But you also have to

[JCSunsfan]

I have made money on option most of the time I use them, but I use them very rarely and invest in them VERY differently than I do stocks themselves.  If I had used them more, I would have lost a LOT more guaranteed. The guys who do make money in options usually trade for  income and have very little interest in the underlying stock as a company.  They use the Wheel and other