If you ask me like that I truly have to say: I never really thought about it. I am just used to O on F and that;s it.
Depending on the strategies, you can use option only as a hedge against the future. But the same you can do against shares or ETF's.
If you do pure option strategies which not include other derivatives, you can do that with O on F and O on Shares.
Let me start here: At the moment you start to feel save when people start to talk about theta, gamma, vega, rho, time decay, implied volatility, open interest and so on, you did the first step.
Next step is to understand a few option strategies. Make it simple at the begin and go for a credit spreads, a synthetic put and a synthetic call. If you have a share portfolio, go for covered calls and puts. That is more than enough for the begin.
Next step you then can do is really to specialize your self on the conditions and rules you have to consider and to understand from the underlying you will use. If your choice then is the futures, so it will be. In my opinion, there is no better or worst. Just personal interest.
Choosing the future as the underlying, you then have to understand the different expiry months, different kind of strike levels for options, different models of future pricing and so on.
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I don't know if this question is stupid or obvious, but the following question appeared to me:
1.) Selling covered options for Acme Corp trough Broker X
2.) Having stocks from Acme Corp in my personal portfolio at Broker Z
Now my trade goes "wrong" and the counter party uses the option for the stocks. What is the usual way to fulfill this trade? Delivery of the stocks (transferring the stocks to the new owner, which would result in further transaction costs?) or a cash settlement (paying the agreed price for the stocks respectively the difference)? For futures options it seems clear that there is only a cash settlement, but how is it for stocks on covered options...
In my opinion : That is not the point in option trading and it never was the point in option trading.
Are you able or do you understand how to calculate any options or credit spreads fair value prices?
What ever broker you use, this is the first thing you do before you implement any option trade in the market.
After you have your price calculated you check the price in your platform. If you do not agree, you can place a limit order or you call the desk to give you the actual bid ask price for the option or spread you want to trade.
Some spreads for example are not even shown on your brokers platform.
Option trading is not future trading. and I am not clear if you are clear about that?
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