MOST PEOPLE DO OPTIONS BEFORE THEY EVEN UNDERSTAND STOCK.


That is CRAZY!
They cannot explain the business.
They do not know what EPS is doing.
They do not know if the stock is cheap or expensive.
They do not know what the company is actually worth.
But somehow they are buying calls and selling puts on it.
That makes ZERO sense.
If I do not understand the company, I do not touch the option.
If I do not like the valuation, I do not touch the option.
If I do not like the moat, I do not touch the option.
Because options do not magically make a bad idea better.
They just make the result bigger.
Good or bad.
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