Some basic questions

Dark Horse said: "I'm a sports gambler and trader. I'm just learning about options trading and have a few questions. 1) Can I trade options for the Dow (DJX); i.e. all stocks of the Dow under one umbrella? 2) What is the best place to trade online? 3) Can I buy and sell at the times of my choice? 4) Does the price for the DJX options mirror the Dow, or is it based on current offers? 5) What is the best leverage/risk ratio for options in terms of money management? Many thanks."

Dark Horse said: "Two more: 6) Is there sufficient liquidity in the field of options trading, so that offers typically are met quickly? 7) Do I trade only with fellow traders, or are their large volume market makers guaranteeing liquidity? Gracias."

Dark Horse said: "I might be using the wrong terminology. lol Just realized that options are 'exercised'. :laugh:"

roarflolo said: "[URL="http://www.cboe.com/"]http://www.cboe.com/[/URL] has lots of material you can use. [URL="http://www.thinkorswim.com"]Think Or Swim[/URL] is a good place to trade options (among many). Be careful and good luck!"

Rickster said: "Regarding questions 1 and 5. You can buy/sell index options, or you can buy sell options on the DIA (DJI ETF). I never take a trade unless I estimate that the risk/reward ratio is 1/3 or better. That goes for options as well as stocks."

drdan said: "I second CBOE as your first step. Do some reading or your going to lose a lot!"