As a beginner, how do I choose the best stock options?

Well,study the market for atleast 3 months before you start investing. Good Luck!

Hi asutn90, it's not a bad idea to look for an investor, in fact it is the wisest thing to do, but I think you could give yourself a taste of getting very involved with your own investments if you practice with "play money". There are a lot of sites which use this method and besides they don't charge you, and the most serious I've found surfing google is one called "gnutrade". Very simple to used and you don't even need to download anything. Just give it a try ;)

options can be both profitable and at the same risky. It is one of the two derivative products out there on the market. It is a great leveraging tools to use for hedging risks, not creating risk. Ask people (in real life) who can expose you to the dynamics of this investment gadget and you can decide later.

It is not easy to respond because of the many variables involved. You could observe the different ratios offered, i.e. price/earnings etc. Major stockbrokers offer websites full of relevant information and advise.
I would suggest that you take a free course in financial analysis at www.peoi.org where I serve as a tutor and translator.

Use an online investing firm like http://www.kotaksecurities.com. It gives you all the necessary information you want to have for choosing stock options.

To trade options you must understand that rather than consider whether the price should go up or down you are actually looking whether the range of future prices might be wide or narrow and with what probability associated with each prediction. Once you understand this principle you can apply it to your favorite underlying - in this stocks or stock indices. You buy narrow and sell wide.

As someone who has played the stock market, I can give you the following advice. First, I am a small investor, with a little over a thousand dollars invested in a range of about 130 stocks and ETF's (Exchange treded funds). I can tell you that overall, my account is worth almost double that. Some of that was luck, some was educated picking.

If you are looking for a great place to start, try www.sharebuilder.com. I have only invested through them, d I love em! No minimum balances, and you can buy 1.00 worth of a thousand dollar per share stock. They will sell you % of shares. I have some stocks like Google, that sell at about $650/share, and I own $5.00 worth. (that 5 bucks has already made me about 1.30...)

Best advice if you want to be safe, is to buy products that you KNOW and USE...Pepsi (symbol-PEP), Coka-Cola (KO), Google (GOOG), McDonals *(MCD), etc. The idea is these companies are safe investments. They won't yield as much as some overnight sensation, but over time you WILL NOT lose either.

My advice is set all of your stocks up into DRIPS (Dividend Re-Investment), this grows your portfolio and your amount of dividend return.

Good Luck!

The best stock options to choose as a beginner would be those in the gay porn industry. They are a booming market, and you should buy immediately to reap the benefits. I guarentee a 500% increase in capital. And you get to participate in the business! They pay dividends through penetration.

As a beginner or "newbie", you don't choose any option for any stock. You learn about options and how they work.

Trading options is A WHOLE LOT different than trading stocks.

There is terminology you have to learn about AND how that jargon works in relation to the options.

Ther are free on-line options education sites. Some are bettetr than othres.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

Sources: My wonderful family!

My wonderful coaches and mentors!

TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of!

Trading stocks and options more than 2 years.

"THE University of Hard Knocks"

Use an online brokerage firm that has good beginner qualitys {like tutorials or easy to understand set up}, i use zecco, better then schwabb, etrade, etc. they are the only ones with free stock trades and no minumums..

http://friends.zecco.com/r/a7a2877caab8102b8555

The safest options are called covered call options. The investor first buys the stock and then sells(writes)a call option. Most online trading sites run by investment companies offer a list of all the premiums paid to you along with the corresponding strike prices. These are known as option chains. So the best way to pick an option is to buy a well rated safe stock. Then choose a strike price above the cost of the stock and aim for a minimum of a two percent return for a 30 day period. The result of this method will be a return of about 24% and up per year in a normal year. The 3 and 4% returns on some stocks will make up for the times when some stocks decline for a while and prevents making much from new options for a few months.