Options – Life Options

by Dennis Volz

in Choices,Kindness,Perspective

Options. aka Choices.

We face them every day. Options of speech, options of behavior, options of fast food places, and options of attitude.

I’ve been learning about other options lately. Options in the stock market. Kind of a hobby of mine. Here’s that I’ve learned so far. Options are risky. Options are unpredictable. Options can soak your cash in a heartbeat. While they’re all of those, they’re not all that complicated.

Skip this easy-to-understand explanation of options is you already understand them…

An option is the right, but not the obligation to purchase a stock at a given price. You buy the option for a given period of time and if you don’t exercise the option in that time, your option expires worthless. Let’s say I like IBM this week and I think their stock is about to move upward. I can buy 100 shares of the stock at $110 per share ($11,000), or for about $2 per share ($200) I can purchase just the option to buy the stock at $110 per share. With the option I’ve bought the right, not the obligation to purchase the stock at $110 per share. The option will expire in several weeks, but if the stock increases to $120 I can exercise my option and buy the stock at $110 and immediately sell it for $120. If the stock goes down to $100 per share I wouldn’t want to use my option to buy the stock at $110 when I can get it for $100. My option would be almost worthless. I can also sell the option itself which is more valuable than when I bought it. It might e worth $11 per share and I can sell it for $1,100 instead of the $200 I paid for it.

There’s just a LOT of things I can to. I guess that’s why they call them options. By participating in the game, I have options — choices. It’s also my option to leave my $200 in the savings account and skip the whole scenario. Or I could take my $200 and buy a DVD player, a pair of tennis shoes for my son, or a new painting for the living room.

Options, options, options.

While you may NOT be an option trader, you are presented with Options every day — Life Options. Life options are more important than money options. Money options determine the way you live with (or part with) your cash. Life options determine how you decide to cash in on living.

Here’s a good one. An ancient script tells us to “be kind to one another.”  It’s a simple idea. Seems clear enough. Not complicated. Probably the kind of habit that’s so unmistakably elementary that it’s beyond us. It’s not that we can’t do it, we just forget. You see, kindness is a habit. Just like harshness.

We have an option — A choice.

dv


It’s a Good Life !

Email: Dennis@DennisVolz.com


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