My overall long term goal is to own stocks and use them to generate cash flow for the rest of my life. Short term I will generate cash flow to buy these stocks by trading options to reduce the purchase cost and to lower the risk I have in each stock I own.
Why Options? Leverage. Why would I choose to trade the USA markets when I live in Australia? There are less than 2000 companies listed on the ASX; USA is about 100 times bigger. ASX has an average of 4 billion dollar, daily turnover; USA is about 100 times bigger. ASX has approximately 120,000 trades per day; USA about 100 times bigger. ASX has less than 100 companies with listed options; USA has over 3000 highly liquid stocks. ASX requires a minimum 1000 shares per contract; USA 100 per contract.
