4) I also hope to pick up Option Trading from J.L. Lord when I have a bigger account size. He has written 4 books in total. The best is "One strategy for all markets". Sounds good heh?
I have read JL Lord's 4 books and they were very interesting.
I only invest in the Singapore stock market. I will enter the US market when I start working and saved a sizable account. In the US market, there are a lot of derivatives to play with when you are buying or selling a stock.
To keep it simple, if Buffett wants to buy ABC company at $50, the current price is $70, he can sell options to buy at $50. Two possible senarios can happen, the price stays above $50 and he collects the premium or the price falls to $50 and he buys it. We cannot do that in the SG or HK markets.
Yes, the US has many derivatives that are readily available in the exchanges.
For the selling put option example, it is actually possible to do so in the SG or HK market. One way is through an equity linked note.
http://www.uob.com.sg/corporate/corpora ... notes.htmlAnother way is through Over-the-counter options. You can ask your bank to quote you a price for selling them a put option. Minimum amount is around 250k for them to entertain you.
From wiki: OTC options, also called "dealer options" are traded between two private parties, and are not listed on an exchange. The terms of an OTC option are unrestricted and may be individually tailored to meet any business need. In general, at least one of the counterparties to an OTC option is a well-capitalized institution.