Belief:
Options increase leverage.
What this means to me:
Options are a trading tool that allow me to put fewer dollars on the table to make a trade.
What this belief gets me into:
This enable me to hold more positions that trading stocks alone.
I need to understand options and their pricing.
I have to make sure the option is liquid enough to trade.
I have to subscribe to more market data.
It is easier to put on large positions.
I could have positions that are too large.
Options activate my excitement part.
Satisfying or keeping my excitement part in check.
Examining why I need leverage.
What this belief gets me out of:
Having to only trade stocks.
It reduces the limitations of my capital.
Limitations of this belief:
This belief seems to be more of a fact.
Utility of this belief:
This is certainly more useful than options are dangerous or options are risky. There does not seem to be any emotional charge with this belief.
Conclusions:
The real issues to examine here are why use options and why use leverage? What do those items represent for me? Options are a leveraged trading instrument. How I use options and leverage are the real issues to be examined.