No lack of OPTIONS
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aliassmith
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No lack of OPTIONS
It seems that other people are interested in options as I am. I was intrigued by them every since Mightyone discussed them with me about a year ago. Since he is busy I figured I would start a thread where we can begin to learn and discuss how options fit into MO 101 technical analysis. If you are interested post a message and if a few people post I'll kick off the thread with some of my ideas.
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lazygeorge
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aliassmith
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rushN4
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aliassmith wrote:Alright then, I wouldn't be discussing options by myself.
Start with a few definitions.
BUYING a Call option gives you the RIGHT to request the underlying at an agreed upon STRIKE PRICE, if the option is In The Money (ITM). You pay a premium for that right.
Yep
you always pay a Premium as a Option buyer. The most you pay on the ITM/ATM Options and the least on OTM Options. On the OTM Options theres is only time value left (theta)....
Look at this old Lady she would laugh about us
http://www.youtube.com/watch?v=cXy9HoWX0es
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aliassmith
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aliassmith wrote:Alright then, I wouldn't be discussing options by myself.
Start with a few definitions.
BUYING a Call option gives you the RIGHT to request the underlying at an agreed upon STRIKE PRICE, if the option is In The Money (ITM). You pay a premium for that right.
To keep it simple we will just talk about longs for a monent. Buying a single call option is a long play. As you can see in the basic MO 101 pic i posted of zline setup a call option could be used instead of buying the underlying and using a stoploss. Have you ever had your stoploss hit and then price went your direction? The call option has a defined risk and no need for a stoploss.
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rushN4
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PebbleTrader wrote:Nice video
as i understood it she trades wide Index Strangles with a delta of 5(%) so there is a 5% chance that these Options will be ATM on expiration and that means that she collect the full Premium 95% of the time.
http://www.youtube.com/watch?v=BquDGE9KxZQ
Last edited by rushN4 on Wed Feb 20, 2013 7:30 pm, edited 1 time in total.
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