Not yet. Basically, every week I plan to add another factor to watch.
This is a 'watch and learn whilst doing' thing. All input is very welcome.
Regards
Here is what Im looking at for the Monday Open
ALTR
BIDU
CHKP
CMCSA
MXIM
ORLY
Will buy ATM OTM and ITM puts on these in order to compare. Will be looking at the daily % gains or losses as well as total %
Can anyone explain to me how to interpret the delta values given on the TOS...
So here are how things stand at the end of the week...
BAC JAN 12.5 CALL +63.64%
BAC JAN 15 CALL 0.0%
HSIC JAN 55 CALL +30.36%
HSIC JAN 65 CALL -16.67%
MMM JAN 85 CALL +10.77%
MMM JAN 90 Call +9.13%
The ATM 's have performed much better than the OTM 's.
My model suggests time...
Indeed. Thanks for pointing that out.
Also I think I'll start adding daily % moves together with total % moves .
From next Monday an analysis of delta will be included too.
I am currently reading Michael C Thomsett's ''Getting Started in Options''. It is for the absolute beginner and...
so here are how things stand since Monday.
APOL JAN 37 CALL - 25.15%
BAC JAN 12.5 CALL +31.82%
BAC JAN 15 CALL - 10%
HSIC JAN 55 CALL + 51.79%
HSIC JAN 65 CALL + 51.1%
MMM JAN 85 CALL +24.62%
MMM JAN 90 CALL +27.78 %
APOL got crushed today!A 40% profit turned into a 25% loss...
HSIC JAN 55 CALL + 21.43%
HSIC JAN 65 CALL + 83.33%
BAC JAN 12.5 CALL - 31.82%
BAC JAN 15 CALL - 20.0%
MMM JAN 85 CALL - 7.69%
MMM JAN 90 CALL - 12.3%
APOL JAN 37 CALL + 38.97%
The MMM position should be in the + but like the true newbie I am I sold the calls instead of...
Hi traderlux
Good point. I have so far found that ATM offered slightly more psychological comfort. Simply put, I find it easier to to say that "in the not too distant future the price of x will be higher (or lower) than it is NOW"
A good place to start then with this exercise will be to...
At this point in time long calls and puts are all my modest grasp of options will allow. They do not need to be ITM just not too far away from the money...
My thinking is this...
I have a model that has historically worked well in predicting 5 to 10 % moves in stock price over a period of a few days to a few weeks.
Clearly options are the most effective tool to take advantage of an anticipated move in a defined (somewhat) period of time...