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The "it" is it. But what is "it"? An actual calculation is what I'm hoping for (i.e. excel worksheet).

I've read (tried to anyway :confused: ) several articles on wikipedia about option pricing and I want to know how to calculate past time value. Here's what I want to do: At any time, take an option and somehow calculate what it's price "was" X-number of days ago. Is this possible? I...

rew, Thanks for the post. I guess it makes sense that it's just another example of transfer-of-wealth to China and India.

The price of gold is determined by traders buying and selling futures, not by the average Joe buying rings and necklaces at jewelry stores. I get how the price goes up in the futures market. But, I do not get how a dealer in the real world would make a profit if they are the last in the chain...

spindr0, I understand what you mean about percent, but to make the same money would require increasing the number of contracts, which means added liquidity problems and added commissions. ForexForex, thanks for the input. I actually ran a filter on Finviz ($>100, AvgVol>1M, PE>0, Current>1...

Well, I've spent some time watching the L1's of a variety of different priced options (stocks/indexes). And it appears that the higher the underlying price, the bigger the movements in the option's "value". But, it also looks as if liquidity could be a problem, which is what I've been worried...

Happy 4th everyone. Whistlingleaf, sorry, but prayer is not a strategy I will ever have in my toolbox. Ammo, your example with the SPX blows my mind. If that sort of power exists, WOW, are you for real? Of course, I can only assume you are for real based on the fact you have over 10,000...

FYI, my posts are delayed. I guess since I am new. Thanks, JJacksET4, you have definitely helped persuade me that I need to start some price watching. Of course, with all the options in a chain, I could really use some more help with narrowing the field. This goes back to my outlandish...

My "who cares... that's not money" comment refers to liquidity. I should have been more clear about that. Meaning, the mouse can escape from the cage that traps the elephant. So to truly "*compound*" your money, your strategy must also work with bigger numbers. I'll rephrase my comment, "if...

Wow, my topic got a 1-star rating. Okay fine, this topic is lame, or whatever word you would like to use. But... I wish someone would actually help me out, instead of just being negative. I really, really, really need someone to explain a way for me to maximize my profits using options...

I trade stocks and wish to find a way to maximize my profits... So, I'm learning about options. A long time ago, mid 90's, I sold covered calls to make some spare money. That's all the option's experience I have. But, I have heard all the stories (rumors) about how a person can make amazing...