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Whoops. ITM is in the money. Does $2.83 ITM mean it's worth $2.83 more than at the time of purchase (since it was OTM at the time of purchase in this case)? I got confused by what Don87109 said.

and another down day!

I was with you until this point. How do you know it will be $2.83? Yes, that's why I asked for a formula in the first post. So my estimate of it being $700 was way off it seems.

It's hard to quote your posts when you reply in my quotes. lol. How do I know what's noise? I don't. After trying to study price movement for 3+ years, I don't. Price will look like it's gonna go up, then go down just enough to stop me out, and then rocket upward. Noise is the crap that...

Let me see if I have this right. So I'm looking at April 11 QQQQ options. QQQQ is currently at $57.17. Let's say I own 100 shares. Let's say I'm worried that QQQQ is going to drop significantly sometime before April 11, so I buy a put option with a strike price of $53. So the April...

Random entries? Seems like this could generate huge winners if you catch a trend. Do you get stopped out like crazy a lot of the time?

I can neither predict direction or recognize momentum. If I could predict direction I would be a millionaire by now. "Neutral or hedged option strategies", you mean like buying long straddles, strips and straps all over the place? How do you structure your trailing stop so that it...

Oh I see. My thinking was originally something like this: You buy a bunch of stock. It goes up (yay!) But now you're like "crap, what if price goes down? I don't want to sell yet cuz I'm pretty sure it will continue to go higher in the future, but I don't know if it's going to go...

This thread is all about ADDING TO WINNING POSITIONS Do you add to winning positions? If so, do you add smaller positions with each subsequent add? Or equal positions with each subsequent add? Or larger positions with each subsequent add and greatly increase your average cost and run...

Ok that's kinda what i was thinking. I just call it martingaling but I think what I mean to say is "averaging down." I would argue that it's not a losing expectation if your range is big enough and the instrument doesn't go to zero, but I've been doing that throughout this entire thread and...

True, but if you're martingaling efficiently in a choppy market and then it significantly moves against you, you run the risk of blowing your account or catastrophic losses. How is dollar cost averaging different from martingale?

How is that equivalent to owning a long call? The long call chart looks like this: _/ Yes, it loses as the underlying drops. But a long put chart looks like this: \_ Doesn't it gain as the underlying drops? From looking at the option charts, I don't think I'd ever be...

^ so delta is the coefficient of how much the price will change relative to one dollar change in the underlying? Delta of 1 = stock moves by $1, option moves by $1 (so $100)? Delta of .25 = stock moves by $1, option moves by $0.25 (so $25)? Is that correct?

SPY

Why's that?

Is there a software that will do that for me? Like I enter the stock, strike price, current price, and then it tells me what the option will be worth at a certain point in time? I know that the value of the option is somewhat dependent upon time, so maybe like a chart that shows "here's...

holy crap that was a helpful answer. I nominate you for ET member of the year. I also would have accepted this: http://lmgtfy.com/?q=how+to+determine+future+options+price

Ok say you're looking at buying a put option for your stock with a strike price of $40 and the current cost is $3.00. So that means if you bought that put option, it would cost you $300 (option price * 100). Is there a way to know how much that option would be worth if price droped to 45...

Does it do that graphy stuff where you can see your potential profits/losses and percentages and stuff?

Specifically, I wonder if adding to winners AND averaging down can be combined into one super strategy so that if price goes up, I make money, and if price goes down I accumulate a big position and then make more money when it goes back up. And the only possible losing scenario would be if...