Covered CAll Interest

Quote from CoveredCalls5:

Alright keep in mind I am new to all this stuff, could you rephrase all that into a more basic language? 140% this YTD dang! What is your % return? And what are you doing? what does OTC stand for?

Ok butterfly greek exposure, High option OI tickers, Where do I start on learning all this stuff? I want to learn it very well, And I want to learn it right. Where do I start? =)

P.S. Thanks for replies
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146% from Jan 1 to late July. We hit some large winners early in OTC [over the counter] touch-exotics. Not generally available to the retail trader. A large portion of that return was made in the listed-markets via trading in butterflies. OI [Open Interest] refers to liquidity, specifically the number of contracts which remain on someone's books. Look to trade the daily volume leaders.

I'd suggest you buy Hull's Options, Futures And Other Derivatives; and Natenberg's Option Pricing And Volatility.
 
So what is a % of return I could expect back? Something that would be something I could expect on? and maybe have more? 140% a year dang thats like 11.6% every month. Not bad at all! I would be happy with just a 5% every month. I will buy those books! What else can I do to get started on making money? I don't want to rush and loose it all, I want to invest smart, Safe, And have my money grow. =)
 
Quote from CoveredCalls5:

So what is a % of return I could expect back? Something that would be something I could expect on? and maybe have more? 140% a year dang thats like 11.6% every month. Not bad at all! I would be happy with just a 5% every month. I will buy those books! What else can I do to get started on making money? I don't want to rush and loose it all, I want to invest smart, Safe, And have my money grow. =)
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You need the ability to forecast direction or volatility to succeed. Start with one lot positions until you're comfortable.
 
Quote from atticus:

You need the ability to forecast direction or volatility to succeed. Start with one lot positions until you're comfortable.
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Ok what your saying is being able to read a chart and know what its going to do right? Direction and volatility. ..



Lot Position, what strategy in Options are you talking about? Straddling, Butterfly thing? what exacly are you talking about doing with one lot position? =) Thanks
 
Quote from atticus:

146% from Jan 1 to late July. We hit some large winners early in OTC [over the counter] touch-exotics. Not generally available to the retail trader. A large portion of that return was made in the listed-markets via trading in butterflies. OI [Open Interest] refers to liquidity, specifically the number of contracts which remain on someone's books. Look to trade the daily volume leaders.

I'd suggest you buy Hull's Options, Futures And Other Derivatives; and Natenberg's Option Pricing And Volatility.
More...

You're recommending Hull to a beginner?
I'd say McMillan would be far more appropriate.
 
Ya come on boys tell me what to do and get me started. I can accomplish anything I put my mind to, I just need the proper tools and pure (True) foundational teachings and understanding of how everything works on the things that do work. Help me out =)
 
Allow me to reiterate my advice that you should focus on picking stocks first, and tailor your option strategy to the stock second.

There is no single option strategy that guarantees you any level of return. Every single one of them depends on the underlying stock behaving itself in some way.

A covered call is a bet on "not down". Pick an actual stock that you are confident will not drop between now and the third Friday in October, and we can follow a pretend covered call together, and you'll see how it w**ks. You'll also get an idea of what a realistic level of return is.

If you're better at picking stocks that will go "not up", "nowhere" or even "up", covered calls are not really the way to go. You'll need different option strategies. That's okay, you can learn those too.

If there were a simple way to turn $10k into a million in 7 years, we'd all be millionaires. And, y'know, we're not all.
 
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