Newbie

LoL ! Sorry, I wasn't clear about it. What I meant to say is, when earnings are reported before market opens, the price goes up, BUT when I look at my ameritrade streamer, the price of the option is unchanged. So that is why I ask this question.
 
Quote from nirav34:

LoL ! Sorry, I wasn't clear about it. What I meant to say is, when earnings are reported before market opens, the price goes up, BUT when I look at my ameritrade streamer, the price of the option is unchanged. So that is why I ask this question.
More...

Well, options don't trade premarket, but rest assured that when the market opens the market makers will open the option prices so that there's no easy money.
 
Quote from MTE:

What does your logic tell you?

If it was that easy, don't you think everyone would be doing this!?
More...

Be nice please, I am only trying to figure out the rules of the game. I know I should be reading books, etc. But I will learn that in University. I just wanted some feedback from people who actually have traded options. Thanks.
 
Quote from nirav34:

Be nice please, I am only trying to figure out the rules of the game. I know I should be reading books, etc. But I will learn that in University. I just wanted some feedback from people who actually have traded options. Thanks.
More...

Sorry, didn't mean to be rude.

Here's the best way to approach options, especially if you're a newbie:

Assume that options are priced to perfection at all times, so that there are no arbitrage profits to be made. If something doesn't seem right it means that you're missing something and NOT that you have found a risk-free opportunity!

Use this approach and it will save you a lot of headache and money, especially early on!
 
You'll learn nothing much worth trading with as far as options are concerned in college. Options are probably one of the most "self-motivation required" areas of the market to become successful.

From my experience, you either have the drive to learn options and their many uses, or you don't. It's very difficult to just start talking options in depth, off the cuff, with naive or newbie option traders (again not trying to be condescending here). You have to gain a base knowledge, and then go from there. The material isn't tough to learn, but it is complicated (is that possible? suppose so).

Books aren't just for college. If your quest for knowledge is confined only to the classroom, good luck with your options career.
 
A professional told me that when starting out I should be conservative. Here's the pick.
MARCH 35.00 CALL YHQCG.X 1.05/1.15. YHOO is at 34.07.

What yall think?
 
Quote from nirav34:

A professional told me that when starting out I should be conservative. Here's the pick.
MARCH 35.00 CALL YHQCG.X 1.05/1.15. YHOO is at 34.07.

What yall think?
More...

Let me start with a simple question. Why and how did you decide upon the 35 strike and March time horizon?
 
Algorithm, I have no clue why I picked that, mostly speculation. I was reading about viotility, if ANYONE out there can give me a few links to start reading and learning terms like gama, beta, etc.....I would really appericiate it. Oh by the way, I am going today to get some books on Options, but I have spare time at work so I thought I'd ask if anyone knows any links to get me started. Thanks.
 
Usually not a good choice to buy any options if you haven't based the purchase upon a strategy. At least a little technical analysis of the underlying is needed.

When you purchase that book, read carefully about buying out of the money (OTM) options.


Don't worry, OTM options are usually always the first mistake all new options buyers make.


Now go get that book! :D
 
You must log in or register to reply here.
Back
Top