Options Blog

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riskfreetrading

I want to start an options blog. I plan to cover what I do in my options trading, but if there are topics you think I should cover, could you please say which topics you recommend I cover?

If you want to contribute to the blog, PM me.

Also if you have an options blog, please let me know so I read what you are covering, and consider partnerships if mutually beneficial.
 
option synthetics that even retards like me can handle. I will start off:

call - put = underlying put call parity

long call + short put = long underlying etc

why do I need to know this, or why should an option trader need to know this. give me an example in real trading where this would be useful. thanks.
 
Quote from kinggyppo:



why do I need to know this, or why should an option trader need to know this. give me an example in real trading where this would be useful. thanks.
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This information will not help you <i>often</i>, but it will help and put real dollars in your pocket.

You may want to write a covered call and collect a time premium of $150. But, if you can sell the equivalent put for $145 instead, it will probably be a smarter choice.

Why? You lose $5, but you save the cost of carrying the stock all the way through expiration. Plus you save on commissions.

That's just one, simple, common example that you may find in the real world.


Here's one more: You may want to sell a put credit spread for $200. If you can buy the same call spread for $290, that's $10 better (less interest you pay on the $290).

These are not imaginary. They do occur. You are not required to take advantage of these occasional opportunities, or you may decide it's not worth the effort. But these are two real examples of how understanding synthetics can be profitable.

Mark
http://blog.mdwoptions.com/options_for_rookies/
 
How about describing the reason why the world needs another option's blog? It's obvious the *wow* factor has lost substance.
 
substance is in what an individual writes not in the medium chosen to deliver the substance.

My above understanding of substance is therefore timely and is independent of the medium to deliver it.

I want to write to deliver substance, not to be a blogger.
 
Quote from riskfreetrading:

I did not know that, but I am receiving messages from others.
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It allows PMs but not emails. (At least that's how it worked for me).
 
just like algebra...calls and puts should trade at parity and when they do not there is either oportunity, to make money or get hosed, or to learn something new about the situation...bottom line, if you understand pricing mechanism, you can price a put of a call and vice versa, more importantly if you do not understand the pricing then you are not taking advantage of everything options have to offer and are using them only as leverage
 
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