Searching for TOP mentoring program in options

Quote from mark trader:

Hi Coach, thanks very much for the explanation, I really appreciate it. I understand how to work the screen now, however have the below questions:

Q1: The greeks from the analyzer screen are diff from the Trade screen. Using GOOG $560 as strike price, the delta from the Trade screen shows .45 (please see attached), I then plugged $560 into the analyzer, it shows the delta is .5375?(please see attached).

Q2: What parameters am I looking for when considering risk/reward? would you give an actual example, so I can apply it to others.

Q3: I now know how to work the analyze screen but don't understand how this relates to actual trades?

Q4: GOOG gamma is pretty much all zeros from the Trade screen?
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Hi Coach, I figured out the answers to Q2 & Q3, just wanted to let you know so you don't need to take time answering them, thanks much for your help.
 
Quote from optioncoach:

ToS gives the dollar value of the greeks which can be confusing. Think of it this way. You have a 510 Call in the analyzer. The price slices give the greeks for the call at different prices whereever you put the slices. Under Mode, you can click on LIVE where it will show the current price of the underlying. You can also move one of the red dotted lines to the strike of 510 to get the current greeks of the position at that stock price.

Now to get the actual greeks divide the dollar value by $100 and then by number of contracts. So at $540 where one of the slices are and close to where the stock price is now ($545). $68.18 is the dollar delta value so divided by 100 the delta is .68 at $540 underlying price.

So to make sure I am not confusing you, first step is divide by $100 per contract to convert dollar value of greeks to actual greek values.

Click on the LOCK word under MODE on the slices and turn it back to live and all 3 will move the vertical dotted red lines to the current price of the stock and give the current greeks of your call.

Ok on the main graph, the green line is the expiration risk/reward profile and the white line is the risk/reward profile for today. In between the white and green lines is the decay that will take the position to its max profit or loss.

As you change the strike price in the bottom simulated section you can see the changes in the risk profile and dollar greeks and the changes in sensitivities. Remember to unclick the lock next to the price of the option you are looking at as that will ensure it lists the current price to buy or sell and does not freeze the price at the $53.60 you have there.

Get familiar with this page as we can use it next to look at decay in your position. This analyzer is the best tool to understand the greeks. After just a week playing with this you got what you need to know to move into strategies.
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Hi Coach, attached is my results for exercise 1. My conclusion is probability of success too low and return too low to warrant trading GOOG calls. Please let me know if you think I missed anything in my findings.

Thanks much for your help, I am learning a lot from your postings, I might not always get it the first time, but I get it eventually.
 

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I just came across this thread and am amazed at the generosity of "coach" to provide this wealth of information. I have been trading options for about 2 years now and am still learning. This is invaluable, to be able to discuss and learn from experienced traders.. is amazing.

please continue and thank you!!
 
Quote from mark trader:

Hi Coach, I figured out the answers to Q2 & Q3, just wanted to let you know so you don't need to take time answering them, thanks much for your help.
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Hi Coach, I also just figured out the answer to Q1. I am working on exercise 2.
 
Quote from mark trader:

Does anyone know in TOS Analyzer what is the difference between the probability of expiring and the delta of a particular strike? please see attached.
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I just figured out the answer to this question, so no need to help me with it, thanks!
 
Quote from plan:

go to www.optionaddict.net and watch the guy at work....

He's pretty good and of course it's free!
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How you know this guy is good? I looked at his site. No where it states his actual trades (just a watch list). No p/l, no statement or overview of his performance? He states about "don't believe me, watch me" , but watch where?
All i see is someone writing a blog without any proof. He might be just a small trader with $ 500,-- or less.
Maybe i am missing something here
 
Quote from mark trader:

Haven't gotten any postings from the coach, I guess no more coaching .... thanks for the helped thus far and wish you all good luck!
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Remember I told you I was going out of the country for 4 days and would be out most of the week...

thus no postings since I did not have access to internet really.

How quickly we forget...
 
Quote from optioncoach:

I will be back on later to pick up the pace, I just wanted to lay some groundwork, the rest of the material will go much quicker. The delta discussion was just to get some beginners thinking about delta in the bigger picture. I will finish with some thoughts later tonight and then tomorrow we will discuss theta and next week vega (I will be ouf of the country most of the week so will do my best to keep up).

Also, not sure why this thread is being rated, I am not doing this for ratings or for the general public, only people who are interested, the rest can ignore it as not useful for them.
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:D Just for reference lol...
 
Quote from optioncoach:

:D Just for reference lol...
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Hi Coach, glad you're back! Here is my progress thus far:

1. Papertrade transactions:
. JUL SPY Bear Call Spread
. NDX Iron Condor (from a subscription service that I currently subscribed to)

2. TOS platform: got pretty familiar with the Analyze tab. Got a good sense of the Greeks, however, still don't completely comprehend the extend of their significance

3. Reading Materials: Currently reading Options Volatility from Natenberg, I wanted to challenge myself, to my surprised, I am able to follow along, except a few questions

Questions:

1. Trading Rules: I want to establish a disciplined trading style for myself from the start, so I don't form any bad habits going forward. I am sure as I gain knowledge and experience the trading rules would be adjusted according to my skill level, however what rules should I adhere to at my current level?

2. Risk/Reward: I am now pretty familiar with the mechanics of credit spreads and condors. However, need knowledge on how to find the best strike to get min risk and max profit, an other words premium that gives me the best return based on the risk I am willing to take on

3. Market Experience: From reading your postings on SPX Credit Spread trader, I know you know the market like the back of your hand and this took many years of experience. What advice would you give me to gain market knowledge, what to watch out for credit spreads, condors? what/how to study the market to avoid costly mistakes? I read in your other postings summer is a quite time in the market.... for a newbie, these are the types of things that we don't know about.....

4. Would you please explain "skew" of the indices, which one(s) give an edge to options buyers/sellers and why?

Thanks much!
 
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