What Option Strategy to pick ?

[gvphubli]

Hi,
I am trying learn options through paper trading, so if you want to really help use basic terms and spell them fully.

If I think XYZ stock will go up, by about 10% in next 10-30 days and if it doesn't go up - I will get rid of it at the end of 30 days - in such situation what options strategy to apply/follow - just give the Strategy name - I will read online.

 

[lindq]

Hi,
I am trying learn options through paper trading, so if you want to really help use basic terms and spell them fully.
.

http://www.cboe.com/strategies/default.aspx

(See Beginners Strategies)

Buying a call is the most basic long-strategy. Study time decay, and keep in mind that even a 10% move over 30 days may not bring you a profit.

 

[Dolemite]

http://www.cboe.com/strategies/default.aspx

(See Beginners Strategies)

Buying a call is the most basic long-strategy. Study time decay, and keep in mind that even a 10% move over 30 days may not bring you a profit.

Lindq is right. Spend some time on the CBOE website, they have a ton of free educational material.

 

[newwurldmn]

Hi,
I am trying learn options through paper trading, so if you want to really help use basic terms and spell them fully.

If I think XYZ stock will go up, by about 10% in next 10-30 days and if it doesn't go up - I will get rid of it at the end of 30 days - in such situation what options strategy to apply/follow - just give the Strategy name - I will read online.

it depends on how much you think the stock can go down and how much the options are implying.

there's not enough information to determine a decent options structure.

 

[Jones75]

I am trying learn options through paper trading,

Part of trading is pressure, which can't be learned paper trading. Trade one call or one put at a time, and when the tiny money starts rolling in, (meaning you get it) expand.

Good luck!

 

[gvphubli]

thank you all - will start reading - "Beginners Strategies" and do what "Jones75" has suggested.

 

[Bekim]

Calendar, diagonal, butterfly, bull call spread, calls, its a bad idea to buy just calls 90% of the time.

 

[Gimpyron]

Calendar, diagonal, butterfly, bull call spread, calls, its a bad idea to buy just calls 90% of the time.

 

[tradelosses]

A long-dated ATM strangle on the ES is good

selling a single deep in the money delta 10 put on ES that expires in 100-150 days (don't use too much leverage)

go long UPRO and short ATM ES calls that expire in 150+ days to keep the delta close to neutral.

short UVXY and short out of money ES call.

tons of strategies