Option Trading Articles: re: [TheOptionClub.com] how do you pick your options?

Tuesday, June 30, 2009

re: [TheOptionClub.com] how do you pick your options?

Naked put I want them to expire so.... I am checking that both companies that you choose are bullish.
lets that they are.
then I will go to the less risk one .
risk =how much money i need if i am going to get assign/
if we are to talking numbers only so F is less risk. if you put 6 for 0.65
your max roi -0.65 risk 5.35 for 2 con max roi 1.3 risk 10.70.
GG max roi 1.40 risk 31.60

so what do you choose?

Nava elgar

From: "Becki Kain" <anaisdog@yahoo.com>
Sent: Tuesday, June 30, 2009 1:24 AM
To: OptionClub@yahoogroups.com
Subject: [TheOptionClub.com] how do you pick your options?

I was looking at trading GG (naked short puts) for August. It's an expensive option, premium is 1.40 for a 33 put (as of this morning of course). now, you could trade F, 6 august put, make .65 instead and do 2 of them for the same premium as 1 GG. How do you pick in such a situation where you have something very expensive (risk more) vs something relatively cheap? (I hope this makes sense)

thanks in advance

Becki Kain

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