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?

I chose F because I don't have enough in my account to choose GG. I need to wait for more shorts to close (this is all papermoney, of course)

thanks!

--- On Tue, 6/30/09, Nava Elgar <nava@gobulls.co.il> wrote:

From: Nava Elgar <nava@gobulls.co.il>
Subject: re: [TheOptionClub.com] how do you pick your options?
To: OptionClub@yahoogroups.com
Date: Tuesday, June 30, 2009, 10:08 AM

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@yahoogro ups.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

__._,_.___

Messages in this topic (3) Reply (via web post) | Start a new topic

Messages | Files | Photos | Links

The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading. All messages and postings, and any materials circulated are provided for discussion and educational purposes only. No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice. All investors are encouraged to consult a qualified professional before trading in any security. Stock and option trading involves risk and is not suitable for most people. There is no guarantee that any information provided is accurate and, may in fact, be wrong. It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student. As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com

MARKETPLACE

How Many Triangles? 92.6% of Americans Fail this Question!.

(1) New IQ Challenge. 92.6% of Americans get this question wrong!.

Mom Power: Discover the community of moms doing more for their families, for the world and for each other