Wednesday, March 24, 2010

RE: [TheOptionClub.com] Screening for Strategies

 

Paul and Bill,

 

I have successfully limited my trading to 3 – 4 intruments, with some months trading only 2 of those (March being one of those).  I found the simpler the better and a friend of mine that trades more complex strategies on many different symbols is constantly having to make adjustments.  I put the trade on and generally let it run to expiration.

 

I think you are on the right track, now find the optimum strategy for these symbols.

 

Jeff

 

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Paul Seifert
Sent: Wednesday, March 24, 2010 2:43 AM
To: OptionClub@yahoogroups.com
Subject: Re: [TheOptionClub.com] Screening for Strategies

 

 

Bill I am moving in the same direction for the same reasons.  I want to become good at a few things and treat this as dans says   a business   Best of luck. Pablo

----- Original Message -----

Sent: Tuesday, March 23, 2010 9:27 PM

Subject: RE: [TheOptionClub.com] Screening for Strategies

 

 

I am looking at Dan’s TASC article right now, but the post raises an issue in my mind.

I have looked at a lot of Dan’s stuff, and I have a great deal of respect for his capabilities, (and for his refusal to put ketchup on his hot dogs) but he talks a lot about the fact that his successful students trade the same instruments every month – month in, month out etc. etc.  So if I am going to trade the SPX and the RUT every month, why do I need screening software?  The way I was heading was to pick a couple of large size instruments to keep my commission low, then to pick the strategy based on their behavior.  This is quite different than the “Oh, search engine – find me a nice calendar” approach.  If you use the latter, you then have to do the due diligence on expiration, news etc., which is a big pain in the asset.

I am trying to get good at something, and suffering from TMI, right now.

Bill

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Nick Horowitz
Sent: Tuesday, March 23, 2010 11:17 AM
To: OptionClub@yahoogroups.com
Subject: RE: [TheOptionClub.com] Screening for Strategies

 

www.poweropt.com has a very good screener.  Not sure if it has all those parameters mentioned, but it does have most of them.  They are supposedly adding a double calendar/double diagonal screen soon.

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of RobertH
Sent: Tuesday, March 23, 2010 9:29 AM
To: OptionClub@yahoogroups.com
Subject: [TheOptionClub.com] Screening for Strategies

 

I was reading an interview with Dan Sheridan this morning, and he had a checklist of the specific criteria he wants to see before putting on a particular spread trade. The criteria involves implied volatility skews, pricing of the spreads, open interest in the options, and a few other things. He said that you need stock screening software with options capabilities. Is anyone familiar with software which will screen for spreads, or maybe an internet site?

Thanks,
RFH

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