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Guy,
try suscribing to
www.optioninvestor.com
I have been reading them for months and really helped a lot to my learning
curve. Interesting educational articles and recommendations on buying basic
options to advanced strategies. I have no commercial relation with OI other
than the one an ordinary suscriber has, by the way.
www.optionadvisor.com (from Schaeffer´s Research Service)
They provide several newsletters I am testing to see if they are
"followable". Many newsletters propose plays that are hard to follow,
specially their big returns. Nevertheless they are helpful as they bring
lots of insight. I have no commercial relation......
Do not go too fast as you will find options are harder to understand and
operate than futures and equities are. Besides, there is no free lunch and
as profits come faster so do losses.
Options will certainly help you as a tool to diversify. Just go slowly in
this slippery market.
Good trading,
Nicolas
Buenos Aires, Argentina
-----Mensaje original-----
De: Guy Tann <grt@xxxxxxxxxxxx>
Para: Metastock User Group <metastock-list@xxxxxxxxxxxxx>
Fecha: Lunes 19 de Junio de 2000 16:12 PM
Asunto: Selecting options or writing uncovered options
>List,
>
>Well, here I come again from our normal position of ignorance.
>
>We're planning on getting more involved with options. For our next sell
>signal that could arrive any day now, we plan on writing SPX Calls and OEX
>Calls in addition to buying SPX and OEX Puts. We have very little
>experience buying options and have had beginners luck with our first 5
>trades. Now we're going to get a little serious here and try to make a few
>bucks.
>
>We've each budgeted $10,000 for buying options and another $10,000 as our
>exposure writing options.
>
>Now, I'm busy reading my option book, like a good little student. Since we
>lucked out with our previous trades we're feeling overconfident. :) I do
>have a question regarding buying options (since I haven't gotten to that
>chapter yet):
>
>How should I select what option to buy? Currently I select 'in the money'
>options and look for option months that have a pretty large open interest.
>Is there a formula or a decision process we can apply to pick the right
>option month?
>
>In terms of writing uncovered options, my question is basically the same.
>How do we determine which options to write? I guess, even more important
>is, do we write options that expire out 3 months or would we write the near
>month options? Again, since we're short term traders and will probably be
>buying these back before they expire, my guess is that we should write the
>near month.
>
>Additionally. my idea is that we should write 'in the money' options with
>pretty good open interest. Again, I'm sure there is a methodology
somewhere
>that would help us make a semi-intelligent decision.
>
>Any recommendations or thoughts would be appreciated.
>
>Thanks,
>
>Guy
>
>Paranoia...you only have to be right once to make it all worthwhile!
>
>
>
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