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PureBytes Links
Trading Reference Links
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Thanks, to everyone for their responses. I have found that the only
way to order this book is through Mr. Toppel's web site.
http://www.samuraitrader.com/
Thanks, again for Eric and John's offer to loan me the book.
Respectfully,
tornado@xxxxxxxx
Alan C.
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| From: Zaheer Bhyat <Zaheer@xxxxxxxxxxxx>
| To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
| Subject: RE: REALTRADERS DIGEST-OPTIONS- MR TROY KELLEY
| Date: Monday, September 29, 1997 12:39 PM
|
| IMHO, an option with a delta of 0.2 has the best leverage, provided
that you have the market direction right, and that you are not
EXPECTING TOO MUCH of the market in too short a time frame, eg. An
option with a delta of 0.2 1 week from expiry is NOT a good buy (but
a good-bye, excuse the weak pun :)), but an option with three months
to run with the same delta offers very limit4ed downside from
movements in the underlying combined with excellent upside gearing.
|
| Try and run some simulations.
|
| I will post some if I find time to do them today.
|
| Happy trading
| Zaheer
|
| -----Original Message-----
| From: ALTAF JUMMA [SMTP:ASHLEYJUM@xxxxxxxxxxxxxxxx]
| Sent: Monday, 29 September, 1997 3:17 PM
| To: RealTraders Discussion Group
| Subject: REALTRADERS DIGEST-OPTIONS- MR TROY KELLEY
|
| HI,
| Mr. Troy Kelley inquired about option delta, etc. - I believe that
delta for
| deep in the money option is 1, for at the money option or slightly
in the
| money option is .5, for out of the money option, it decreases
approaching
| zero for deep out of the money option.
| You are correct in saying that out of the money option offer
greater
| leverage but it has less chance of becoming profitable when buying
| options-deep in the money option offers the least leverage but
greater odds-
| in moat cases, the recommended strategy is to buy at the money
option which
| offers a good combination of leverage and odds.
| For at the money option, a delta of .5 means a profit target of
.5(of 3-6
| OEX points)- Your system has to be very good to make money buying
option
| during the last week of expiration.
| Troy, hope this will help,
| Happy Trading - Ashif
|
|