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John:
I want you to know that I enjoy and use your S&R work every day.
Thanks for your help.
Baa-baa
Steve
>>> "Dr. John Cappello" <jvc689@xxxxxxxxxxx> 12/28 12:31 PM >>>
First post on this did not appear and thought it might be of interest to
some
>To List:
>
>Recently came across this and hope it is OK to post before I get my friend
>Mark's approval.
>
>Option trading-
>
>Review the market each day to find which are in a high state of
>volatility.If the current implied volatility is greater than that market's
>historical vlatility,it means those options are "more expensive",relative
>to the norm for that market.In effect we can sell "overpriced" options.They
>are overpriceed relative to historical pricing.
>
>Next we look at the price of those options compared to the Black-Scholes
>option pricing model.We sell the option only if it is trading at a minimum
>of twice its theoretical value.
>
>Lastly we sell an option only within 60 days of expiration which means it
>is in its most rapid period of time decay.
>
>80% expire worthless and 20% do not from what I have seen.The person who
>is teaching me this ran up a test account from $3500 to $16,000 from
>April,'99 to now.
>
>Sincerely,
>
>John
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From: "Al Taglavore" <altag@xxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Cc: <metastock@xxxxxxxxxxxxx>
Subject: [RT] Re: HeatMap Case Closed, Learning
Date: Tue, 28 Dec 1999 14:19:30 -0600
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Status:
This is a class response. Let's all learn a life 'lesson' from this.
Al Taglavore
----------
> From: Gitanshu Buch <OnWingsOfEagles@xxxxxxxxxxxxx>
..............<snip>
> Taking this opportunity to once again publicly thank Mark for sportingly
> responding asap (my English Grammar teacher would kill me right here) -
and
> apologize to him for insulting him publicly before having given him the
> opportunity to explain what was working on his mind privately.
>
> Case closed, lets get back to figuring out if the Semis will do as well
in
> Jan as the Biotechs have done in Dec.
>
> Gitanshu
>
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