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Re: [RT] OPTIONS: Predicting Liquidity

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point well take
example
how many people would love to day trade goggle?
instead of spending   300000 to make 2-3000   for the day
you buy 10 of the in money calls(on a pull back
and sell when you are ahead   1-3000
Ben
----- Original Message -----
From: mr.ira
Sent: Sunday, July 10, 2005 3:08 PM
Subject: Re: [RT] OPTIONS: Predicting Liquidity

Once again it all depends on what the option buy was for.  You bought options to use in an outside combination.   You took in your shorts and left the longs to spread against again after the movement of the underlying.   That is the problem with general statements.  When things are taken out of context or not completely defined. 
 
What about buying options as a surrogate for the underlying.  You are a lot better off buying an option that is 5 points in the money then the underlying at $95, $150 or $300.  There are reasons to short options and there are reasons to be long options.  There are methods to do each profitably.  Once again knowledge is power only if you know how to use it. 
 
Ira.
----- Original Message -----
From: Ben
Sent: Sunday, July 10, 2005 11:40 AM
Subject: Re: [RT] OPTIONS: Predicting Liquidity

Dave
before you start trading options,
make believe the money you are about to trade is LAS VEGAS money
in all the years of trading I found that option buying is only 20% success
option selling is 80% success
Ben
----- Original Message -----
From: "Dave" <trading83@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, July 10, 2005 1:30 PM
Subject: [RT] OPTIONS: Predicting Liquidity


> Hello,
>
> I am going to trade options that are close to at-the-money with 30-60 days
> to expiration.  If price movements are not positive, I will sell 10-20
> days
> before expiration.
>
> With that objective in mind, what is the best way of estimating which
> options are likely to have enough trading liquidity to be able to exit the
> trade in the timeframes above?  Are there any rules of thumb, calculations
> or past experience indicators that work well?
>
> Thanks in advance - Dave
> Trading83@xxxxxxxxxxx
>
>
>
>
>
> Yahoo! Groups Links
>
>
>
>
>


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YAHOO! GROUPS LINKS 



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