Monday, February 27, 2017

options from quora notes

option writing to eat premium decay is the best way to make money, however your profit will be less but you can sit back without worries as they will certainly fetch you gains.
short OTM CE and OTM PE of slow moving stocks and at the end of contract of they stay OTM you will get profits.

2

Apply long straddle strategy where you can see movement in the first half of the month. Apply Short Straddle in the stocks where you see consolidation happening in the later half of the month. The premium falls sharply in the later half of the month.
You can apply long straddle strategy 4–5 days before the quarterly result and sell a day before the result. Stock moves before the result and premium also gets high.

http://www.theoptionsguide.com/long-straddle.aspx

https://tradingqna.com/t/what-is-itm-atm-otm-in-option-in-the-money-at-the-money-out-the-money/1293/4

http://www.investopedia.com/articles/active-trading/021014/options-basics-how-pick-right-strike-price.asp

https://tradingqna.com/t/what-is-itm-atm-otm-in-option-in-the-money-at-the-money-out-the-money/1293/2

http://www.optionsuniversity.com/blog/difference-between-in-the-money-itm-out-of-the-money-otm-or-at-the-money-atm/

http://www.optiontradingpedia.com/at_the_money_options.htm
https://www.fidelity.com/viewpoints/active-trader/options-expiration-date

http://www.crbtrader.com/trader/v07n05/v07n05a02.asp

http://www.finalstopinvestor.com/Guide-To-Investing-In-Options/How-To-Pick-The-Right-Option

https://www.tradeking.com/education/options/top-10-option-trading-mistakes
 option sell is good for with time decay
otm is cheap and good return than itm atm
nearest otm, atm, itm is good
deep in the money out money all are costly and cheap accordingly,  but less profit, high risk
cmp is higher than strike is call in the money
strike is higher than cmp  is put in the money
sameprice and strike is at the money
others in opposite side is out of money




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