Understanding Option Of The Spread Money
Yes, a professional non-market day trader with stock options and stock options for the swing I understand you have the option to use the spread in the wild days of confusion can make money. While I work in the office almost every day because I am always the possibility of normal to do what I do.
While my "hold and keep" stock portfolio has suffered during the recent plunging market, I have been able to soften the blow my making some very nice huge percentage gains in my stock option trading account on almost a daily basis.
While China's stock options trading strategy seems to be naive trading my professional success is undeniable. I raised an average of 40% of the day, a few days, the wild fluctuations in the market. While this wild market, I continue to think that this is a good strategic choice of the average transaction time can be a part of his office.
This is how I have been able to make some very significant money trading in the options world. First I only trade 2 stocks in my options trading account. The reason being that since I am doing this while I doing my normal job I dont have time to really follow more stocks. As one really needs to understand the stock, almost be at one with it so you know how it will react when the market plunges or skyrockets. To understand the stock I study how it reacts to the extreme market activity with in its trading range. As an example lets say I am trading a stock A. I need to understand that when the market plunges 200 points "A" usualy goes down lets say 2% or 3 % and whne the stock market goes down 500 points it usually goes down lets say 5 to 7% and then does about the same to the countering up moves in the market. I dont really care about earnings etc but I make sure my 2 stocks are not carrying any special baggage that would influence their movement outside of the market swings ie. the bank stocks etc.
Once I understand how these 2 stocks reflect the market activity I then study their trading range.Lets say that during these will swings the stock trades between 57 and 63 roughly. I then study the corresponding options lets say 57.50 or 60's. I have really learned in the past month that the volume on these options is very small. As an example I might buy a small number of options, lets say 5, on a fortune 100 company and I am the only one trading any options for the entire day. I am very amused to see that my buy or sell price is duly noted as the high or low with a my volume of 5 options. However one must be very careful to understand the the real significance of the bid and ask spread when you are developing your options trading strategy. This spread has little or nothing to do with the last trade price as the market may well have soared or plunged way past the last activity price.
As for the choice I like my stock options, I basically use of communication options, there is a deadline for at least a week, feel more comfotable in a month. I would also like to make a call or put option is a little money. If the significance of the low-end stock tading activities can be said to be 58 years old, I usually buy the 57.50 call.
Maybe I am totally naive or just lucky but with todays markets I find trading stock options based on my method gives me one or 2 opportunites every trading day to play this strategy.The key if to truly understand how the stock you are playing reacts to large movement in the general market.
All in all, I let the market drive the stock price fell 2 or shares, I very closely. When the stock market has also driven a significant increase or decrease, and then I choose to trade on the basis of the stock market's trading range, I see the development of the stock and its response to the huge mobile market. This work very well for me, but one must be able to have a computer, real-time stock market moves into a warning.
While my "hold and keep" stock portfolio has suffered during the recent plunging market, I have been able to soften the blow my making some very nice huge percentage gains in my stock option trading account on almost a daily basis.
While China's stock options trading strategy seems to be naive trading my professional success is undeniable. I raised an average of 40% of the day, a few days, the wild fluctuations in the market. While this wild market, I continue to think that this is a good strategic choice of the average transaction time can be a part of his office.
This is how I have been able to make some very significant money trading in the options world. First I only trade 2 stocks in my options trading account. The reason being that since I am doing this while I doing my normal job I dont have time to really follow more stocks. As one really needs to understand the stock, almost be at one with it so you know how it will react when the market plunges or skyrockets. To understand the stock I study how it reacts to the extreme market activity with in its trading range. As an example lets say I am trading a stock A. I need to understand that when the market plunges 200 points "A" usualy goes down lets say 2% or 3 % and whne the stock market goes down 500 points it usually goes down lets say 5 to 7% and then does about the same to the countering up moves in the market. I dont really care about earnings etc but I make sure my 2 stocks are not carrying any special baggage that would influence their movement outside of the market swings ie. the bank stocks etc.
Once I understand how these 2 stocks reflect the market activity I then study their trading range.Lets say that during these will swings the stock trades between 57 and 63 roughly. I then study the corresponding options lets say 57.50 or 60's. I have really learned in the past month that the volume on these options is very small. As an example I might buy a small number of options, lets say 5, on a fortune 100 company and I am the only one trading any options for the entire day. I am very amused to see that my buy or sell price is duly noted as the high or low with a my volume of 5 options. However one must be very careful to understand the the real significance of the bid and ask spread when you are developing your options trading strategy. This spread has little or nothing to do with the last trade price as the market may well have soared or plunged way past the last activity price.
As for the choice I like my stock options, I basically use of communication options, there is a deadline for at least a week, feel more comfotable in a month. I would also like to make a call or put option is a little money. If the significance of the low-end stock tading activities can be said to be 58 years old, I usually buy the 57.50 call.
Maybe I am totally naive or just lucky but with todays markets I find trading stock options based on my method gives me one or 2 opportunites every trading day to play this strategy.The key if to truly understand how the stock you are playing reacts to large movement in the general market.
All in all, I let the market drive the stock price fell 2 or shares, I very closely. When the stock market has also driven a significant increase or decrease, and then I choose to trade on the basis of the stock market's trading range, I see the development of the stock and its response to the huge mobile market. This work very well for me, but one must be able to have a computer, real-time stock market moves into a warning.
About the Author:
TheScienceOfTrading.com provides 90 free minutes of videos on option trading systems and provides a complete and detailed learning to trade options for beginners to experts.
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