beginners help

Discussion in 'Options' started by kalubalu, May 17, 2011.

  1. kalubalu

    kalubalu

    Hello all,

    I just want to figure out what strike price is the right to enter at, and should I gauge the volume of some options to see what other people are buying so I can use that to figure out where I need to enter.

    Also, how does one go about picking which is the right stocks are to trade their underlying options. Thank you and sorry for being the noob.
     

  2. >>>> I just want to figure out what strike price is the right to enter at<<<<

    $45-90 for dinner will give you entry 90% of the time.

    >>>>should I gauge the volume of some options to see what other people are buying so I can use that to figure out where I need to enter.<<<<

    No. Most others are going for fatties with thunderous bottoms. Avoid.

    There are only 2 entry locations. Pick the one that looks like a Volkswagon hood.
     
  3. I see three entry locations...did you forget the pie-hole?
    Spend the 45-90 on booze for yourself and go for the fatties.


     

  4. I would buy 1 strike OTM options on popular stocks. Keep a list of about 50 stocks, and trim that down to about 10 stocks for a watch list.

    QQQ
    DIA
    GOOG
    NFLX
    RIMM
    SLV
    GLD

    I recommend QQQ options to start with because they are cheap, the bid/ask spread is a few pennies or so, and they can pack a lot of punch when the QQQ moves.