UL ATR vs. UL Price vs. Option IV for max ROI

Discussion in 'Options' started by Wait4proof, Jan 5, 2013.

  1. UL ATR vs. UL Price vs. Option IV for max ROI

    Some stocks make much bigger percentage moves compared to others from day to day and week to week. Some stocks are $20, some are $200, and some are $400. And then there is the Option Smile and/or Skew with all of the different OTM, ATM, and ITM choices.

    Where is the sweet spot?
    (I mean as it relates to max ROI)

    For instance, I was very impressed with my CALL profits with AAPL compared to F.
    I had 1-APPL contract... ONE... and it made great money.
    I was surprised, shocked actually.
    With F, I had 60 contracts slightly OTM and it still made good money, but I was not as impressed.
    (note: "surprised" and "not as impressed" are purely subjective on my part - no math to back it up)

    So, since this question is really all about BS calculations...
    Has anyone here taken the time to plug-in all the different variations?

    Do expensive UL's make better returns?
    Or, was my observation with AAPL just: "subjective"?

    Thanks