What Option Strategy to pick ?

Discussion in 'Options' started by gvphubli, Oct 12, 2016.

  1. gvphubli

    gvphubli

    Hi,
    I am trying learn options through paper trading, so if you want to really help use basic terms and spell them fully.

    If I think XYZ stock will go up, by about 10% in next 10-30 days and if it doesn't go up - I will get rid of it at the end of 30 days - in such situation what options strategy to apply/follow - just give the Strategy name - I will read online.
     
  2. lindq

    lindq

    http://www.cboe.com/strategies/default.aspx

    (See Beginners Strategies)

    Buying a call is the most basic long-strategy. Study time decay, and keep in mind that even a 10% move over 30 days may not bring you a profit.
     
    Dolemite likes this.
  3. Dolemite

    Dolemite

    Lindq is right. Spend some time on the CBOE website, they have a ton of free educational material.
     
  4. newwurldmn

    newwurldmn

    it depends on how much you think the stock can go down and how much the options are implying.

    there's not enough information to determine a decent options structure.
     
  5. Jones75

    Jones75

    Part of trading is pressure, which can't be learned paper trading. Trade one call or one put at a time, and when the tiny money starts rolling in, (meaning you get it) expand.

    Good luck!:)
     
  6. gvphubli

    gvphubli

    thank you all - will start reading - "Beginners Strategies" and do what "Jones75" has suggested.
     
  7. Bekim

    Bekim

    Calendar, diagonal, butterfly, bull call spread, calls, its a bad idea to buy just calls 90% of the time.
     
  8. Gimpyron

    Gimpyron

    :)
     
  9. A long-dated ATM strangle on the ES is good

    selling a single deep in the money delta 10 put on ES that expires in 100-150 days (don't use too much leverage)

    go long UPRO and short ATM ES calls that expire in 150+ days to keep the delta close to neutral.

    short UVXY and short out of money ES call.

    tons of strategies