Stock

January 12, 2009

Trading options questions?

trading puts calls
Trade asked:


Im new to options and i started a virtual account and so far the past week or so ive had great results. Id buy an option by looking at the stock seeing if it will make a nice move up or down then buy a call or put.. and the option would move like 20 - 100% in one day!.. so in real life could i see that same day for a nice 20 - 100% profit?? im trading both in the money and out the money options..
see = sell*

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November 2, 2008

Trading Puts and Calls?

trading puts calls
kristin asked:


Okay, so can you buy an option (either a put or call) and have no actual stock in that option, then wait till someone with stock needs to purchase your option in a hurry ro save their butt. Obviously, you would have to anticipate the stock in which you bought the option to either rise or fall to put stcok holders in a panic in order for them to pay you for your option. I had a classmate in finance that was making an average of $2000/day but had to slow down b/c it was too stressful and time consuming. But anyway, can you be the ‘middle man’ and just hold on to these options untill someone is willing to pay you fro them. Then that person would have to exercise that option with the Original writer (the person that I would have bought it from). Is this scenero realistic??

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November 1, 2008

What do day traders do? Do they seek lows and highs of a day do they hold stocks for several days sometimes?

trading puts calls
skahhh asked:


and or do they short or buy puts and calls? What is the defined rate and trading strategy of a day trader? Do they look for news or how fast a stock is rising? What?

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Option Trading?

trading puts calls
mimi asked:


I think I understand the basics of option trading like calls and puts. What I need help is why an option May put has a strike price of 55 when it’s underlying stock is at 52.03 in Feb? Isn’t the put for buying it down?

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October 30, 2008

How to know if there is a large number of “put or call options” on a certain stock?

trading puts calls
techzone12 asked:


If I am watching a stock, is there away to detect insider trading?Can I predict it by just looking at the volume (unusual volume)?.
Also how do I find out if there is a large number of “put options” on a ceratin stock?

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How many days at least before expiration would you buy a call or put of a stock that’s as volatile as AIG now?

trading puts calls
Ivan K. asked:


I just want to know if there are still plenty of people who try to get in even though there are only maybe 4-5 days to expiry.

Would you exercise 1 Oct 3 call (AIG) and it’s 1 dollar on expiration date or sell to close the call? (assuming AIG is trading at 3.86)

Thanks.

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October 10, 2008

Put call parity

bionicturtledotcom posted video:


Put call parity derives from the idea we can have two portfolios (one with an option, the other with a put) that have identical payoffs regardless of what happens to the stock. This gives a way to link the value of a call option with a put option.

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October 9, 2008

What is a good options play for a beginner. call or put? stock choice?

trading puts calls
chucks72 asked:


I am all set to trade but I am having a hard time pulling the trigger on the first one. I have a few stocks in my account, but I really want to give options a try. Thanks.

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October 5, 2008

How do I report option gains or loses?

trading puts calls
mgm00056 asked:


I traded options in 2006. I.e., I bought and sold calls and puts without owning the underlying stock. My net for the year was a loss of about $1200. Can I report this loss on my 2006 tax return? If so, where?? Thanks.

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