How Can I Use Options To Capitalize On A Pre-Open Move?
Yesterday a stock dropped 21% during premarket trading due to an earnings "miss". I wanted to buy a put option figuring it would increase 450% in value as the stock…
Answer!
The Problem With Option Limit Orders.
Today Don G. states, “I don’t like to place market orders because I always seem to pay more than I should. However, when I place a limit order I rarely…
Robert states, "My question regards the assignment of options. I'm not exactly sure how the dynamics work and how to determine if I'm in danger of being assigned. Suppose I…
Rick S. asks, "I have seen you post comments that refer to "rolling" positions the week of expiration. What exactly is that?
If The Stock Option Liquidity Is Poor, Can I Get Screwed Out Of Profits?
Let's say I've picked a very liquid stock (1 million shares average daily volume) with little option liquidity. I've bought 10 contracts for $3.00 and there isn't any buying or…
Doesn’t Stock Option Trading Require The Use Of “Greeks”?
Why don't you talk much about the Greeks?
How Do Market Makers Pin A Stock Right At The Strike Price During Option Expiration?
Can you explain how Market Makers manage to keep a stock flat lined right at a strike price on options expiration day?
The Options On NWS Are Unusually Priced. Is This A Covered Call Opportunity?
I am having trouble understanding exactly how non-standard options trade. For example, there is a non-standard option trading on NWS for January VJCAE that is for 200 shares of NWS…
How Do I Determine A Spread Price?
Today Jackie V. states, “I traded a bull call spread of the Russell 2000. I purchased the 710 Dec Call and sold the 720 Dec call. It is trading @…
Will Penny-size Option Quotes Help Traders?
Today Joe M. asked, “What are your thoughts on exchanges quoting options in pennies instead of nickels and dimes? It seems like it should narrow the spread.”
Exercise, Assignment and Spreads
Today Rick W. asks, “I don’t understand what I’m supposed to do when I have a spread and I get assigned on one leg of the trade.”
Today Paul sends the following, “I really want to understand option volatility. I have looked at it from every side and have even subscribed to sites that compute volatility, but…
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Resources
Option Trading Q & A
- How Can I Use Options To Capitalize On A Pre-Open Move?
- How Can I Get An Entry Level Position Where I Can Learn How To Trade?
- How Should I Approach High Implied Volatility Stock Options?
- The Problem With Option Limit Orders.
- How To Get In When You Can’t Be Around.
- What Determines An Option Bid/Ask Spread?
- Option Credit Spreads - Where Should I Place The Stop Loss?
- Front Month or Back Month Options?
- How Does Assignment Work?
- Do You Ever Pivot From Long Put Options To Long Call Options?
- Option Trading and Risk Management - What Approach Do You Use?
- “I’m Reading A Course By Bernie Schaeffer. Is it a Waste of Time?”
- In The Money Or Out Of The Money?
- How Do I Handle A Losing Out Of The Money Option Trade That Has Lots Of Time?
- Covered Calls - Should I Roll Up and Out?
- What is The Best Approach To Option Trading If You Only Have $5000?
- “Rolling” An Option Position
- How Can I Exit This Option Trade Without Getting Whipsawed?
- If The Stock Option Liquidity Is Poor, Can I Get Screwed Out Of Profits?
- Surrogate Market Positions - How and Why?
- Which Option Strike Price Should I Trade?
- Why Are VIX Options At A Discount?
- Can You Help Me Exploit The Delta Of An Option?
- How Do I Get A Good “Deal” On A Stock Option?
- Which Option Trading Arbitrage Strategy Is The Best?
- I’m Faced With An Ill Liquid Market? How Can I Keep The Market Maker Honest?
- I Need to Know When I’m Assigned. Why Is Option Assignment Notification So Screwed Up?
- Why Aren’t Index Options Listed On This Popular ETF?
- What Do You Think Of A Covered Call Stock Option Trading Strategy That Uses LEAPS?
- Doesn’t Stock Option Trading Require The Use Of “Greeks”?
- Can I Make Stock Option Trading Profits If The Stock Moves Just A Little?
- The Market Is Going To Crash. How Can I Make Money Trading Options?
- How Do Market Makers Pin A Stock Right At The Strike Price During Option Expiration?
- A Can’t Miss In-The-Money Call Credit Spread!?
- Is There An Option Broker That Will Adjust My Option Bid Based On the Stock?
- Which Option Pricing Model Should I Use To Calculate Implied Volatility?
- Where Can I Find Stock Option Charts For Technical Analysis?
- Option Credit Spreads Gone Bad - Buy In The Short?
- What Is An Option Box Spread and How Does It Work?
- Can An Option Trader With A $100k Account Consistently Make $500 A Day?
- What’s Your Opinion Of This Option Trade?
- The Options On NWS Are Unusually Priced. Is This A Covered Call Opportunity?
- Option Trading Idea - Expiration Strangle
- Does Your Option Trading Use Straddles or Strangles?
- How I Trade Options - A Seasonal Example!
- Descending Triangle Formation - When Should I Enter?
- What Does It Take To Be A Full-time Trader?
- Where Should I Turn For Option Education?
- Why Use The SPY As A Market Gauge?
- How Do I Determine A Spread Price?
- Naked Put Writing And The “Big Hurt”.
- How Much Should I Expect To Make A Year?
- Index Trading vs Individual Stocks
- Will Penny-size Option Quotes Help Traders?
- Exercise, Assignment and Spreads
- Implied Volatility
- Hedge Or Bail?
- Hedging Option Positions
- Profit Management
- Is Covered Call Writing Risky?
- Protective Stops
- Debit Spread or Credit Spread?
