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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: jdx who wrote (15869)9/30/1998 2:56:00 AM
From: Jenna  Read Replies (2) of 120523
 
I enter positions that are in the money or deep in the money. I almost never trade an option that I haven't traded before. I'm getting used to the way CMGI, and ELNK trade options althugh it is not the same fast market as AB Watley.,.. It is better than shorting stock..an uptick is required in order to establish a position..I just go right in and buy with no prerequisites... I've got a pamphlet from Bernie Schaefer explaining the different option and the gains from 1/2 point 2/3 etc. I also subscribe to the Value Line Option Survey...

I only trade the current Month unless it is near the end of the month. The Schaffer book tells you how much a a profit you have and want.. For instance if your 75% option profit it tells you to get 3/4 of a point or more on the stock...etc.

Basically having an option search module can help you find find options answering your own preferences. You can choose high volume, large amount of movment of stock when options moves X up etc. ''

You can also check out Option Vue, I don't have it but that is because I don't really think of myself as an option player. More of a technofundamental analyst.. Options are just the vehicle. The real analysis is done on the underlying.

I trade an option just like the underlying. I check volume but I don't analyse the option itself with any other indicators. I like options attached to a story stock, whether an earnings related story or affiliation or contract.

You need to have a program that will build an option model for yourself.. You need to measure all the variable that control the price of your options..then you get into the variable that have greek names; Delta, Theta, Rho and Vega. and Gamma which measures the delta. Since I don't bother to compute this I have a program called "options search" by telescan that gives me the delta, theta, roh and vega.. I fact I can Give the Software my own vega, delta parameters and they can find that option with these parameters. Sometimes you plug in high volatility low gamma,, etc.. The models are helpful.
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