Herm,
Being even moderately good at "daytrading" into your positions on the day you decide to enter is worth as much as $1 per share. If you look at the intraday price swings on even the low priced stocks we write calls on, you see how important trading techniques are. And I don't mean the true daytrader stuff, where you are hunched over your computer looking to scalp..I just mean knowing when to trade based on how the price/volume is flowing from what you see on your streamer. Its a dynamic thing, and you can hit the tops and bottoms intraday, and predict them reasonably well, even from delayed IQC charts. Combine a real time streamer, and delayed 5 minute charts, and you'll score real well. The real trick, then, is to get good execution through your broker. I just entered my first option trade through Dreyfus, after struggling for two years with Ameritrade. The difference was amazing. Not only did they execute quickly, they confirmed almost instantly. Much more fun.
I am very interested in the views of others regarding the value of complex trading systems, trade stations, even level II information, relative to what we do on this thread with covered calls. Is it really necessary to watch the MMs? If the trend is our friend, and the classic TA indicators work well for us...why mess with all the mind bending analysis? |
