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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: AK2004 who wrote (31632)	4/9/1998 4:15:00 PM
From: Dchapman	Read Replies (2) \| Respond to of 1573430

The targets are calculated using the option price tool, and are based on a rally of magnitude that is seen about 4 times every 6 months, but that is only valid if you are at the start of a rally.I also use resistance levels for targeting. I dont use complex math even though the target that is calculated for a stock is a program that does seven passes to come up with that target that i wrote 3 years ago, and havent looked at it since. If it works dont mess with it.. Well anyway, using the option pricer i can figure what a normal option should cost(that formula is also a custom thing, not black schoals, better), and yes some options are expensive. What it comes down to is if the stocks is going to move 10 points and I can get the option type that I generally target for $5 dollars or less then i dont care if time+volit premium is $1 or $2 dollars. Im profit based, cause in the end thats what matters, stay focused. A profit of 100-200% is not bad per trade, I used to optimize stuff a while ago, but it hides the real goal you must accomplish plus it gets overly complicated and you dont want to be confused in options trading.. trust me.. enjoy, Dan