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Strategies & Market Trends : Are you considering quitting your dayjob to daytrade?! -- Ignore unavailable to you. Want to Upgrade?

To: kaydee who wrote (396)	1/23/1999 5:05:00 PM
From: jebj	Respond to of 611

>Say for example I want to buy options on - DBK DB, I wouldn't begin to try to suggest what you should do but as for the part of your question about which play would give you the max return I suggest you go to the following site and download the file that ends in "demo". freeweb.pdq.net It's a "freebie" and, IMOH, is one of the best "tools" for an options beginner I have found for it will give you something like 38 different plays on any stock, the % of likely success, the risks and a ton of other info on the individual plays. Over time - a LONG time - I would assume one would learn much of this and it would be second nature but for a "newbie" I think it is great. Ref buying in/at/out of the money, each has their reasons but a shortterm options player will usuall buy at or in the money. You are then usually close to a 1 for 1 stock/options price change and, with the much larger leverage of options, in a much higher % of profit - or loss :) - on a small move in the underlying stock. As for McMillan's book - that is an excellent place to start, his last one is a much easier read but that one is the "Bible". There is some very good info put out by CBOE as well and several places on the net to get good options training. Ameritrade even has an options game out called Darwin that can be a help to get started. Good luck. jb