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Strategies & Market Trends
Buying In the Money Options

An SI Board Since September 2000

Posts	SubjectMarks	Bans
21	1	0

Emcee: EasyWay	Type: Unmoderated

Introduction Compact

This thread is for anyone interested in a strategy where we buy 'in the money' options in an effort to double or triple the premium paid. I have dabbled in the options arena with both equities and futures for about 3 years, with limited success, I'll admit. My strategy is to look for stocks that are trending up but have pulled back to support and buy slightly in the money calls, or stocks that are trending down but have rallied back to resistance and buy slightly in the money puts.
Is anyone else employing such a strategy and if so to what degree of success?
Also, my account is now with E*Trade where it costs me $58 to get in and back out of an option ($29 each way). That kind of cost is very difficult to offset, especially with less expensive options. Does anyone know where I can set up an options account where the commissions are more manageable?

Easy :)

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
21	I have all of the Elwave modules, but recommend starting with the basic module a	High Grader	-	10/17/2000
20	What brokerage do you use? I am using E*Trade now but I don't like the rates	EasyWay	-	10/17/2000
19	Oh I see now. Thanks. Interesting.	the options strategist	-	10/17/2000
18	The low on 10/11 was 19 1/8 = 19.125. Action below that should not happen, if	High Grader	-	10/17/2000
17	High, I was asking how did you come up with the no. 19.125?	the options strategist	-	10/16/2000
16	If the price dropped to 19.125 it would signal that the EW count is incorrect, a	High Grader	-	10/16/2000
15	Thanks HG for that excellent detailed explanation. So ... the "spread zon	the options strategist	-	10/15/2000
14	JJ here is an example of "Spread Zone" trading that you can follow. N	High Grader	-	10/14/2000
13	Thanks! I've seen that book in the stores but never picked it up. I will giv	EasyWay	-	10/12/2000
12	I will try to put together a complete strategy for spreads as I understand it an	High Grader	-	10/12/2000
11	I have not tried that with equities but I have with futures and again I'd be	EasyWay	-	10/11/2000
10	High Grader, can you give an example of what you just wrote. Thanks. jj	the options strategist	-	10/10/2000
9	I like to look for spreads in what I call the "Spread Zone." To find	High Grader	-	10/8/2000
8	Spreads are not a bad way to trade depending on how you set them up, however I h	EasyWay	-	9/21/2000
7	easier said than done ... and what kind of spreads are you recommending	Bald Man from Mars	-	9/19/2000
6	Why don't you trade option spreads? Costs less and you know when to get out	High Grader	-	9/19/2000
5	why is it depressing, we still get our health, don't we ???	Bald Man from Mars	-	9/17/2000
4	Yikes! That's depressing. I thought everyone ('cept maybe me) was gettin	EasyWay	-	9/17/2000
3	never have success in anything I do in life, dawn it ...	Bald Man from Mars	-	9/16/2000
2	Thanks, I'll check into it. Do you trade options and if so, any success?	EasyWay	-	9/16/2000
1	I think edreyfus only charges 15 bucks each way ... also I think datek just sta	Bald Man from Mars	-	9/16/2000

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