DMOBRIEN
363 posts
msg #97994
- Ignore DMOBRIEN |
12/14/2010 5:57:03 PM
Would someone skilled in options trading be kind enough to provide me with options trading resources - books, websites, trading platforms. Looking for an accelerated learning curve if possible.
TIA
Dave
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straken
469 posts
msg #97997
- Ignore straken |
12/14/2010 9:07:00 PM
Dave,
I've been trading options for so long I cant recommend any books or classes that may benefit you for so many are just plain bs. One thing I can recommend and you should take very seriously is having the proper tools in which to trade them such as a real time option scanner that gives you recent call and put flow as well as historical and implied vols.
There is no filter nor indicators that will give you everything you need to be successful at trading options. Option value depends not only on price but also its volatility vs historical vol and supply and demand as well as liquidity. You will need to clearly understand the option greeks as to what strategy you will want to deploy.
Many people start trading options by with only level 2 having the ability to buy calls and puts but not contract writing permissions. This is throwing your money away. You will need call writing ability to deploy most profitable strategys, and if you have the margin or account strength the ability to sell naked is a must. Be careful as many discount brokers will not allow.
Any option trade can start with buying calls but may end up with 5 legs to secure profits and sometimes you will have to roll positions into the forward month ILO taking a loss.
I believe livevolpro still offers a free trial for a month. If so sign up, watch some of the movies and demos and follow other well known option traders on stocktwits or twitter. You want to learn why they are making the trades they are and several will point out what they see and why they are making the moves they are. Livevol also has a blog but there are many blogs such as whatstrading and optionsinsider but the ability to research the trade and the vol at the time of the trade is a must. Options are a very lucrative way to multiply gains of 400% in a few days but you can lose all of your premium if the option turns against you. Please do your research and get the proper education of trading software and paper trade until you are sure you have a firm strategy for profit. The reason most people do not profit from options in a bull market is they buy on volatility spikes and do not watch carefully the amount of theta decay.
HTH
Jack Straken
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sierraseller
23 posts
msg #97998
- Ignore sierraseller |
12/14/2010 10:16:12 PM
A few thoughts. I've been trading options pretty much full time.for 4 years and belong to several option trading groups.
If you find this helps I'd like to ask you to explain the logic in a few of the filters you've posted; my email is sierraseller@gmail.com
INMHO. in best, is first, order.
The three platforms to consider are 1. Thinkorswim; 2 Options Express 3 Option Monster.
Courses vary in focus and quality. The CBOE (cboe.com) has a wealth of free archived webinars on the basics and the popular trading strategies. One thing to think about is which kinds of trades you expect to do. If your thought is to do Speculative trades where you expect the price to move as you anticipate then one set of strategies apply. If you plan to do Income types of trades where the idea is to primarily capture Implied Volatility, Gamma and Theta and price movement is secondary, then another set of strategies apply.
A tour of CBOE and quick review of a few webinars on the basics should help put a basic perspective together.
Good education is expensive. Dan Sheridan offers a mentoring course focused on Income trading. Charles Cottle (Risk Doctor) and Discover Options (OptionVue.com) offer courses that cover both Income and Speculative approaches.
Options are complicated and take more than a weekend study to get competent; so be patient.
Here's some links:
http://www.cboe.com/LearnCenter/default.aspx
http://www.sheridanmentoring.com/
https://www.thinkorswim.com/
http://www.optionsxpress.com/
http://www.riskdoctor.com
Hope that helps
Bill (sierraseller)
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wkloss
231 posts
msg #98000
- Ignore wkloss |
12/14/2010 10:36:45 PM
Dave,
I agree with almost everything the 2 previous posts say but what you didn't tell us is why/what you are trying to do with options. Wanting to trade options is almost as varying as wanting to buy a shovel...do you want to dig a hole or rob a liquor store with it? Options offer that much variety. I was a student of income style options trading. As one of my fellow students said, you can make a small fortune...just not now. Volatility is/has been too high since the economy went bad and income trading is only for the best traders during those years.
Callwriter.com is good and I have heard good things about radioactivetrading. I suggest you start with a good (whatever that is) basic website that offers free education and get a feel for higher level strategies. Sell covered calls and perhaps move into replacing the stock with options with an option with a delta of 80-90 about 6 months out but only if the website gives instruction on that strategy.
Thinkorswim has great education. Optionmonster and several other are good too. I think both offer paper trading accounts.
When you decide whether to trade for income style or directional, ask again.
Bill
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DMOBRIEN
363 posts
msg #98002
- Ignore DMOBRIEN |
12/14/2010 11:24:06 PM
Outstanding! Have to start somewhere ... Thank you for your generosity of time and thought. FWIW, Bill I will try to explain any of the filtering stuff via email. Let me know.
dmobrien1@gmail.com
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four
5,087 posts
msg #98005
- Ignore four
modified |
12/15/2010 12:37:13 AM
no post
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