Alpha Option – Part 1

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30 comments

  1. avatar Markmwright says:

    I have been trading options for some time (years) I notice that all options in the chain don’t move in price the same way.
    I have seen a price go down while prices on either side go up.

    My Questions: Is there an easy way to determine which strike price is best?
    Are there rules of thumb about in, at, or out of the money options with the same expiration date?

  2. avatar Stuart Doughty says:

    I’m interested in your next videos to understanding more about what language of the greeks you will be applying to call option strategies. What’s optimum delta to gain maximum price increase, and what’s the vega number to watch to determine whether to buy calls rhrn, or sell the ones you are holding. Looking forward to hearing an expert talk through the details. thanks Dan

  3. avatar William K says:

    Thanks for the 1st Intro-
    Basic definitions are crucial-
    A thought for one of your next video intros-
    Iam pretty concrete and need specific option chains -actions and consequence-
    Ive looked through the option chains and they seem straight forward but
    Ive read through Cramers Deep in the Money option stategies in getting back to even and I really still have no clue how to actually set up my accounts to make that happen – Perhaps an example pulled right from the chain and hypothetical outcomes might be helpful to the real nubees like me.

  4. avatar Mohan says:

    Hi Dan, Great intro video by the way! Just a question, how is the time value of the option reflected in the option price? Is it a straight forward difference of the stock price and the option price minus the strike price? Eg if the stock price is $100 and the option price is $105 and the strike price is $103, therefore the time value would be $2. Another question- would your format for OMM be similar to SMM ie. a regular video everyday except Friday and a long one over the weekend? Ireflect the same sentiments as the others in this forum, it can get quite complex especially dealing in the time value as well as underlying stock price since we must be right in the direction as well as time component to make money. Thanks!

  5. avatar Ernie K says:

    I have heard about options since I started trading 2 years ago.

    I never understood it, but knew I could invest less and get the same profit.

    Nice intro for me, but I now understand why I didn’t go into them. I think it’s easier to trade than risk options.

    I hope the next few sessions make me change my mind.

  6. avatar Redhawk1 says:

    I started managing my own accounts a couple of years ago, and it is literally the school of hard knocks. I would love to work with others to make money in investing/trading. I love trading and investing. The problem is that few people are interested in working together to make money, sharing what we learn with all so we all make money. Most are only concerned with me, me, me. And so I’m skeptical about the benefit of joining. I guess the question is, “Is this a way for Dan and I to make money together, or is this a way for Dan to make money?”

  7. avatar Yogi says:

    I have trading accounts with Fidelity and Merrill Lynch. Is a small amount of approx $ 5K in each account adequate to trade options? I know I have been approved for the basic options trading, but surely not for selling open calls or selling open puts

  8. avatar Lin says:

    2 questions:
    1. Is it possible to set up the future videos for speed viewing? For those of us who regularly trade options, it would be nice to review the content more quickly.
    2. Will the on-going presentations for OMM be geared toward educating the beginners (no criticism intended, we all started out there!), or will they be weighted toward applying options trading strategies to current trading conditions and opportunities?

    With 8 years of experience trading options, I am very interested in your perspectives on the market and specific stocks or sectors — along with your approach to identifying the appropriate conditions for utilizing specific option trading strategies. If OMM will be more focused on “the basics” for new option traders, it might not be the appropriate choice for me.
    Thank you

    • avatar Gary says:

      Hi Lin. Great questions.
      1. We will have the “fast” version on the videos!
      2. We will cover both basic AND more advanced trading techniques and education. The more advanced trading ideas will be CLEARLY marked so that beginners don’t get confused.
      Hope this helps
      Gary

  9. avatar Sigrid says:

    Great introduction! You are wonderful teacher. I too would like to take the trail subscription, but I can’t find the link. Also, after the trial period how much will the regular subscription cost? Thanks.

    • avatar Gary says:

      Glad you are liking the Alpha Option. We will have all of the costs out on Wednesday when we open up for new members. Remember that we will be increasing the price so Wednesday prices will be the lowest. Once you are a member, your monthly membership rate will never increase 🙂 See you Wednesday. it is going to be fun!!

  10. avatar Benny says:

    Dan, I really like this video, and I love your approach to teach me the option in a simplest way. I have been reading several books and had been attending several option seminars, but so far the best is the way you are teaching. Other courses always assume that the simple knowledge is quite simple so I should not have any hard times understand the basic materials. The truth is just the opposite, even though it appears quite simple, it could be quite confuse once you statrs to trade, especially for the beginners like me. I really like the way that you approach in teaching option, treat beginners like an”idiot” and keep repeating the bassic concepts which I believe that your students will have more solid foundation for them to grow with their knowledges. I hope that I will be able to learn other strategies such as bear call spread; bull put spread and iron condor with you in the future. Thank you for the such excellent lesson.

  11. avatar mark d corso says:

    Thank you Dan for sharing your vast knowledge in all regards to the stock market. You are easy to listen to, never boring and make complex issues within the stock market easier to understand for me. I am a member of stockmarketmentor.com. (Free Site) and fully enjoy listening to your analysis.

  12. avatar Mike says:

    I’m in my 2nd year of Stock Market Mentor and 17th year of hard knocks in the market. It’s very difficult to trade stocks for me as I leave my house for work 2 hours before the market opens and get home 2 hours after it closes with little exposure to the market during the day. Can you use limit orders and stops on options like you can for stocks? Thanks.

    • avatar Josh says:

      Hi Mike, yes you can use limit orders and stops on options. Trading platforms differ on the type of stops available to different option strategies. Things to look for are limit stops and trailing stops on option positions, including spreads.

    • avatar Tim_S says:

      Good morning David,

      On most option trading platforms, you can get the “Greek” information on an expanded screen – not just the delta, but alpha, beta, and so on. My personal favorite is OptionMonster – I find their site to be extremely user-friendly and informative.

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