Dan —
It would be extremely helpful if you could spend a bit of time in the seminar this Sat. discussing the availability and use of tools (charts, graphs, etc.) in options trading. For example, your discussions concerning Bollinger bands as a tool for analyzing a stock, in terms both of making purchase decisions and of making decisions concerning the setting of stops has been extremely helpful. But how does one go about (if at all) applying a similar analysis to options trading? I am using TDA’s “thinkorswim” platform, and there are all sorts of charts available, but I don’t know what or how to use what’s there. I am willing to put in the time to learn, but it would be very helpful if you could give a point in the right direction with some sort of “overview”.
Related to the foregoing is the issue of “stops”. You have succeeded in converting me to their use, and I now make it a point to never enter a trade w/o placing a stop on the position. However, after having been in the Beta group for all this time, I still have no idea as to what is a “loose” stop and what is a “tight” stop when it comes to options. As a result, I often find myself placing the stop on the basis of where I would place it if the trade were for the underlying security rather than by the expected action of the option (sell “x” of the abc March $50 calls at market when abc is at or below $42). My gut tells me that this is not the best way to go about setting the level of the stop, but as is implied from the previous paragraph, I don’t know how to go about doing it the “right” way.
Thank you for all of the work that you are putting in for us — but please consider a section in the seminar which addresses the “tools of the trade” vis-a-vis options trading.
Dan —
It would be extremely helpful if you could spend a bit of time in the seminar this Sat. discussing the availability and use of tools (charts, graphs, etc.) in options trading. For example, your discussions concerning Bollinger bands as a tool for analyzing a stock, in terms both of making purchase decisions and of making decisions concerning the setting of stops has been extremely helpful. But how does one go about (if at all) applying a similar analysis to options trading? I am using TDA’s “thinkorswim” platform, and there are all sorts of charts available, but I don’t know what or how to use what’s there. I am willing to put in the time to learn, but it would be very helpful if you could give a point in the right direction with some sort of “overview”.
Related to the foregoing is the issue of “stops”. You have succeeded in converting me to their use, and I now make it a point to never enter a trade w/o placing a stop on the position. However, after having been in the Beta group for all this time, I still have no idea as to what is a “loose” stop and what is a “tight” stop when it comes to options. As a result, I often find myself placing the stop on the basis of where I would place it if the trade were for the underlying security rather than by the expected action of the option (sell “x” of the abc March $50 calls at market when abc is at or below $42). My gut tells me that this is not the best way to go about setting the level of the stop, but as is implied from the previous paragraph, I don’t know how to go about doing it the “right” way.
Thank you for all of the work that you are putting in for us — but please consider a section in the seminar which addresses the “tools of the trade” vis-a-vis options trading.
dice