Options Think Tank - is a board to discuss option plays in deeper way by using t/a charts, leveraging, greeks, and call/put ratio to find longer term swing plays that give you higher returns. We would like people to post their thoughts of why the like the stock and what they expect the swing play will do.
1. Chart reads to identify good entry for a significant move
2. Options discussions for leveraged playing, dos and don'ts
3. Understanding/using the greeks to get a better understanding of the return and the erosion of sitting.
4. Using scans for identifying swing plays, bounce plays gap plays and anything else we can find
5 Using scans/charts to identify fat pig plays and timing there moves.
Discuss all time frames, but like the idea of 60 min reads more and more as it's what I really need to do to balance this with work.
Rules:
1. Be kind and respectful
2. Agree to disaggree
3. We are all responsible for our own trades.
Staples Plays:
There are about 10 names that are optionable with an ATR over $5 or have a history of big moves. These are our main staples.
"AD's Bloated Pigs" - if it has more than 10 bil mrkt cap and is selling for more than 10 times sales, it makes the list and I like to play only the down side. This scan was updated to include stocks that have an ATR of + 1.5 which means the stock tend to move $1.5 dollars a day on avg. Helms update. http://finviz.com/screener.ashx?v=211&f=cap_large,fa_ps_o10&ft=4
Exchange traded funds are a great way to start understanding the value of options without having to play them and is a great way to leverage any non-option trading account. These funds will allow you to work on your timing from the bulls markets to bears bear markets and back again and also allow you to be actively trading when the market is a bear run. These ETF will also allow you to play some of the major sectors that tend to cycle up and down with event like oil, financial, gold and silver to name a view. With the way they are setup if a sector moves up 1% a 2x will move 2% and a 3x will move 3%. Let say oil has a bull move of 5% then the bull 2x oil ETF 2 would move apporxamatly 10% and the bull oil 3x would move 15%. Now the inverse move would happen on the bear oil funds. The oil bear 2x would be down 10% and the 3x would be down .
Like any investment please take the time to understand them and their powers. Charting will be very important in making sure you are on the side of the during a bull or bear fund. Take the time to watch them or paper trade them to help you get a better understanding of how they work and the risk/rewards they can have.
To know more about ETF's check the ETF link below and for more information on each individual please use your search engines to find out more about them and what they are based on.
