Replies to post #4485 on Langlui's Big Board and Options Plays

[Mitzel123]

can you explain this part a little bit:

"The harder part is to work with the premium and time value. Current month is May. May options' premium is much higher in the first two weeks (this week and next week). Once we enter the month of May, those May options' premium are going to go down. Time value decay as the option gets closer to expiration date."

i am also currently trying to learn options and dont really understand this part...

thanks!!!

[langlui]

MrBigzy, does this answer ur question?

[estimator]

Land, go with AAPL since you are paper trading it.

[MrBigz]

Do you have a stock in mind? We can start from there.


No. I thought I would paper option trade one of the ones you buy - goog, appl, bidu, etc until I understand fully what this entails.

can this be done on-line or do I need to phone it in to my broker?

also, how\where can I find what stocks have good volume for options, since I assume this is a necessity?

thx