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Friday, November 6, 2009

Options Trading Stocks to Watch

These are great stocks to follow and day trade with options.
The open interest is very high which makes for easy execution.

When day trading the Delta and Implied volatility are the things to consider.
Deep in the money strike price will give a higher Delta.

I prefer a delta of 90 down to a minimum delta of 50.

That means if I select a Strike price with a Delta of 0.50 and the underlying stock moves $1 the option returns .50 cents times 100 shares. Another way to look at it is, I control 50% of 100 shares per option contract.

The Theta is your time component and comes into play when holding overnight, weekends and into expiration...Although I am in most trades for less than 2 hrs , I prefer to trade options with a minimum 30 days or more of Theta,,,for safety

GOOG
BIDU
RIMM
AAPL
AMZN
POT
MA
GS
WYNN
XOM
ISRG

1 comment:

facebook fun said...

volatility is common.thanks for giving a good number of stock list.we have also been investing on stocks and that too, day trading,we have been seeking the help of a company which would provide us all the day trading secrets
,we are now making good profits,which little intelligence applied.