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
Showing posts with label Options Trading. Show all posts
Showing posts with label Options Trading. Show all posts
Friday, November 6, 2009
Options Trading Stocks to Watch
Posted by Neboxian at 7:13 AM 1 comments
Labels: Options Trading
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