ITM, ATM, OTM Options
| |
|
Last Poster |
Posts |
Pages |
Last Post |
| |
|
|
|
|
|
|
| Author |
Message |
     uturn
Member
Username: uturn
Post Number: 339
Registered: 09-2002Rating: N/A
Votes: 0
|
| | Saturday, February 22, 2003 - 09:42 am: |  
|
Firstly,
Thank you Colin / Robin for the Options category.
ITM: In the money
ATM: At the money
OTM: Out of the money.
Hi PM,
I was taught to only buy ITM options.
I progressed to ATM and found it worthwhile.
Only recently I have been buying OTM.
You are correct when you say it is difficult to buy deep OTM at a fair price. It can be a long wait till they start to kick in if you have paid too much. You can wait one or two stops!
One to two stops out is where there is some price activity on the major stocks and some price reality.
OTM requires confidence in the TA setup, and not to be taken lightly? I am buying at my price target.
eg. RIO: Bought Mar $34-50 Calls at 28c (SP=$32-83. ATM RIO Mar Calls ~90c. Profit potential 300%)
RIO is one of the few stocks that can go like a rocket to support this aggressive approach.
I should add that I am trading a W4 'power leg' up, and wouldn't be as far out on the other legs
(back to 1 or 2 stops out).
I checked out your screen dump and you are using a similar setup to me.
I am trading live with dynamic stock and market depth watch screens. I use IC for planning my trades, and Bigcharts for delayed intraday charts.
With your Bourse setup you have the lot, all on one screen. Very handy!
I will continue to post charts with the 'Trends and Tripwires' support/resistance lines. Testing is the only true way of determining their worth. So far I am very impressed.
They show WOW at a reversal support level = time to go Calls, though I will look at the banks some more first.
Cheers,
uturn
|
portmacquarie
Member
Username: portmacquarie
Post Number: 36
Registered: 12-2002Rating: N/A
Votes: 0
|
| | Saturday, February 22, 2003 - 10:22 am: |
|
Hi Uturn,
I used to use Bigcharts or some other equivalent till I discovered quotetracker
http://www.quotetracker.com
It's beautiful - free, real time intraday charts - but you have to have a data feed.
I use Sanford as my broker (online options) and because of the number of trades pay nothing for access to all their services - which includes a data feed for quotetracker - but even at $9 a month it is cheap. You also can get sms alerts, reports, etc. etc - cheap at double the price.
Or, you can join Commsec for free and get a data feed from them - plus they have other goodies on their site for members. Been a member for ages but never made a trade through them - and never been hassled about it.
And yes - the bourse setup is very handy.
I have two monitors set up here - with quotetracker giving me a live intraday feed and Bourse on the other.
As for your graphs - by all means post them! Even though I don't go for all those patterns based on straight and parallel lines - life and trading in my opinion is not that ordered - but there is always something to be gleamed from them - and when trading we need every advantage we can get.
Dunno about WOW though - pretty strong push through that significant support line on Friday - could do anything - the strength of the fall has really surprised me - as it doesn't seem all that long ago I was regularly trading calls on it.
But - as we agreed - it is a favorite and I know we will both be watching it with interest.
port
|
gilk
Member
Username: gilk
Post Number: 5
Registered: 11-2002Rating: N/A
Votes: 0
|
| | Saturday, March 08, 2003 - 07:46 pm: |
|
Hi PortM,
I pay $9 per month to Sanford....so how do I get a datafeed from them and then into quotetracker???
The nitty gritty please
Thanks in anticipation
|
portmacquarie
Member
Username: portmacquarie
Post Number: 101
Registered: 12-2002Rating: 
Votes: 2
|
| | Sunday, March 09, 2003 - 07:43 am: |
|
Just select Sanford Securities (Australia) Real Time (Cust Only) from he menu in the top right hand corner.
You will need to enter your user name and password.
Then set it to auto and each time you start the program it will log in, and automatically update the date at teh time interval you specify.
I update it each minute - If you have download limits - better check the data usage because I think the frequent updates could use up a fair bit of bandwidth.
I think Medved posted something in the forums about that - you could do a search for the post if you are concerned - or email them.
portmacquarie
Best climate in the Universe!
|
gilk
Member
Username: gilk
Post Number: 6
Registered: 11-2002Rating: N/A
Votes: 0
|
| | Sunday, March 09, 2003 - 10:42 am: |
|
Hi PortM,
thanks for that. I have downloaded QT, and set up the datafeed and my watchlist. Will have to wait to monday till sanford cranks up the feed. Will post my impressions then.
Sunshine Coast
Best place in the universe
|
portmacquarie
Member
Username: portmacquarie
Post Number: 105
Registered: 12-2002Rating: N/A
Votes: 0
|
| | Sunday, March 09, 2003 - 08:43 pm: |
|
gilk,
The sunshine coast - isn't that where they have all those storms and cyclones? 
portmacquarie
Best climate in the Universe!
|
|
Threads by Last Post Time: First
Previous
591
592
593
594
595
596
597
598
599
600
Next
Last
|
Auto-Fit Trendlines
