Wednesday, November 21, 2007

Trading Options

Some Trading related websites I've been checking out lately have been- can test out how different option strategies would work out (the analyzer gives you option prices from 3 weeks ago, so you can see how the strategy would have worked out today)
1Option,- There have been some insightful posts on option trading at this website, for example I was thinking of a strategy of buying a CALL LEAP on a stock I like such as RIO, and writing front month CALLs at the money for the duration of the period that I own the LEAP, a strategy similar to a COVERED CALL STRATEGY, except less capital is needed because the LEAP acts similar to buying the stock outright because time decay(theta), is less of a factor, making this a DIAGONAL SPREAD.
EFP's,- I've been reading about EFP's, as a way to beat current interest rates that my broker offers
EliteTrader Disscussion on EFP's and the what to do about the 1st 10k that doesn't receive interest.


ainkurn on 4:56 PM said...

thanks for the links. I've been thinking about trading a few more options recently. i'm really interested in using straddles ahead of earnings, and on the SPY and points of indecision in the market.

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