Recent content by RomanW

Anybody agree we are in a falling wedge? (look back to Oct 28 high) Also, can anybody tell me what type of trend line analysis this is and what it indicates?

I have never traded before. I am reading Options and Options Trading, Option Pricing: Black Scholes Made Easy, Options Pricing and Volatility then I am going to read some books on strategies. I know the basics of the markets but what books would you recommend reading for market analysis? I have...

If you started as a novice options trader how long did it take you to get to level three with your broker?

I'm not touching any options until I have a good understanding of them. I've only just gotten started. Not going to simply give up because I currently don't understand something.

I'm not sure I have the answer I am looking for yet. I'll rephrase my question. You're long ATM 100 Call and short OTM 110 Call. Breakeven is 104. The stock never goes above 110 but you stick it out to expiration where the stock is trading at 108, 4 profit. This appears to be a long call...

Could you explain how you are never uncovered? This over-complication comes from my misunderstanding, thus that is why I am here, to ask for help to correct my understanding.

It's OK, I'm grateful for any kind of help, suggestion or criticism. What you explained is a part of my problem. Because the person I am selling the call option to will not exercise their right (because the price is cheaper in the market) I have no one to sell it to, meaning on expiration I can...

Yes, this is a bull call spread with identical expirations. My query is if you have the right to buy (stock price is above breakeven by expiration) but you haven't got the obligation to sell (stock price is below the short call by expiration) how do you profit from this spread without buying the...

Trying to answer my own question (although uncertain of my validity) this could be the only way to cover. If the stock price sits above breakeven and below the short call - you will have to short another call that is in-the-money to cover yourself before expiration. I am assuming this is called...

There is a gap in my knowledge that I can't seem to fill so far. Say you are doing a bull call and by expiration the call you bought has reached above breakeven but it has not reach high enough to sell the one you shorted. Does this leave you uncovered? If so how can you resolve this? I would...

I thought that might be the case. Is there a software program that provides this type of practise that can fill in the "fudges"? I think it's called backtesting but I haven't quite found a solid definition yet.

Could you use pre-existing stock charts to practise? Say I pick a day of a month last year on a stock. Without exposing the proceeding movement of the stock I can recreate the strikes and premiums using a pricing model calculated in Excel. From there I can plan my strategy then moments later as...

Fantastic, this is the kind of advice I needed. I did not want to waste much time learning useless things. Although I have come across two strong points of view in learning options. One person says keep it simple, stick to what is comfortable and specialize in that. The other person says learn...

Are you saying you do not trade options because you didn't understand this book?

Thanks for the advise James. To me a lot of terms are still vague and my style will not be defined at any point soon. So far I am reading George Fontanills's book Trading Options online and reading up some stuff from Optionetics. I like their style but they do not seem to teach much of the...