which options to choose?

[alen]

when swing trading options, what are the basic characteristics that the underlying stock should have?

 

[Profitaker]

when swing trading options, what are the basic characteristics that the underlying stock should have?

A higher volatility than the implied volatility of the option you've bought.

 

[Rhody Trader]

You probably want a stock with a price of 50 or better, just because the price moves are bigger. That's generally my strategy, anyway. That's not to say you can't do well with lower priced stocks, though.

 

[Anonymous]

If simply going to buy then close the option, choose an underlying that moves, but also fits into your budget.

 

[Profitaker]

Alen

You should be much more concerned with choosing the option, rather than the underlying. The underlying will either go up or down, and you'll get that right about 50% of the time (over the long run). But which option you chose in terms of strike, time to expiry, IV, long or short or combinations thereof will have a profound effect on your P/L, much, much more than the behaviour of the underlying.

Good luck.