Coming back to Options after a long break

[buzzlightyear]

I am re-looking at option as a source of additional income, after trading options about 4-5 years ago....I was fairly successful, which allowed me to fund my deposit for my first PPOR.

At that stage I was following a software package that was in the market. After looking at previous threads for the best way to re-introduce myself to Options, the question I have is, do most people here use software packages today or do their own analysis to trade, or do you do both?

Any specific software packages that might be worthwhile looking at eg Optionetics or Guy Bower's Options1. Have seen some commentary about these on this forum and have been generally positive.

Have taken note of various books to look at in addition and will do that.

Any other recommendations or areas that I should be focusing on in this re-learning phase.

Thanks in advance.

Buzz

 

[The Barbarian Investor]

DTM ?

I'd suggest searching the threads, see jet$ thread on century 21's course..

 

[SuperTed]

If you had a strategy that worked 4-5 yrs ago that funded yr deposit Id say you have more then enough idea without wasting money doing a course.

Go here read or buy a few books..... and save yr money

http://www.asx.com.au/markets/Options_AM2.shtm


After all identifying a Stock to trade options on, then implementing the put / call strategy isnt exactly rocket science ;-)

At the moment i am finding it difficult to get FAIR value when writing options as the market makers are tying up the series and being wankers. (nothing like the premium you got 4 yrs ago ;-(

The asx/options site also give you fair value, all the tools are there if you trade only a few trades. If you do several trades (lots of open positions) then you need faster tools like
http://www.rpsw.com/index.html

For real time price quotes I use telerate, some use boursedata?

NOTE*even when you identify a good trade your at the peril of the market makers....good luck

 

[DTM]

I am re-looking at option as a source of additional income, after trading options about 4-5 years ago....I was fairly successful, which allowed me to fund my deposit for my first PPOR.

At that stage I was following a software package that was in the market. After looking at previous threads for the best way to re-introduce myself to Options, the question I have is, do most people here use software packages today or do their own analysis to trade, or do you do both?

Any specific software packages that might be worthwhile looking at eg Optionetics or Guy Bower's Options1. Have seen some commentary about these on this forum and have been generally positive.

Have taken note of various books to look at in addition and will do that.

Any other recommendations or areas that I should be focusing on in this re-learning phase.

Thanks in advance.

Buzz

I did the optionetics course on learning how to use options and have optiongear from Hubb as a result. It's a great peice of software as I use it for everything else ie fx, futures, overseas indicies etc except for options. I don't spend much time working out whether the option is a bargain etc as I mainly concentrate on understanding the underlying. ie Understanding the movement of the share price. That's my trading style but you may be different. Wayne and Money tree might be able to give you better advice as they have been doing this a long time.

Just my thoughts...

 

[SuperTed]

I did the optionetics course on learning how to use options and have optiongear from Hubb as a result. It's a great peice of software as I use it for everything else ie fx, futures, overseas indicies etc except for options. I don't spend much time working out whether the option is a bargain etc as I mainly concentrate on understanding the underlying. ie Understanding the movement of the share price. That's my trading style but you may be different. Wayne and Money tree might be able to give you better advice as they have been doing this a long time.

Just my thoughts...

DTM am I missing something.

1/ You recommend this great piece of software that except for use with options : ie you dont use it for option trading

2/ Then you dont concentrate on wheather the option is a bargain (i gather under priced as if you are a buyer) or even perhaps if it is over priced if you are a seller.

[These are two key areas to look at when trading options as a buyer or seller.]

3/ You use it to look at share price movements...[expensive technical software you use for that!]

And in another thread you said this

An excellent read. Very informative and explains everything in a clear manner, easy to understand. I could have saved myself 5k by reading this book instead of doing the optionetics seminars.

 

[DTM]

DTM am I missing something.

1/ You recommend this great piece of software that except for use with options : ie you dont use it for option trading

2/ Then you dont concentrate on wheather the option is a bargain (i gather under priced as if you are a buyer) or even perhaps if it is over priced if you are a seller.

[These are two key areas to look at when trading options as a buyer or seller.]

This software can tell you whether the price of the option is cheap or expensive in relationship to volatility etc but it can't tell you the direction of movement for the underlying (no software can give you that). To me, regardless whether its cheap or expensive, if I feel that if the underlying was going to move in a certain direction, then my trades will reflect that. I did go to a Lawrence McMillian (American options expert) seminar once and his trades were worked out from a probability curve so when things were in his favour, he would make the trade. Very complicated and interesting whereas my trading style is simple and purely directional. No software can give you predictions of which way a share will move.

DTM am I missing something.

3/ You use it to look at share price movements...[expensive technical software you use for that!]

And in another thread you said this

I had the software already paid for so am just using it. As mentioned above, I have no need to use it's pricing model.

I do find it useful as I'm looking into moving into forex, futures and indicies. I will be shopping around once my yearly membership is up.

PS I highly recommend L. MacMillian's books.