Tuesday, August 28, 2012


I should buy some call options for different months more money in october options. The volume is low today and it has been study. Good sign.

This stock can go to 700 in 2-3 weeks. So buy and hold options.

No problem. Can get a good deal tomorrow. if it keeps steady, just buy it and forget it for 2 weeks.

Options are volatile and one needs to be hold them even with 30 percent loss. Hmmm

thats a lot but the trend is upward.

The DELTA of the stock  options is 0.5 AT THE MONEY. So if apple stock moves from 270 to 280 or 10 points the options is going to move 5 points. That can be a very big change if it is a weekly. For a weekly that could be upto 70 percent change.

For a 2 month expiration it could be like 30 percent range. So for a account of 25 K, it can come down to 17 thousand. Thats a 7 k down. But one has to be ready for it in this case only because Apple is showing uptrend.

Going down 7 K is an extreme situation usually it is around 20K on a down day.

I am just being ready for the reality that can happen. Talking in probabilities. One cannot think that it is going to be only one side. Anything can happen so one has to be prepared for the worst.

On the good side, if apple goes up 10 dollars in 2 weeks, Options go up 30 percent. thats like 32k in the account.

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