| |
| |
| |
|
Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Comments:
<0> hrmm
<0> that ****s everything up
<0> !calc 1500 + 21.98 + 7.50
<1> 1500 + 21.98 + 7.50 = 1529.48
<0> !calc 1529.48 / 17500
<1> 1529.48 / 17500 = 0.0873988571429
<2> that's the cost
<0> yeah
<2> 8.73
<2> %
<0> %
<0> yeah
<2> your stock price better move more than that %
<0> why?
<0> you only need $1
<0> !calc 2.5 * 1000
<1> 2.5 * 1000 = 2500.0
<0> !return 1500 2500
<1> The Return rate for 1500 -> 2500 is: 66.6666666667%
<3> !p
<2> from 1.5 -> 2.5
<2> ah ok i get it
<0> so you make $1000
<0> even better
<2> right
<2> but
<2> we forgot another thing
<2> what's the strike price for FEB06 CALL ?
<0> $35
<0> same price as the stock you want to buy
<0> !calc 1000 / 17500.00
<1> 1000 / 17500.00 = 0.0571428571429
<0> so you make 5.7% as opposed to 2.86
<0> %
<2> and how often does it move by $1 ?
<0> well
<0> tomorrow
<0> if it rebounds anything like japan
<0> it should
<0> again, you can't predict it
<0> but
<0> if all you want is a point
<0> and you are playing it short term
<2> ya
<0> for 3% more risk
<0> err
<0> yea
<0> 3% more risk
<0> the reward potential on the same price movement is greater
<0> !calc 17500 * .0286
<1> 17500 * .0286 = 500.5
<0> !calc 500.5 / 1000
<1> 500.5 / 1000 = 0.5005
<0> 50%
<0> blammo
<0> i didn't need that last step in tehre
<0> but just to be right ;)
<4> http://www.enhanced.net/modules.php?name=News&file=article&sid=11
<0> 3% more risk, for 50% more return.
<2> uhm.
<2> but typically the calls go to 0
<4> http://www.enhanced.net/modules.php?name=News&file=article&sid=11
<5> Tiny URL: http://tinyurl.com/75wp6 (URL by tanto)
<0> well
<0> i'm doing this
<4> ther's the tinyurl
<0> for discussion's sake
<0> ***uming the stock does what you want from it
<2> i'm looking at JAN Calls for YHOO now
<0> jan expire saturday
<0> no value
<2> ya
<0> so, all things being equal
<0> if you're comfortable with losing $1500
<2> too leveraged for me
<0> instead of $1000
<0> 33% more risk
<0> not 3
<2> it's not the losing $1500
<0> my bad
<2> looking at FEB calls now
<2> 37.50
<2> say .60
<0> that's a ****-ton of math...i need to make a profitcalc for options
<0> !calc .60 * 1000
<1> .60 * 1000 = 600.0
<0> !calc 600 + 21.98 + (.75 * 20)
<1> 600 + 21.98 + (.75 * 20) = 636.98
<0> !return .6 1.6
<1> The Return rate for .6 -> 1.6 is: 166.666666667%
<0> !calc 600 * 1.67
<1> 600 * 1.67 = 1002.0
<0> !calc 1002 - 36.98
<1> 1002 - 36.98 = 965.02
<0> !calc 965.02 / 17500
<1> 965.02 / 17500 = 0.055144
<0> that's 5.51% opposed to 2.86%
<0> on 40% less risk
<2> what's (.75 * 20) ?
<0> 21.98 = 10.99 per trade, one buy one sell
<0> .75 per contract
<0> 10 contracts
<0> once charged on the buy
<0> once on the sell
<0> .75* 20
<2> and you ***ume the option price goes from .6 -> 1.6 before FEB06 strike date?
<0> correct, ***uming you earn $1 per share
<0> in one day
<0> expiration in 30 days
<2> what would make the option contract price move that much?
<0> volatility
<0> volatility changes the price behavior of options
<0> more volatility = more price movement
<0> inverse is true
<0> soooo buying the out of the money call will make you more money on less risk
<0> in theory
<0> let's try it
<2> ya
<0> !q yhqbu.x
<1> YHQBU.X - YHOO Feb 2006 37.- 0.60 0.00 0.00% (9238) Daily Range: [+++-------] 30% (0.45 0.95) Yearly Range: N/A (N/A N/A)
<2> I bet most of the time it expires out of the $ too
<0> !add yhqbu.x 1000 .6
<1> Symbol yhqbu.x added.
<0> just to see how it does
<0> !p
<1> MOTBE.X 1000 (0.50) 500.0 0.0% (2006-01-18)
<1> MOTNX.X 1000 (0.50) 500.0 0.0% (2006-01-18)
<1> QAABQ.X 100 (3.70) 370.0 -15.91% (2006-01-17)
<1> QAANP.X 100 (3.50) 350.0 +59.09% (2006-01-17)
<1> YHQBU.X 1000 (0.60) 600.0 0.0% (2006-01-19)
<1> Total portfolio value for jcv is 0.0 +2.65% ($60.0) gain.
<0> again, you don't have to let an option expire
<0> you can sell it
<2> yep
<0> at the close of the day
<0> or two days
<0> or twenty
<0> but with more time value on it
<0> it's intrinsically worth more
<2> and if it expires.. you only lost on the cost of the contract
<0> correct
<0> which
<0> in this case
<0> would be
<0> the same amount of risk
<0> err
<0> 40% less
<0> however
<0> i dont know exactly how the price will behave tomorrow
<0> so ***uming the contract was bought yesterday
<0> that is what shows up on !p
Return to
#stocks
or
Go to some related
logs:
#beginner
#beginner
ass urug
#beginner
osnf77c
#debian
winxp page file fuckup
frickadelle
#politics
#politics
|
|