Question for the option experts
#1
Posted 10 October 2007 - 05:50 PM
#2
Posted 10 October 2007 - 06:08 PM
#3
Posted 10 October 2007 - 06:19 PM
#4
Posted 10 October 2007 - 06:53 PM
It is the change in the delta (gamma) that probably caused that initial jump since Friday's rally, once the rally stopped the gamma also changed, but not the actual price level, the delta should mature toward 1.0, if the price continues to increase though. The more it sits at the same level the less gamma you will get and this means less premium. You are paying pure premium. If you want returns that track with the performance of the stock, you should probably consider buying in the money options...
Kisa and Techskeptic,
I went back and check my quote board (Optionsxpress), and it seems that the jump from 626 to 630 was AFTER hours, so it wouldn't be reflected yet on options. I never expected something like that, so it never even occured for me to check AH.I am feeling pretty dumb now.
Maybe they are getting news tomorrow of a positive nature.
Still not sorry I asked the question though, as I continue to learn a heck of a lot from the posters here.
Thank you,
Deva
#5
Posted 10 October 2007 - 07:59 PM
#6
Posted 10 October 2007 - 09:29 PM
Out of money calls
http://finance.yahoo...........GOQAJ.X 7.00 -0.30
In the money call/GOOAT.X 56.80 + 5.10
http://finance.yahoo...s=GOOG&k=600.00
Near month in the money call /GOOJT.X 33.00 +7.00
Study this option chain and try to buy if possible in the money and nearest month calls.Some times Leap options are traded at higher premium.
http://www.volatilit..._calculator.htm
Hello all,
I am long GOOG 750 Jan 08 calls. On Monday, GOOG reached 623 -ish and the option jumped from 5 to 8.50. Then as the stock hung there for awhile, then dipped to 609 - ish on Tuesday, the option dipped to about 6 (I am operating on memory here, so forgive me). I expected this beforehand.
Now, today the stock hits 631 and the option is still at 7?
I am not an options pro like Denleo or one of the other experts here; just play them instead of stock in order to achieve more leverage, so some explanation would be appreciated. Am familiar with delta, not so much with the other Greeks.
TIA,
Deva
#7
Posted 10 October 2007 - 09:50 PM
#8
Posted 10 October 2007 - 09:54 PM
#9
Posted 10 October 2007 - 10:12 PM
#10
Posted 10 October 2007 - 11:35 PM