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Somatung

Somatung

Banned
#51
#51
sharan said:
Hi Dan,
Is there any way I can plot the option price (including multiple strike prices) with the underlying value. Want to view something on those lines in intra day and daily time frames.
Have a nice weekend.
Click to expand...
Hi Sharan

You mean to have a little window in your chart which does show those option prices from different strike levels at once? You then could move over your chart with the cursor and the numbers in the little window would change and show the different option prices from those different strike levels according to where you are on the chart?

Did I get that right?

If so, then I have to say: No I do not know such a tool which does do exactly what was mentioned above (at least not in the software I use nor in any platform). You may open a new thread in the "Software" - or even "Broker Platforms" section of the forum and ask there about this very specific question, as this question is related in those directions including the needed data feed from your exchange.

(I guess you want to see how otm, atm and itm option do behave in there pricing through that? But for this such a tool is not needed even it would be practical. Just watch the option matrix you have in your platform. If they offer live data feed from options traded on your exchange, that will do the job.)

Take care / Dan :)
 
L

lemondew

Well-Known Member
#52
#52
Hi Dan,

Good to read your posts. As i understand options is a zero sum game. If I and Dan are the only 2 option traders then its either me or him that makes money. Unless off course the guy does covered call or is hedged in some other way.

Your statment
"I do help already in many other ways and that should be more than enough to make any of you to be able to trade options with permanent decent profits".

Are you saying knowing basics of options is enough to outsmart most other guys who trade options?
 
Somatung

Somatung

Banned
#53
#53
lemondew said:
Hi Dan,

Good to read your posts.

1. As i understand options is a zero sum game. If I and Dan are the only 2 option traders then its either me or him that makes money. Unless off course the guy does covered call or is hedged in some other way.

Your statment
"I do help already in many other ways and that should be more than enough to make any of you to be able to trade options with permanent decent profits".

2. Are you saying knowing basics of options is enough to outsmart most other guys who trade options?
Click to expand...
Hi Lemondew

That would be great if only you and me would be in the option market. Imagine what big boys we would be. Two giants who would trade against each others like Google against Yahoo.

1. Index market Y at X. You buy a call and I buy a put. Calls have in general a lower IV compare to puts in index markets and vice versa in grain markets. As I have the put in this Y Index market, I take a higher risk compare to you who bought the call with a lover IV = Lower risk. Do you call that a zero sum game? It is not a zero sum game as I take the higher risk with my put. If you go long a future and I go short a future, this we can call a zero sum game as in the long run the chance of 50 to 50 is given. But here we talk about very specific nuances.

2. That is a question which is not in detail defined by you like:

- What is for you basic knowledge about option trading?
- What doe's it include in your mind?
- Who or what are most other guys who trade options?

You see, your question is like a chewing gum which can be pushed in any direction you wish at any time.

Take care / Dan

(If I have miss understood your post, kindly let me know)
 
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L

lemondew

Well-Known Member
#54
#54
If you and me are the only 2 players then if you buy puts I have to sell it and vice versa. There isnt a win - win situation here unless we also hedge ourselves with stocks. So ones win = others loss and the net change in wealth or benefit is zero. It may be theorotically argued that brokerage and taxes are involved so it isnt a zero sum game agreed.

What I am trying to say is may be a little tougher nothing else and be prepared for it. All your examples are wonderful and helpful. I dont disagree at all. All I am suggesting is the learner may need to refine a little and also be open to learning from other sources. The methods defined here may or may not take a person to a point where he starts making permanent profits. It will definitely take him in that direction.

But if you are nearly there and still not reached there I leave it for the user to decide whether he would make money or not.

Somatung said:
Hi Lemondew

That would be great if only you and me would be in the option market. :clap::clapping: Imagine what big boys we would be. Two giants who would trade against each others like Google against Yahoo. :D

1. Index market Y at X. You buy a call and I buy a put. Calls have in general a lower IV compare to puts in index markets and vice versa in grain markets. As I have the put in this Y Index market, I take a higher risk compare to you who bought the call with a lover IV = Lower risk. Do you call that a zero sum game? It is not a zero sum game as I take the higher risk with my put. If you go long a future and I go short a future, this we can call a zero sum game as in the long run the chance of 50 to 50 is given. But here we talk about very specific nuances.

2. That is a question which is not in detail defined by you like:

- What is for you basic knowledge about option trading?
- What doe's it include in your mind?
- Who or what are most other guys who trade options?

You see, your question is like a chewing gum which can be pushed in any direction you wish at any time.

Take care / Dan :)

(If I have miss understood your post, kindly let me know)
Click to expand...
 
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Somatung

Somatung

Banned
#55
#55
@ Lemondew

It is the learners choice to take any sources he can use. It is the learner who must refine the given information. Very well told, as this is a forum and not a live mentoring place. Even than: There is enough basic knowledge about options posted even from me that others can make a decent, regular income with it. You know that and I know that.
 
sharan

sharan

Member
#56
#56
Thanks Dan for the time and effort you have devoted. Will have to pull up my socks now. Would look up to you in future for the help. You see, when someone has the requisite knowledge then I do not mind taking advice from him ( solicited or unsolicited).
:thumb:
 
jetking

jetking

Well-Known Member
#57
#57
sharan said:
Hi Dan,
Is there any way I can plot the option price (including multiple strike prices) with the underlying value. Want to view something on those lines in intra day and daily time frames.
Have a nice weekend.
Click to expand...
no u can't do that

but in some softwares,u can open multiple windows side by side and compare them at a glance
 
sharan

sharan

Member
#58
#58
Hi jetking,
Thanks for the input. But would have been great if that was possible, hope you agree. Would enable one to have a graphical representation of the behaviour of ATM, otm and itm.



jetking said:
no u can't do that

but in some softwares,u can open multiple windows side by side and compare them at a glance
Click to expand...
 
jetking

jetking

Well-Known Member
#59
#59
sharan said:
Hi jetking,
Thanks for the input. But would have been great if that was possible, hope you agree. Would enable one to have a graphical representation of the behaviour of ATM, otm and itm.
Click to expand...
agree with u

but i am not sure weather this is possible in near future

but let us hope for the best
 
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