i am not an expert, quite new to option trading.
here is my experience:
i would pick high fluctuation moment to buy option. in another word, if i am not sure in the future 1-3 days, whether there is a big jump, i would not buy that option.
Flucatuation is different from one stock to another.
For example, if you look at CSCO, for a long time, it is flat, and the option will drop even you have the right direction.
But, at the same time, the SLV and GLD are flucating a lot.
i have a list of 30+ stocks to observe each day,(not that much). sometimes, none of them show fluctuation; the other time, one or two of them show fluctuation.
depending on the fluctuation itself, for 1% stock move in the right direction, the option can be up from 10% to 50% based on my observation.
to solve the price spread problem , i usually picked those stock with big volume. GOOG and NFLX are not on my list, as they have low volume each day.
Here are some stocks on my list:
SPY, QQQ, AAPL, FB...
these stocks are high volume and fluctuating. For SPY and QQQ, even if the fluctuating is not that much, as the volume is big, so long the direction is right, you will not lose too much.
just a tiny thought, hope that we all improve and make more money
here is my experience:
i would pick high fluctuation moment to buy option. in another word, if i am not sure in the future 1-3 days, whether there is a big jump, i would not buy that option.
Flucatuation is different from one stock to another.
For example, if you look at CSCO, for a long time, it is flat, and the option will drop even you have the right direction.
But, at the same time, the SLV and GLD are flucating a lot.
i have a list of 30+ stocks to observe each day,(not that much). sometimes, none of them show fluctuation; the other time, one or two of them show fluctuation.
depending on the fluctuation itself, for 1% stock move in the right direction, the option can be up from 10% to 50% based on my observation.
to solve the price spread problem , i usually picked those stock with big volume. GOOG and NFLX are not on my list, as they have low volume each day.
Here are some stocks on my list:
SPY, QQQ, AAPL, FB...
these stocks are high volume and fluctuating. For SPY and QQQ, even if the fluctuating is not that much, as the volume is big, so long the direction is right, you will not lose too much.
just a tiny thought, hope that we all improve and make more money
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