re: options trading

quote:

---

Define it

---

sorry I meant the bid price or the price I would buy in at for the contract.
My buddy just explained options to me on the phone a few days ago so my knowledge and lingo are limited. Basically he said there is a strike price and a date of expiration. The price you get in at fluctuates according to the amount of time until expiration and the probability of it hitting that strike price.
That was the "it" I was referring to when I said if it gets low enough.
here is CHK
LINK
so if I wanted CHKKQ.X it would have a strike price of 22.50 and would expire nov. 21st and cost me $67.00(b/c its bid and ask price avg out to around .67x100)(the price I would get in at).

is there a broker in BR that i can sit down with to make the investment in options?

never done this before but want to do this by next week.

due to them NOT allowing me due to lack of experience?

I think he's asking if you have to be accredited to do whatever it is that you're suggesting.

quote:

---

ok, given that i dont have the experience for commodity option trading where else can i invest based on the belief that oil is about to spike?

---

You also have to pay attention to the term structure of the contracts. I think the curve might be in "contango" right now, which means oil will have to go up a certain % over the next year just for you to break even.

that would need a whole other TD board, and there aren't enough of us here to support it.

Agreed

But everyone talking of jumping right in to options trading....well I better slow down...After a week of research would IMHO probably be the beginning of the end for most. If you are interested in trading then why not take a chart go back a couple of weeks/months try to predict where it will be based on bottoms/tops and other variable and then pull up the stock and see what you have. Try it with lots of different symbols and get some practice. I know that past charts will not show you what you will be dealing with in regards in what the market is doing these days but it will give you a solid base of learning to start with.

stockcharts.com (condense charts to three month history)

Review amount of buying/selling going on at the time. (indicated at bottom of chart)

Always review what kind of news within company is going on IE: Is there any sort of court or deposition going on where some news might come out at the end. (just one example, keep in mind that you are trying to predict the future so it goes way beyond normal sources of vol. and corp. valuation)

Much more goes into it than that but at least its great practice for what your ultimate goal is.

Please explain to me what about charting in regards to choosing the proper positions when trading options is not considered technical analysis?

While I do agree with you, you also said that it could be reserved for another thread so I kept it very broad. If people really wanted to use it as a tool in trading I believe they would do there in depth research on their own. Anyone who has enough knowledge to talk about a subject like options trading would have enough sense to know that a moderate amount of research is needed before making any financial related decision. Did I give to much credit?

I also left my post very open ended about there being many more factors that go into Technical Analysis.

I am pretty busy at work right now but I look forward to continuing this conversation as soon as possible.