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|User Info||Would like to trade my first options; entered at 2012-07-19 20:10:14|
Registered: 2007-07-11 Burbank, CA
Thanks Gen & Gamma, those are helpful tips. In your experience, are there other companies that are typically more/less volatile than the overall market like Google? Or maybe entire sectors?|
I know in your explanations above your referred to the other data about options as being fixed by the Black-Sholes model. How do you use them in that case? For example, how would you determine if the gamma (no pun) of an option is too high or too low, depending on whether you're buying or selling? I can read and understand the definitions of delta, gamma, theta, etc but really struggle with trying to make practical use of the actual values. Or is that getting into the realm where the answer is too specific to the underlying issue to have general guidelines?
This has been an extremely helpful discussion. I've been to options seminars and asked similar questions and they acted like I was looking for the secret recipe for coca-cola.