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This group is for brand new option traders. If you've never traded an option, this groups for you. Although... we would like to have some experienced option traders to help us through the more difficult trades. I will start this group with a simple covered call. This will be my first option trade, so the excitement starts right away. We will be using The Options Playbook as our guide. Everybody can ask all and any questions without the fear of looking like an idiot.

Active Since 10/21/08

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Options for Beginners Forum > What to look at or for to identify a posible trade.

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whomi

Member since: Jan 08
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Posted December 31, 2008 (01:44AM)
Hello all, I am not one to post very often as I don't really want to shine a spotlight on my ignorance but what the heck. I have traded options a few times and unfortunately made money on my first trade. I thought I knew what I was doing. HA! I have a good grasp of call options but have a hard time reversing my thinking for puts. Anyway the meat of my question is I don't really know what to look at for a trade. I have been leaving my account alone and just holding long on stocks and staying away from options as the markets have scared the poop out of me. Any thoughts of what to look for to identify a good options play? I tried the options screener and, well, um not so good. thx
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PutAngel

Member since: Oct 08
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Posted December 31, 2008 (09:45AM)

Knowing what to trade and how all depends on the knowledge you have of the different products. 

To help, I guess, the major options plays for beginners are covered calls and call/put debit/credit spreads. These vehicles have calculated risk and don't require the forecasting ability of more complex trades. Learn how to use these first and then trade.

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golax

Member since: Oct 08
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Posted January 08, 2009 (01:29AM)
Whoami,

Covered calls is a great way to start. I suggest that you join our Yahoo covered calls group. There are a number of us that share strategy and discuss issues. I have also included two links to a couple of excellent blogs. Each writer details all their trades and discusses their rationale/strategy. I find it very helpful.

http://finance.groups.yahoo.com/group/justcoveredcalls/

http://coveredwriter.blogspot.com/

http://coveredcallsadvisor.blogspot.com/

I look forward to you joining the group.

Good luck.

Jim C
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Pro V1x

Member since: Jun 09
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Posted July 01, 2009 (03:46PM)
I agree.  I traded options years ago when I was totally ignorant buying nothing but cheap OTM calls, now I am just ignorant :) but better educated (thanks Mark Wolfinger).  I have begun by just trading covered calls and now looking for credit spreads and if I want to purchase a stock I will write a cash secured put(s).
Thanks Jim C for the links.  I would like to join in.