QSII ==> The Merry Christmas Winner

[mimo_100]

Mimo,
Why don't you fire up the options thread? I'd enjoy it, and I am sure others would profit as well.

NBB and sisterwin2,

OK, I will fire one up. Just be aware (as you can see from my number of posts) that, unfortunately, I cannot spend as much time here as I would like, due to other obligations. But I will do my best to moderate the thread.

Thanks to everyone for the interest.

Tim

[spikefader]

Yep, good idea for that thread.

[Adam]

I'll see you all there!

[mimo_100]

I decided to include all derivatives, not just options. I had a temporary cerebal anomaly, and hopefuly this will not scare everyone away.

Here is the link to the "NEW OPTIONS" thread.

http://www.mrmarketishuge.com/showthread.php?t=1109

[Adam]

Here is a link to a free options calculator using the Black-Scholes method. I have no experience as to its accuracy, so beware.

[http://www.blobek.com/black-scholes.html[/url]



Tim, I'm must be half a moron cause I had no Idea what I was looking at. I'll have to hit it when I have more time. These people here actually expect me to work. I guess thats what happens when your V.P. I personaly think the only thing I should be doing is making sure everyone else is working while I chat on the MM forum. The boss disagrees! He just don't know MM forum yet.

[mimo_100]

Here is a link to a free options calculator using the Black-Scholes method. I have no experience as to its accuracy, so beware.

[http://www.blobek.com/black-scholes.html[/url]



Tim, I'm must be half a moron cause I had no Idea what I was looking at. I'll have to hit it when I have more time. These people here actually expect me to work. I guess thats what happens when your V.P. I personaly think the only thing I should be doing is making sure everyone else is working while I chat on the MM forum. The boss disagrees! He just don't know MM forum yet.

I think you were discussing the QSII Jan 70 puts above.



In the calculator, I put 70 for the strike price, $75.30 in the current price (2:20 PM ET today), 14 in the number of days to expiration, 38 in the volatility %, and 4% in the annual interest rate.



The calculator said that the theoretical price of the puts was 0.5464 and the calls was 5.9537. The actual price quoted at NASDAQ.com was $.45 for the puts and the calls were $5.90.

[skiracer]

Here are two free web seminars offered by the Chicago Board of Options Exchange (CBOE). Go to www.cboe.com and you'll be able to get to the free seminars registration page from there if you want.

[Adam]

Thanx Tim. But for the novice where did you get the 38% volitility and the 4% annual intrest rate from?

If I understand correctly these calculations can be used to predict the # of puts necessary to provide insurane if the stock drops to a certian level.

In opposite it can be used to calculate possible call option values as the stock value changes.

[Adam]

Here are two free web seminars offered by the Chicago Board of Options Exchange (CBOE). Go to www.cboe.com and you'll be able to get to the free seminars registration page from there if you want.

I've heard of that site before and thank you for pointing it out again. I'm just struggling to find time to eat lunch and do my job. I can only hide from our emplyees for so long before something happens and everyone got thier thumbs up thier ass until they find me.

I will make time to invest in my education. Your input is much appeciated.

Adam K

[sisterwin2]

Adam.... I went thru some of the tutorials and learned alot... I am a bit slow and will go thru them again. I do not know what you do for a living but I could never get this while at work. I spend about 1/2hr each nite on it then treat myself afterwards by coming here for any new post. I just cant wait till I learn enough to take a dip.

Good luck

[Adam]

Hello Dena, Yes your right most people don't have time for this at work but I'm lucky to be in my position. I have read quite a bit on options and been involved with the market for a while. I also spend several hrs each night to view the forum and study for my upcoming trades as they present themselves. My impatience is usualy what hurts me. Take your time, when the waters right dive in, but allways double check your not diving into an inch of water and 10 feet of mud. That can happen when your impatient like me. I've been up and down in the options positions I'm in. Can't take your eye off you position because of the extreme volitility. Also, options are not for the faint of heart.

The more I talk to the people at this forum the more I learn.

Happy trading!

Adam


P.S. The only thing about work is I only have time to keep my eye on my positions. I've lost much money due to my work keeping me from my computer. If the old man fires me it will just give me more time to make my money make more money. All I do is find ways to constantly make our company more money and entertain clients. While the boss's pockets get fatter he won't care what I do. One must look after thier own interests.

[skiracer]

Hello Dena, Yes your right most people don't have time for this at work but I'm lucky to be in my position. I have read quite a bit on options and been involved with the market for a while. I also spend several hrs each night to view the forum and study for my upcoming trades as they present themselves. My impatience is usualy what hurts me. Take your time, when the waters right dive in, but allways double check your not diving into an inch of water and 10 feet of mud. That can happen when your impatient like me. I've been up and down in the options positions I'm in. Can't take your eye off you position because of the extreme volitility. Also, options are not for the faint of heart.

The more I talk to the people at this forum the more I learn.

Happy trading!

Adam


P.S. The only thing about work is I only have time to keep my eye on my positions. I've lost much money due to my work keeping me from my computer. If the old man fires me it will just give me more time to make my money make more money. All I do is find ways to constantly make our company more money and entertain clients. While the boss's pockets get fatter he won't care what I do. One must look after thier own interests.

Adam,
You had better keep your nose to the grindstone at work and keep that day job. If you then have enough stamina to stay up all night studying these stocks then do it but don't let that take away from your day job or you'll really be out in the cold. You must keep that cash flow coming in because the myth of making a living an supporting a family is just that a myth. One way to keep from having to watch your positions all day is to learn where to strategically place your stops and then have enough faith in them to leave them. After getting stopped out enough times you will slowly adapt a strategy that works to some reasonable degree of satisfaction. But you will never stop from getting stopped out on occassion. It's all part of it. You stated your biggest problem, patience and cold hard insensitivity. It only comes with hard work and holding steadfast to your discipline and plan. Work on that because it is one of the most important factors in all of this. Maybe you should re-evaluate that options position. If it is taking up so much of your time it's controlling you instead of you controlling it. It might not be worth what it's taking to stay in it.

[Adam]

Your right Ski, I have been stopped out of several positions just to watch them rebound then some. I have learned to trust my stops. The losses where mainly from getting to know trading by computor. I chalk those up to learning lessons. My day job is just that(family buisness also) it pays well as I am the VP of our evironmental contracting company. However, I hate the line of work and can't wait till I position myself out of the company. I deal in realestate and am working on increasing my cashflow through passive methods rather than the 9-5. You can't take some of my comments to litteral. As VP my job is damage control and increasing profitability. Since my return to the company 5 years ago we have doubled in size and although my father doesn't admit it to me untill I drag it out but profitability has increased also. I only hope to, oneday, be free of that 9-5 because the truth is it not just the 9-5 its my life and it never stops. I just try to put the smartest and best people beside me and let those who do it best, do it.

P.S. Today my crew proceeded to crack a foundation of a house we had held up for two months to remove contamination from beneath the residence. My job, appease the screaming client, tell the project manager and the compaction engineer that they caused this due to thier direction of the work that went directly against what I explained was supposed to be done. Everyone wants to blame the contamination on us and take it out on me. I barely went to highschool, except for lunch and gym. In the mean time I have to deal with these COLLEDGE HIGHLY EDUCATED morons constantly! Can you understand my comments now?

[Adam]

Ski,

Regaurding the options positions. Yes your right, those positions are the ones I usualy keep my eyes on closest. The majority are long term options so I don't have to watch all that close at all time. I think I enjoy it. Definately more than my job. Unless of course I'm entertaining clients at a Go Go bar or playing golf. By summer I think I will be more comfortable with my positions and have stops orders in place. Currently I'm not using any stop orders on my option positions. Is it common practice to put stop orders on options?

[skiracer]

Your right Ski, I have been stopped out of several positions just to watch them rebound then some. I have learned to trust my stops. The losses where mainly from getting to know trading by computor. I chalk those up to learning lessons. My day job is just that(family buisness also) it pays well as I am the VP of our evironmental contracting company. However, I hate the line of work and can't wait till I position myself out of the company. I deal in realestate and am working on increasing my cashflow through passive methods rather than the 9-5. You can't take some of my comments to litteral. As VP my job is damage control and increasing profitability. Since my return to the company 5 years ago we have doubled in size and although my father doesn't admit it to me untill I drag it out but profitability has increased also. I only hope to, oneday, be free of that 9-5 because the truth is it not just the 9-5 its my life and it never stops. I just try to put the smartest and best people beside me and let those who do it best, do it.

P.S. Today my crew proceeded to crack a foundation of a house we had held up for two months to remove contamination from beneath the residence. My job, appease the screaming client, tell the project manager and the compaction engineer that they caused this due to thier direction of the work that went directly against what I explained was supposed to be done. Everyone wants to blame the contamination on us and take it out on me. I barely went to highschool, except for lunch and gym. In the mean time I have to deal with these COLLEDGE HIGHLY EDUCATED morons constantly! Can you understand my comments now?

I didn't mean to come off as lecturing you which I probably did an I sorry for that. It takes lots of money to live and accumulating it while your young is key in having it to make more later on. You're lucky in that you have something going for yourself to just step into. It seems that you have also had a positive effect there so it's been equitable for both sides. If you hate it so much you should leave but to where and someplace where the bucks are as good could be a problem. This trading thing is at best an educated gamble. The patience thing is key coupled with being a highly disciplined individual in control of one's facilities and emotions is the only road to being successful on some level. I think you hit the nail on the head with your statement regarding your job is damage control and increasing profitability. If you can get as much experience doing that and running that business while maintaining some increasing degree of profitability at the same time you are subtly becoming the person the you need to be in being successful at this trading thing. Just staying in an dealing with any situation you hate and being good at it while running an getting other intelligent people to understand your goals and do what you need them to do will develope those characteristic traits. You're just blinded by the surface factors because of your dislike for it and not realizing what subtle strengths are being developed by doing it as well as you apparently say you are doing it.
Another job or career might be initially more satisfying but in the end you're still going to have to be dealing with the same types of people and the same problems to deal with and solve. Nothing is a bowl of cherries except if you make it one.
It takes patience to develope patience. Dealing with things you hate and being good at it is a good place to start. Good luck and no charge for this session.