Hi guys, this place looks a bit dead, not sure if anyone still visits?
I'm looking for some help with Options.
I've started paper trading options, as in buying a call before the price of the underlying stock moves up, and then trying to sell it when the stock moves up.
Things i can do:
1 - Predict the direction of the stock, as well as the price it will hit with 80% accuracy over a 10 day window.
2 - Buy the option as there is enough liquidity
3 - Sell the option as there is enough liquidity
However, I'm just not understanding why I'm having trouble making money (on the paper trading).
E.g. 1 - Stock 1 is at $10, I'm thinking it will go to $10.30 over 10 days. I buy a CALL at the money with a +2 month expiry.
6 days later, stock hits $10.30 but the call is worth LESS what i paid for it??
E.g. 2
Stock 1 is at $10, I'm thinking it will go to $10.30 over 10 days. I buy a CALL at the money with a +2 month expiry.
8 days later, stock hits $10.30 and the call is worth MORE what i paid for it??
I'm having a hard time finding a link here. Also, I'm much, much more successful with CALLs then PUTs, even though they are both moving the same distance....
I've made money buying and selling stocks as they move up and down but honestly its exhausting (30-50 trades a month + overhead) and i've seen options increase in value by 100% - 500% for a 3-4% move in the stock price....I'm missing out!
Argh its doing my head in
