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Author: Phileo Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 377  
Subject: mini-FAQ Date: 1/17/2006 12:39 AM
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Origins of this Board:
It all started with a poster describing his investing strategy on trenchrat's board:
http://boards.fool.com/Message.asp?mid=23524038
The gist of the concept was to focus on finding and researching the very few companies where the odds are high that the market has mispriced its stock. Once you have found those few stocks, then bet big on them by investing in options and LEAPs.

From there, the thread went on to discuss the possibility of creating a separate board for discussing the part of that strategy regarding investing in options and LEAPs. A poll was conducted to gauge interest in a separate options board. At least 12 members from trenchrat's board confirmed interest in posting to the new board, with another 20 members interested in reading the content. With general interest and support confirmed, this board was created.

Yes, there is already an options board here at TMF, but the difference is that this board was started by active members of trenchrat's board.


What about doing the research to find the few companies that the market has mispriced?
A good part of that objective is pursued in this board:
http://boards.fool.com/Messages.asp?mid=23555353


Getting Started:
If you're new to Options trading, you really should read this first:
http://boards.fool.com/Message.asp?mid=23563738

Then, acquire an education by reading through these sites:
http://www.optionetics.com/education/work/options.asp
http://biz.yahoo.com/opt/education.html
http://www.optionsxpress.com/educate/investing101/why.aspx


Options Charting
Your trading account at your broker should provide real-time options charts. However, if you don't want to login to your trading account, you can get delayed options charts from this website:
http://www.quote.com/qc/livecharts/default.aspx?symbols=OPRA:AAODJ

Replace "AAODJ" with the ticker of the option that you wish to chart. The only drawback with the above link is that it's in a demo mode which times out (after 3 minutes) to a page asking you for $10/month to take it out of demo mode. When that happens, you need to press the "back" button to get back to the options chart you were looking at.
It's annoying, but what I like about it is that you can overlay some basic TA indicators (like a 15d MA, or a MACD). It's a good free method for studying some options charts without having to open up your own brokerage acct.


Brokerages
www.OptionsXpress.com - this is an online discount brokerage with a focus on options trading. They provide real-time option quotes and chains, plus a host of other options analysis tools. You do have to fill out all the necessary forms to open an actual trading account with them in order to gain access to these tools, but there are no account maintenance fees, nor do you have to deposit any money.

www.interactivebrokers.com - this is another online discount brokerage that provides good support for options trading. They also charge very low commissions for trading options contracts, perhaps the lowest cost of the three mentioned here.

www.thinkorswim.com - this online discount brokerage also offers extensive support for options trading. The interesting twist with this discount broker is that when transferring an account to them, they offer you the choice of using their commission schedule, or honouring the rate schedule of your existing broker.


Options Analysis Tools
www.stockoptionsignals.com - interesting site listing possible option plays for a specified ticker
www.cboe.com/DelayedQuote/QuoteTable.aspx - delayed option quotes

http://biz.yahoo.com/opt/ - Yahoo's Options Centre, with links to most actively traded options, options news, and basic analysis tools.

http://www.optionstrategist.com/free/analysis/calcs/index.html - free options calculators

http://www.oedge.com/
"OptionEdge 2.1 is a free stock option trading and analysis software package for Microsoft Excel. The software was designed to explore the profitability of various stock option trading strategies. Microsoft Excel 2000 or higher must be installed for OptionEdge 2.1 to function."



Other helpful links

www.shortsqueeze.com - reports short interest for a specified ticker
www.secform4.com - reports any recent insider buying/selling.
http://boards.fool.com/Message.asp?mid=23539902 - Links to various stock trading strategy websites.
http://boards.fool.com/Message.asp?mid=23550034 - One poster describes his options strategy
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Author: halon090 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 80 of 377
Subject: Re: mini-FAQ Date: 1/17/2006 12:59 AM
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Nice post Albert. How about adding to it that calls and puts can be placed in a ROTH just that very few allow it. Let's bang the FAQ around for a few days then submit it to Fool for them to add to the right side as a full blown FAQ.

Couldn't help but notice that unlike the most of the other option boards here at TMF, this one actually has some activity.

nathan

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Author: obelix1 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 85 of 377
Subject: Re: mini-FAQ Date: 1/17/2006 10:57 AM
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I found some other fool posts that might be good in the "Other helpful links" section:

http://boards.fool.com/Message.asp?mid=22549468 - has a bunch of links to TMF posts by TMF1000 and emiller8988, good reading, some inaccessible due to subscriptions

http://boards.fool.com/Message.asp?mid=16177805 - Option tutorial by TMF1000 from Foolish Collective board - very good info on terminology and some basic strategies

-obelix

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Author: keahou Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 318 of 377
Subject: Re: mini-FAQ Date: 4/8/2006 5:31 PM
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Phileo,

Congratulations for founding this board. You have presented a wealth of information for option investors. It is a tough game. Several investment letters that I used to subscribe to claimed that option buyers lost on their wagers over 75% of the time due to the time premium, etc. So, let this be a warning to all of us.

I am still in the same parameters as when we discussed my concept. Basic underlying stock is the secret to success. In just my only 2 stocks, I'm hoping that they have a long life for this strategy.

Since the inception of this concept in late 2005:

http://stockcharts.com/def/servlet/SC.web?c=RMBS,uu[m,a]daclyyay[dc][pb50!b200][vc60][iUb14!La12,26,9]&pref=G

http://stockcharts.com/def/servlet/SC.web?c=eln,uu[m,a]daclyyay[dc][pb50!b200][vc60][iUb14!La12,26,9]&pref=G

Rambus has been a stellar performer and may be poised for even better gains with a favorable jury verdict next week. Correspondence with the WSJ indicates that they are waiting for the verdict before any more articles.

ELN is currently shackled by the FDA's lethargic handling of their reintroduction appeal. Very difficult to predict the labeling and reporting requirements that are pending. I have transferred some ELN positions into RMBS options, which has been very rewarding. Still have quite a few 2007 17.5 LEAPS in ELN. Hoping the FDA is not unreasonable and quickly resolves this issue, their deadline being 6/28. Tysabri was pulled 16 months ago. The MSers sorely need Tysabri and are putting unrelenting pressure on the FDA. The WSJ 4/7 article was one plum that these efforts seem to have instigated. The naysayers have the market convinced that there will be significant restrictions that will impede uptake. This will be tough to evaluate once the FDA exposes their hand. Neuro1111's appraisal will be a key factor in that decision.

This "rifle" approach has been very rewarding thus far. After the close y'day, my combined IRA and a trading account are up 785% since late Oct.

All good things come to an end, they say. Very alert to that possibility. Searching for a replacement to ELN if necessary. YMI looks very interesting. It doesn't seem to be understood by many, including me, and seems to be below the radar to some degree.

So thanks again for providing this forum. Rat's group don't seem too interested in this venture.

Keahou







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Author: otter6 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 319 of 377
Subject: Re: mini-FAQ Date: 4/8/2006 8:32 PM
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So thanks again for providing this forum. Rat's group don't seem too interested in this venture.

Keahou


the difference between those who trade options the way some of us do and TR's boardmembers is simple. They don't necessarily do FA on a company, they take what the chart gives them.

with option traders, we have to bet that the move WILL happen. Cause if it doesn't, we stand to take a significant hit just by flipping an option. TRs' approach is much better for the way they trade, a trade blows up on them, they can recognize it and get out rather cheaply in comparison to an option trade that blows up..

but nothing like an ELN or RMBS in the stable to take a position on...

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Author: Adenovir Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 354 of 377
Subject: Re: mini-FAQ Date: 6/3/2006 9:04 PM
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Business week online has a free section for getting complete historical charts on options...

http://host.businessweek.com/businessweek/Listed_Options.html?Symbol=QAV%20LZ

Enter your stock symbol and then select the option of interest from the list. No TA features, but hey, free is free.

Adenovir

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Author: keahou Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 363 of 377
Subject: Re: mini-FAQ Date: 9/17/2006 3:33 PM
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Phileo

Thanks for carrying the ball by originating this board. Just posted to help revive this board.

Was thinking that another title might draw more interest. You might recall that "Rat" changed his not too long ago. Some title including LEAPs might be a choice.

Regards,

Keahou

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