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Scalzo2016
Scalzo2016 Feb 22, 16 9:52 PM

Obviously the option reflects the stock, so you're saying you hold long(call) or short(put) based off of the overall performance of the stock, and that has worked for you? I'm also confused on how the value of stock goes down, but the bid and ask of the option increases.

Wakko
Wakko Feb 22, 16 10:22 PM

Not based on the overall performance: I look the stock chart to see where the price is at (resistance, supports, channel uptrend, channel downtrend and etc), I also look at stock volume, catalysts and, most important, how liquid de Option Chain is and the option interest at the strike price Im interested. Options price acts different with Puts and Calls, all based upon the strike price: for a Call with a 50 strike, the price will go higher when the stock price goes higher than 50; for a a Put wi

Wakko
Wakko Feb 22, 16 10:22 PM

for a a Put with the same strike, the Put price will go higher when the stock price goes lower than 50.

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