Let's not forget our other questions that came in! This video shows the final segment of our Open Discussion from August 23rd. Here is a review of the topics covered in this segment:
Fernando: How can we find Overvalued or Undervalued options? (0:00 to 5:24)
- We get into the PowerOptions search tool to show the criteria available to screen for overvalued and undervalued options.
Darrell: I was assigned a 50 strike short call and exercised at 51 (Bear Call Spread). Am I responsible for the 1 point difference? (5:25 to 8:31)
- Yes, this is a full loss credit spread, but the margin would have already been put up.
Edison: Related to Married Puts: Can we sell an income method if the stock is near the put strike, or does the stock have to be above the put strike price? (8:33 to 14:00)
- We discuss some of the rules in The Blueprint, take a look at using one of the Riskless Spread Trades in this approach, and more.
Darrell: I recall seeing a test that said over 100 trades, if you closed most at a 25% expected gain you would perform better than closing at 30%, 50% or 70% expected gains. Can you discuss? (14:02 to 23:01)
- This was not our research, but we take a look at the possibilities using the Trade Simulator tool at RadioActive Trading.
23:02 - End: Wrap Up
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