How to predict high yield option trades??

Question

what are the best methods of finding the right option picks???

Answer 1

The two questions you asked are not related.

<<<how to predict high yield option trades??>>>

The option trades that have the potential for the highest yields are also the ones that have the highest chance of resulting in a loss. These trades ususally involve buying way out of the money options for $0.05 or less. This is akin to buying lottery tickets. You will almost always lose your entire investment but, if you are very lucky, you can make a huge profit.

<<<what are the best methods of finding the right option picks???>>>

It is certainly not by looking for the highest yield option trades. The best method is to read multiple good books about options in order to learn how to control the risk factors associated with your trades. These risk factors are called "the greeks" and measure the impact of changes in different factors on either the price of the option or other greeks.

You should also learn the weaknesses of the option pricing models and how to exploit them.

There are no shortcuts.

Answer 2

If you're asking a question this general on Yahoo Answers, you probably shouldn't be in options.

Answer 3

There are literally hundreds of different ways to trade options profitably. This site will give you a lot of information about it.

Answer 4

Before you start trading options you should study a little more and would know not to ask this question here on YA

Here are some site for you

http://www.schaeffer.com/

http://www.zacks.com/

http://screen.morningstar.com/StockResul...

http://www.options-trading-advice.info/

http://www.optionseducation.org/



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