COOL Tool and the math
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COOL Tool and the math Paul, I can do that level of math. Thank you for writing the formula!! I don't know why I was intimidated by the formula before; you wrote it simpler than I have seen it, perhaps <G> so the math is: premium/strike x 365 days/divided by days left Etana On Thu, Sep 13, 2012 at 11:42 AM, Paul Madison <TheCOOLClubDude@gmail.com> wrote: > There are several in the Greystone Trading Group who are into TA but I > personally am not. I believe in fundamentals, first and foremost, so no I > don't look at charts. > > I like the ALGN 33's at anything .65 and higher as it gives you 20%+ APR > ...33 also happens to be at my buy level. > > I don't know anything about TSCO, DVA, ROST, or CSTR from a Fundamental > standpoint so strictly from an APR standpoint: > > TSCO .80/85 x 365/36 = 10% nope > DVA 1.10/90 x 365/36 = 12% nope > ROST .60/62.5 x 365/36 = 10% nope > CSTR .70/45 x 365/36 = 16% nope > > Although I think the COOL TOOLs are fun, the dirty little secret is the math > is not hard to calculate APRs. The more you learn the math then you don't > need anybody else's tools or you can build your own tools. > > so the math is: premium/strike x 365 days/divided by days left > > pretty simple really > > Paul Madison > > TheCOOLClubDude@gmail.com > > www.bivio.com/COOL_Club > > > On Thu, Sep 13, 2012 at 10:22 AM, ETANA FINKLER <etana.finkler@gmail.com> > wrote: >> >> Some ideas for Puts from today; I have not yet placed these or examined in >> Cool Tool >> comments welcome >> Mr. Cool, do you look at chart patterns? >> >> Etana >> >> >> 33.00 ALGN Oct 20 2012 33.0 Put; 0.600.75 premium 0.174 delta  earnings >> 10/25 (Nav AAB) >> >> 32.00 ALGN Oct 20 2012 32.0 Put 0.450. premium 0.139174 delta  >> earnings 10/25 (Nav AAB) >> >> 85.00 TSCO Oct 20 2012 85.0 Put; 0.650.80 premium 0.121 delta  earnings >> 10/24=yahoo (Nav BAB) >> >> >> 90.00 DVA Oct 20 2012 90.0 Put; 0.851.10 premium 0.176 delta  >> earnings 10/29 (Nav BAB) >> >> 62.50 ROST Oct 20 2012 62.5 Put; 0.500.60 premium 0.18 delta  earnings >> 11/15 (Nav AAB) >> >> 38.00 FAST Oct 20 2012 38.0 Put 0.500.60 premium; 0.191 delta  earnings >> 10/11 >> >> 45.00 CSTR Oct 20 2012 45.0 Put; 0.600.70 premium 0.162 delta  >> earnings (Nav BCB) > > > > >  Etana etana.finkler@gmail.com I want to correct my assessments below. What I should have said on some of them is that they do not fit my trading strategies (sell above 20%) but that does not mean that they might not fit someone else's strategies. Some people do a more conservative approach and go further out of the money and expect it to expire worthless. Their opening APRs are going to be lower. But they normally do not have to worry about buying back. This is a very legitimate approach! I have some I trade with who think my 20% is too low and they want a minimum of 30 or 40%. So I should not have been so quick to say nope as only you can answer what your trading strategy is. The only thing I encourage is developing an approach/strategy and sticking with it. Jumping around can cause some problems. Find what works for you and then as Nike says "just do it" Paul On Sep 13, 2012, at 11:02 AM, ETANA FINKLER <etana.finkler@gmail.com> wrote: > Paul, > I can do that level of math. Thank you for writing the formula!! > I don't know why I was intimidated by the formula before; you wrote it > simpler than I have seen it, perhaps <G> > > so the math is: premium/strike x 365 days/divided by days left > > Etana > > > On Thu, Sep 13, 2012 at 11:42 AM, Paul Madison > <TheCOOLClubDude@gmail.com> wrote: >> There are several in the Greystone Trading Group who are into TA but I >> personally am not. I believe in fundamentals, first and foremost, so no I >> don't look at charts. >> >> I like the ALGN 33's at anything .65 and higher as it gives you 20%+ APR >> ...33 also happens to be at my buy level. >> >> I don't know anything about TSCO, DVA, ROST, or CSTR from a Fundamental >> standpoint so strictly from an APR standpoint: >> >> TSCO .80/85 x 365/36 = 10% nope >> DVA 1.10/90 x 365/36 = 12% nope >> ROST .60/62.5 x 365/36 = 10% nope >> CSTR .70/45 x 365/36 = 16% nope >> >> Although I think the COOL TOOLs are fun, the dirty little secret is the math >> is not hard to calculate APRs. The more you learn the math then you don't >> need anybody else's tools or you can build your own tools. >> >> so the math is: premium/strike x 365 days/divided by days left >> >> pretty simple really >> >> Paul Madison >> >> TheCOOLClubDude@gmail.com >> >> www.bivio.com/COOL_Club >> >> >> On Thu, Sep 13, 2012 at 10:22 AM, ETANA FINKLER <etana.finkler@gmail.com> >> wrote: >>> >>> Some ideas for Puts from today; I have not yet placed these or examined in >>> Cool Tool >>> comments welcome >>> Mr. Cool, do you look at chart patterns? >>> >>> Etana >>> >>> >>> 33.00 ALGN Oct 20 2012 33.0 Put; 0.600.75 premium 0.174 delta  earnings >>> 10/25 (Nav AAB) >>> >>> 32.00 ALGN Oct 20 2012 32.0 Put 0.450. premium 0.139174 delta  >>> earnings 10/25 (Nav AAB) >>> >>> 85.00 TSCO Oct 20 2012 85.0 Put; 0.650.80 premium 0.121 delta  earnings >>> 10/24=yahoo (Nav BAB) >>> >>> >>> 90.00 DVA Oct 20 2012 90.0 Put; 0.851.10 premium 0.176 delta  >>> earnings 10/29 (Nav BAB) >>> >>> 62.50 ROST Oct 20 2012 62.5 Put; 0.500.60 premium 0.18 delta  earnings >>> 11/15 (Nav AAB) >>> >>> 38.00 FAST Oct 20 2012 38.0 Put 0.500.60 premium; 0.191 delta  earnings >>> 10/11 >>> >>> 45.00 CSTR Oct 20 2012 45.0 Put; 0.600.70 premium 0.162 delta  >>> earnings (Nav BCB) >> >> >> >> >> > > > >  > Etana > etana.finkler@gmail.com 
