Delta and Theta are the two most important indicative selection to an option over the weekend. One Theta is the time decay of the option over the day that it does not trade and days that it trades.

So we will be losing around $20 - $21 dollars per 1 contract held in NFLX in this example.. NFLX needs to over come this with a 5-10 price swings which its capable of doing.

Math:

Call Theta is .21. 100 equal number of share in 1 (one) contract for the option. .21 x 100 = $21.00
lose of value per day (this includes weekends).

Call Delta is .41 100 equal number of shares in 1 (one) contract for the option. .41 x 100 = $41.00 stock price must move 1 dollar per share to get .41 move in the option.

Same thing works for the Puts, as well.

So in closing, the Delta is high enough to overcome the Theta (Time Decay) if the underlyn stock can move 1 points or more in a session.

NFLX 235 May 11 Calls and Puts......

AAPL is not moving with the market, as well as other companies that follow with the S&P 500. We straddled the 350 Call and 350 Put, thinking it was a better deal. We held it overnite and stock dropped -3 point and the options on the puts side barely moved. Then the stock raced back to near the open price. Then started to give it all back in near mid trading day.

Oh well, we where able to make something on it in the morning and not have to bother with a Friday trading day.

InPlay After Earnings: APPL 345 Puts were in play this morning after Apple earnings were released after the bell - yesterday. In .26 - Out .42 = .16 before fees and commission. OptionEx was today, due to the markets will be closed on Friday for "Good Friday". Overall, the earnings did not make a different, as we play the after effect of the report.

One asks "How Much Computer Does One Need To Trade Stocks?" You have to ask yourself (3) three simple questions:

1. Desktop


2. Laptop


3. Monitor Size - Screen Real Estate

Most new traders will opt for the Desktop computer, also known as the "Family" computer. In terms, it has all their stuff (Data Files, Family Photos, and etc.). The preference for a standalone trading computer is highly suggested, as kids and family can jack up a computer faster than no other. If you trade on the go a laptop is ideal, but with the limited monitor size it could be a setback.

How many monitors? That's a personal choice that you'll have to make, but don't make the mistake of thinking more is always better. Three - 24" monitors should be sufficient enough for the average trader. Keee your charts and screen information to a minimum, which willl keep your required screeen real estate to a minimum. Keep it Simple.

With regards, to a trading computer, in my opinion, the truth about CPU and RAM requirements for the average trader really comes down to this. Any new, off the self computer is adequate for trading. Currently out of the box systems will have ths following features.

1. Operating System: Windows 7 (64-bit)


2. Memory 4 GB of RAM (Expands to 8 GB of RAM)


3. CPU Type Intel Core i3


4. CPU Speed 2.53GHZ


5. Warranty 1yr

Name brands are the best (Toshiba, Dell, HP, Lenovo and Apple), but there is an added price for name branding. Every 6 months there will be a bigger better system out there. Honestly, if you don't want to spend a lot on a trading computer, then don't. A plain vallina Dual Core will do just fine. Just don't go any lower than 2 GB Ram.

Streaming quotes and charting packages (Java based) just don't put a heavy burden on the CPU like, games (Standalone - download to the hard drive). Browers based programs usually employ Java to make there platform accessible across multiple Operating Systems (PC, APPLE, LINUX and etc.). These browers-based systems provide improved flexiblity, as they do not require a particular operating System thy just require a Java Virtual Machine or a standard compliant brower. Most trading firms are now taking advantage of 64-bit multicore technology. Some firms are lagging behind, but you can still run them on Window 7.

This company, we believe would not move, as it its sweet time in the option to move and we passed on this one and selected NFLX to play for the day. All in all it was a good day!!!

NFLX 235 Calls and NFLX 240 Calls rocked the house on a down day in this type of market.

NFLX 235 Calls 1.65 to 1.70

NFLX 240 Calls .98 to 1.16

PCLN was on a tear to the upside after 10:45 posting.

PCLN calls were on order for this day!!!

Trading Date: 4/08/2011 Stock Traded: NFLX Option Strike NFLX AprWk2 235 Put. Expiration 4/08/2011 # of Contracts 100 Entry Price: .64 Exit Price: .79 Commission: $300 total in and out Fees: $2.46 total in and out Reason for getting in: The overall market has been a chop-fest to a say the least. And on an intra-day basis this appears to be a good time to play to the downside. Quick and the Dead, Scapling is your best trading tool during these market times.