I've read about everything on options such as implied volatility, open interest, etc. It explains it all very well but I have yet to find anyone offering an actual sequence to making a purchase. I trade options and my system consists of analyzing the stock and what I think it's going to do. I confess that I have been relatively successful (perhaps lucky) but there is much more to it than that such as where is the implied volatility, historic volatility, open inerest, etc, etc, and combined, what do they tell you to do and why.
I have read some articles implying that a person should consider making a purchase on what the price is relative to the value of the stock. However, the article never explained how you decide this.
If a professional options trader makes a purchase he does so based on a number of criteria. What criteria?
Does anyone know where this information is or is it a secret?
Thanks for any info. Make lots of money!
Don
