Links to Stock Option Trading Resources...

Tip #8 - Other Stock Option Resources

thinkorswim, Inc. - Online broker specializing in stock options – Excellent software-based Options platform. Our choice as the absolute best broker for option trading.
Chicago, IL (866) 839-1100 www.thinkorswim.com

This Chicago brokerage firm with the unlikely name thinkorswim is our clear choice as the best of all option-friendly brokers. For openers, they have absolutely the best software. For several years, I paid over $250 a month for a service delivering real-time complete (bid-asked prices, sizes, volume, Greeks, etc.) options chain screens – it comes free at thinkorswim, along with dozens of other software programs for the serious option trader. Even more important, our experience has shown that thinkorswim achieves consistently better spread executions than any other broker we could find – these could save an active trader thousands of dollars each year. You may select any of several commission schedules which are equal to (or lower) than the rates charged at OptionsXpress (and other discount option brokers). But perhaps the biggest reason of all to choose thinkorswim is their superior level of personal service – you can always talk to a real person, and there is no extra charge for orders placed on the phone. I believe that there is no good reason to choose any other broker for option trading than thinkorswim. I am not the only person who feels this way - Barron's* ranked thinkorswim as the #1 web-based online broker in 2006 and 2007.

*thinkorswim, Inc. firm was evaluated versus others in eight total categories including investment types that can be traded, the quality of screeners provided to sort through stocks, options, or funds, the consumer-friendliness of trading screens, overall ease-of-use and ability to be customized. thinkorswim, Inc. topped the list with the highest weighted average score.

thinkorswim Disclaimer:  “thinkorswim, Inc. has entered into a Marketing Agreement with Terry’s Tips  whereby thinkorswim pays Terry’s Tips to recommend thinkorswim as its executing broker.  The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Terry’s Tips by thinkorswim and/or any of its affiliated companies.  Neither thinkorswim, Inc. nor any of its affiliated companies is responsible for the privacy practices of Terry’s Tips or this website.  thinkorswim, Inc. does not warrant the accuracy or content of the products or services offered by Terry’s Tips  or this website.  Use of this site and its services and/or products is the decision of and at the discretion of the individual or entity choosing this service and/or product.  thinkorswim, Inc. makes no guarantees or warranties of any kind and of the products or services offered by Terry’s Tips or by or through this website and shall have no liability therefore.”

Options Graphing Software

There are many options graphing software packages out there, most of which do far more than the average investor would ever need. Of course, they cost too much as well. I have found one package that I absolutely love. It does everything I want (and lots more), and is very inexpensive. Most of all, it's easy to use. What I like best about it is that once you enter your positions, you click an update button, and the current market prices are looked up for you, and the graph updated.

Each week, for each of our portfolios, I create a Risk Profile Graph like this:

(Note: This graph was created on November 18, 2006 when the Sears 2 portfolio was worth about $10,500 and the stock was trading at $173. The portfolio originally started with $10,000 on August 15, 2005 and when it more than doubled in value ten months later, $11,000 was removed from the account so that original investors got all their money back plus $1,000 and are now dealing entirely with profits.)

This graph lets me know what profit or loss will result from my current positions at the next expiration at each stock price. I can see that the portfolio will make about a 20% profit if the stock lands anywhere between $170 and $180 in four weeks. The graph gives me a visual reading on my risk at different stock price scenarios, and helps me decide if I should make an adjustment. Of course, I can enter the several different possible adjustments and examine the graph with those new positions before I make the actual trades.

You can purchase the Excel Option Calculator software here. The price is only $37.90. If you enter the Discount Code TT124, it will cost you $5.00 less as a special offer to people who found this software through Terry’s Tips . I recommend it highly, and use it every day myself.

Traders Accounting – Highly recommended tax experts specializing in online trading – well versed in options
Bellevue, Washington
(800) 938-9513
Click here for Traders Accounting (Discounts for Terry's Tips Customers)

Traders Accounting comes highly recommended from many folks, including Terry’s Tips subscribers. They provide tax consulting, entity formation and 401(k) services that help you efficiently establish and maintain your trading business. Terry’s Tips customers receive $75.00 off their Tax Secrets for Traders: Home Study Course as well as discounts on other services.

In the book, I distill 30 years of option trading experience into a clear statement of an extraordinary options strategy. It is called Making 36%: Duffer's Guide to Breaking Par in the Market Every Year, In Good Years and Bad. The book is written with a golf motif to make it a little more interesting, but it is all about this unique way to make exceptional gains using stock options.

There are 18 chapters, each one only two or three pages long, so you don't have to spend hours learning all about options to get the basic idea. If you are interested in learning more about options, there are several appendices that will give you a good understanding of this investment alternative, including a discussion of the "Greek" measures of option prices.

The book was originally published at $19.95. You will receive an electronic version so you can start right away, and the paperback version will be mailed to you free of shipping and handling charges. Order it today at www.Making36Percent.com (Enter the discount code TEE and your cost will be only $12.94, including shipping by First Class mail).

Here is what the book looks like (but the good stuff is inside):

This could be the best investment decision you ever make. At least, you won't be risking much to learn the strategy. And it could change your investment outlook for a lifetime. Total cost, including shipping only $12.94 - www.Making36Percent.com (Enter the discount code TEE).

CBOE – Chicago Board Options Exchange - Best of all educational resources for stock options

Complete education program, list of option symbols, LEAPS, volatilities, Black-Scholes calculation module, everything you could ever need for learning about stock options. Create your own home page. Everything's free! http://www.cboe.com/Home/

Back to TOP