Reader Mail
Now, as we do every Friday, let's take a look at your emails.
I have enjoyed your columns and your DITM strategy for many months now. How are you able to come up with an option pick each day? Do you use an option screener to help narrow down the list? Do you find a stock that has been beaten up too severely and jump on that? How do you come up with your limit price? Do you average together the 21-, 50-, and 200-day moving averages?
I am just curious because I would like to have the ability to find picks on my own. Right now, I am very dependent on your picks.
-- Adam House
Thank you for the kind words. I have no easy answer for you. The bottom line: I use many sources; my favorite is
Stockpickr!
I am just beginning to get involved in buying options. I still need to understand some of the terms and language. Are there any sources on the net that I can use?
Beginners to the world of options can find a wealth of information for free at Yahoo! Finance, Google Finance and MSN Money. Additionally, you have a great resource right here at
TheStreet.com: Steven Smith, senior options columnist, can help you understand every aspect of options with his "
Options Alerts" newsletter.
If is a basics options primer you want, check out the free options at "
EduCenter." It has articles about options, as well as a glossary of options terms. For the terms seen most often in my column, look for the glossary at the bottom of the Stat Book. In addition, you should go directly to the "Holy Grail" of options information found on
the CBOE Web site.
Lenny Dykstra
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