**Using the E.T.P.C. tool with Options trading?**

Delta, Theta, Gamma - Can be a real challenge to someone not familiar with options trading.

I have found that the

So, the basics to remember when trading options are:

For this example I will use a symbol

The

This is where using the

**Hawk's**recommendation is to first learn about choosing stocks and trading stocks. The**E.T.P.C.**tool can help in the decision making process as explained elsewhere on this website.I have found that the

**E.T.P.C.**tool, even for the experienced Option trader, can assist in making the probabilities just a little more in favor with trading options and this page will examine and explain the details.So, the basics to remember when trading options are:

**One option contract = 100 shares of stock.****The price of the option is less than the stock price.****Not all stocks offer options to trade.****You must have an options account to trade options.**For this example I will use a symbol

**X**that has a stock price (Egg #10) of**$25.80**and an option price (Egg #11) of**$.85**with a target price that yields a profit of**$25**.The

*Unknown Factor*is,**"At what price must we sell the stock or option to make****the Same $25****?"**This is where using the

**E.T.P.C.**tool can really help. Since 100 shares of stock = 1 options contract, then simple math tells us that the total cost will be either**$2,598. or $88**.( including fees or commissions). Study the photo's below.I have circled the areas where your chicken eyes should be focused.

Egg #10: The Yellow circles are for

Egg #11: The Blue circles are for 1 option contract (

The Red Circles are automatically calculated on the Buy Shares Page (see the second photo) and displayed immediately after entering the Data. The

The Percentage of profit is also calculated off the Total Cost (or Total Investment).

**Data Entry Page**Egg #10: The Yellow circles are for

**100**shares of stock @**25.80**for**$25**. Net Profit.Egg #11: The Blue circles are for 1 option contract (

**100 shares**) @**.85**for**$25**. Net Profit.The Red Circles are automatically calculated on the Buy Shares Page (see the second photo) and displayed immediately after entering the Data. The

**selling price of the stock**or the**selling price of the option**to make the**Same $25 profit**The Percentage of profit is also calculated off the Total Cost (or Total Investment).

So, which is a better trade - Buying and selling Stock or Buying and selling Options?

The final choice is yours, but the

The final choice is yours, but the

**E.T.P.C.**tool makes trading just a little bit easier!**Good trading to All!**

**Hawk**01-13-16