Is it possible to trade stocks JUST by the volatility of a stock? Scalp trade,etc.? Whether the stock trades daily or only weekly? Say if some stocks have a volatility of 10% and others 50%?
2006-07-01 13:31:17 · 5 answers · asked by westphalia1 2 in Business & Finance ➔ Investing
Yeah playing volatility can be a very good idea but you need to pick the right stocks. Stocks lika AAPL and X (US steel) have been very good for me, especially if you use options, the returns are tremendous.
2006-07-01 18:07:53 · answer #1 · answered by rajatharjani 4 · 0⤊ 0⤋
Of course...but pick solid companies that have the volatility. Stay away from the 'bulletin board' stocks. I've been playing the volatility in Southwest Airlines (LUV) and Oracle (ORCL). Works great.
2006-07-01 22:53:02 · answer #2 · answered by GC 1 · 0⤊ 0⤋
Yeah, yeah, the Volatility Index (VIX) from the Chicago Board of Trade. I believe they have actually introduced an ETF (exchange-traded fund) just for this index. It is straight-up gambling, nothing more.
2006-07-01 20:36:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You're going to buy pk's and OTC's?
stay away 99.9% of those companies are shams
Try Stock Options (leaps)
if you are looking to make quick money 10% - 100% gains
very safe if done right
2006-07-02 01:22:44 · answer #4 · answered by Olivia 4 · 0⤊ 0⤋
Very difficult but possible. However the risks are high. Look at me, I invested in DRL, BPOP, FBP and RGF and they are all down. Most safe if you stay long.
2006-07-01 20:37:35 · answer #5 · answered by Nasdaq W 2 · 0⤊ 0⤋