Good to be on the site! This is my first post
I'm new to trading having completed my first few trades in the last 3 months. I am using Commsec, and am now familiar with the website layout for standard purchase/sale of stocks however I would like to make my first options purchase this week and do not fully understand the options trading screen, hoping someone who is familiar with it may have some helpful tips? failing that I can always call Commsec this week but thought I would try here first.
I am interested in a call position on BHP ending April next year. I have attached an image of the current options screen for at the money/in the money calls for April 2013. The two columns on the screen I do not understand are (screen shot attached):
Open Interest, and
No Idea what Open Interest means?
Is volume the amount available for purchase, or recent volume sold? Also is it contracts (i.e. #1 in volume column = 100) or individual options making up that contract?
Is there a way on Commsec to see what the Volatility is to time an entry better? or do I need to go elsewhere to find that? If so, any1 know a free site for volatility info?
Last question, from the call spreads available and my limited options knowledge, I have concluded that the most attractive entry would be the strike price @ 36.50 for 0.88 (current share price is 36.07), would that be a fair assumption or do more experienced traders like the look of one of the other entry options better? Just trying to get a decent grasp on this before making a purchase this week.
Thanks so much in advance for any tips - much appreciated !!!!