Search results

  1. Bum

    How bad can this option idea go? Billions in profit potential, but at what cost?

    Simplified view of buying calls/puts. (Will buyer exercise?) Trader buys call @ 50 strike price. This gives him/her right to purchase the stock @ 50. As long as the stock is below 50, the buyer isn't going to exercise the call when he/she can purchase it below 50 now in the market. Trader buys...
  2. Bum

    How bad can this option idea go? Billions in profit potential, but at what cost?

    The buyer of those puts paid for the right to short the stock @ 276. If the stock is currently trading above 315, why would he/she want to short @ 276 when it could be shorted much higher @ the current market price(above 315)? ***The calls won't be exercised unless the stock is above 315.
  3. Bum

    How bad can this option idea go? Billions in profit potential, but at what cost?

    Trader sold the put spreads to partially pay for the purchase of the call spreads. The puts would likely be worth $0.00 if the stock rose to $315 so trader would keep the premium collected. Puts would expire worthless at expiration which is what the trader wants since he/she sold them to a...
  4. Bum

    How bad can this option idea go? Billions in profit potential, but at what cost?

    Quote from article: "The $315 calls, if fully exercised could yield a net position of about $3.5 billion for the investor." Net position........ not profit.
  5. Bum

    When to use 132 fly rather than 121 fly?

    132 when you have a directional bias (trade puts for bullish & calls for bearish) 121 when you have a neutral bias (price likely to stay in a defined range) ***Not always but most often.
  6. Bum

    First good experience with power outage in 16 years full time trading

    Some trading platforms hold orders on your computer & others send the orders to the broker's server. If you trade with Ninjatrader for example, your orders will be held on your computer so if you lose power the SL/TP won't get placed with your broker. I think if you use TWS at IB then your...
  7. Bum

    Up 8,000% for the week

    Did you lose that "8,000%" gain?
  8. Bum

    Bull call spread vs Straight Call

    Hi Moolah, I completely agree with your complaint here. So many of the questions asked on this website are answered with just a mumbo-jumbo of data, info, etc... that doesn't even answer the question. Having said that I can't give you a definite Yes/No either but you seem to have it figured...
  9. Bum

    Managing gap-down risks during earnings season for stocks

    I would usually go out around 6 months with the spreads so I didn't have to babysit them so often. I usually bought 1 ITM call and sold 1 OTM position just far enough out to pay for the premium of the ITM call. That gave me nearly the equivalent of owning the stock but with so much less capital...
  10. Bum

    Managing gap-down risks during earnings season for stocks

    I held a 6 figure stock portfolio for quite some time but got frustrated with the drops in a small # of stocks so I closed most stock positions & converted everything to call spreads. Do the math and the returns are so much better with less risk. You'll be able to put 60-75% of your $$ back in...
  11. Bum

    cover a short put with a long put ?

    @TommyR is there any way you could complicate your answer a bit more and still not even answer the question being asked?
  12. Bum

    cover a short put with a long put ?

    Max loss in "option" dollars = $5- $.60 = $4.40 per option Convert loss to "real" dollars = $4.40 x 100 = $440 per option (1 option = 100 shares) So in the example I gave, you would sell 1x$55 put for $1.30 ($130), buy 1x$50 put for $.70 ($70) for a total credit of $60 ($130-$70). If price...
  13. Bum

    cover a short put with a long put ?

    If I read your question correctly, you're trading a credit spread so "Yes", you can. Example: Sell $55 put for 1.30 Buy $50 put for .70 Collect .60 and keep as long as stock closes above $55 @ expiration. ***Max loss >> 5 minus .60 = 4.40 (without commissions) ***If you're an experienced...
  14. Bum

    Eur/usd Options

    M6E= Micro Euro Futures contract FXE= ETF for Euro currency
  15. Bum

    Up 8,000% for the week

    His gold 1400 puts trade isn't dead......yet. :) No daily close above 1504.
  16. Bum

    Up 8,000% for the week

    So you turned $5,000 into $400,000 in 1 week?
  17. Bum

    U.S. Corn Acres

    I don't agree that the "government" (USDA) is lying to us about the crops. The biggest "issue" with the data the USDA releases is that they use "outdated" information. Rather than use an online survey they mail out the forms to farmers, wait for the forms to be mailed back then count & record...
  18. Bum

    Looking for strategies under NinjaTrader 8

    Site to download strategies/indis for NT8. Haven't tried any strategies. https://ninjatraderecosystem.com/user-app-share/?fwp_new_usa_category=ninjatrader-8-strategies&fwp_sort=user_submitted_app_creation_date
  19. Bum

    From $60K to $600K

    You being Alex W.? Wow, now that's crazy. I've only been on this site a couple weeks but I was in AW's trading room years ago for about 6 months & I'm quite certain you're not AW. He's probably busy flying his Cessna. :D Sold his trading room a few years ago. Not sure what good a trading room is...
  20. Bum

    US declares China currency manipulator

    https://www.cnbc.com/2019/08/05/kyle-bass-chinas-currency-would-drop-30percent-to-40percent-without-support.html
Back
Top