As an example, the 88-strike qqq put that expired today traded from a low of $1 to a high of $175 a contract. The trading volume was $31.7K. R/R: 175:1. Are there success stories/books/people/services that specialize in long side trading strategies of such cheap options ?
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- Thread starter tradingjournals
- Start date
huh?
Yeah, there's a lot of stories:As an example, the 88-strike qqq put that expired today traded from a low of $1 to a high of $175 a contract. The trading volume was $31.7K. R/R: 175:1. Are there success stories/books/people/services that specialize in long side trading strategies of such cheap options ?
http://www.powerball.com/powerball/pb_stories.asp
As an example, the 88-strike qqq put that expired today traded from a low of $1 to a high of $175 a contract. The trading volume was $31.7K. R/R: 175:1. Are there success stories/books/people/services that specialize in long side trading strategies of such cheap options ?
Is it possible to post a chart of that option and the run from 1 to 175? Thanks
A bit misleading.
But you could buy at 0.02 near the open (so $3 with commission).
And value at close 1.63 (so $162 with commission).
So a 54x increase. Do you think this trade pays off more than 1x per year at this rate, I don't.
There were a few factors which made this a good trade though, that the market gapped up a bunch and was overbought having gapped up several other days this week and showing weakness in particular on Thursday.
But you could buy at 0.02 near the open (so $3 with commission).
And value at close 1.63 (so $162 with commission).
So a 54x increase. Do you think this trade pays off more than 1x per year at this rate, I don't.
There were a few factors which made this a good trade though, that the market gapped up a bunch and was overbought having gapped up several other days this week and showing weakness in particular on Thursday.
Is it possible to post a chart of that option and the run from 1 to 175? Thanks
I do not have the chart, but only the stats I showed above. There used to be a place where I could plot the chart of an option, but they stopped the service. If someone knows of a charting place, I am also interested to know.
A bit misleading.
But you could buy at 0.02 near the open (so $3 with commission).
And value at close 1.63 (so $162 with commission).
So a 54x increase. Do you think this trade pays off more than 1x per year at this rate, I don't.
There were a few factors which made this a good trade though, that the market gapped up a bunch and was overbought having gapped up several other days this week and showing weakness in particular on Thursday.
I agree with you. The option I showed is something I followed at one point in the trading day, and then went back and looked at its trading range . What RR would make such trades more frequent?
I agree with you. The option I showed is something I followed at one point in the trading day, and then went back and looked at its trading range . What RR would make such trades more frequent?
If I were playing a same day option, I would be doing it ATM.
If I were playing a same day option, I would be doing it ATM.
But the RR would be "small", not be more than say 5? Among OTM, there should be higher RRs.
Trading those options is no more than gambling. you will lose 100% of your capital most of the time. Better trying one of the proven options strategies with positive expectancy of success.