Anatomy of a fun 2-day trade (AMC +$60k)

[Dustin]

Do you get rebates for options only for limit orders? I find it hard when getting out at a loss and options are trading really low with the comms really adding up. Taker orders only make it worse and you usually don't have the luxury to exit slowly.

I the trade is clearly failing then I'll just hit the bid with Lightspeed smart router which doesn't charge taker fees. Yes, I only get rebates for adding with a limit order.

 

[Dustin]

Is it not possible that with a few hours to go, that penny bid could climb higher? I would think that over dozens of trades, for each trade that you exit for that penny profit so you don't take the full loss on the option, there are some that will make it back to 10 or 20 cents.

I do lot of stats on my trades and it's amazing how many turn around and go right back to entry if either i just give it more time or at least one scale-in lower down. It comes from the idea that I'm never that good about knowing which direction its going on a minute by minute basis. If I exit because I think I'm wrong then it means that it should conceivably go in the other direction, but this is easily false half the time. So this means that either being more patient or averaging in at a better price turns out to be better over a series of trades rather than just taking the exit.

So I guess that what I'm saying is that if there is a floor to how much I can lose and it's already at that level or 1 cent from it then it doesn't make much sense to take the exit if there is still hours to go for the trade to turn around.

But of course I would love your take on this.

If I'm 90% sure the trade is dead then I will take any bid. Even at a penny if I have 200 contracts that's $150 saved ($200-$50 commissions). These add up.

 

[johnarb]

Yes, I like 100% defined risk, so that was $5k max loss. If the trade looked like it was going to fail then I would have tried to sell for 50% loss or whatever was left on it. The trades I get stuck with that go to zero are usually the nickle increments because even if there's just a penny bid I'll take it.

Thanks for the breakdown of your trades

I used to trade IWM, SPY, QQQ or DIA options countertrading amateur hour big moves and closing midday or eod. I eventually blew up my account doing that (not enough capital, methinks) but there were times I did ok. I did better with options on swing trading

I watch AMC as I have a friend who bought it a few weeks ago. I keep telling him it's a gamble, he might do ok, but it's not a real investment

This seems like free money every Friday on the weekly options, pick a position, put or call and on a double, close it out and be done for the day

AMC trades like a drunken sailor. I can't do this myself, got a huge tax liability for next year already and not gonna qualify for Trader status

It would be nice if you can start a journal so others can enjoy reading about this every Friday

What's the spread on the 16c 48p?

 

[Dustin]

Thanks for the breakdown of your trades

I used to trade IWM, SPY, QQQ or DIA options countertrading amateur hour big moves and closing midday or eod. I eventually blew up my account doing that (not enough capital, methinks) but there were times I did ok. I did better with options on swing trading

I watch AMC as I have a friend who bought it a few weeks ago. I keep telling him it's a gamble, he might do ok, but it's not a real investment

This seems like free money every Friday on the weekly options, pick a position, put or call and on a double, close it out and be done for the day

AMC trades like a drunken sailor. I can't do this myself, got a huge tax liability for next year already and not gonna qualify for Trader status

It would be nice if you can start a journal so others can enjoy reading about this every Friday

What's the spread on the 16c 48p?

I'm considering a journal, but just to post occasional stuff like this. The spread on those are a penny, they are thick.

 

[ChipShotTrader]

I the trade is clearly failing then I'll just hit the bid with Lightspeed smart router which doesn't charge taker fees. Yes, I only get rebates for adding with a limit order.

Dustin,

I started day-trading NASDAQ stocks on First Level, which would become Lightspeed, for the first decade of my trading life. The other crew at Heartland, was using the Watcher. I have been focused on futures during my second decade, and use IB, and eSignal for charts (I went from tape reading on Level II, to a full chart trader, like yourself).

How do options look like on Lightspeed? Are you entering orders with keyboard commands? Would you kindly post a screenshot of Lightspeed with Options? I might be returning...

 

[Dustin]

Dustin,

I started day-trading NASDAQ stocks on First Level, which would become Lightspeed, for the first decade of my trading life. The other crew at Heartland, was using the Watcher. I have been focused on futures during my second decade, and use IB, and eSignal for charts (I went from tape reading on Level II, to a full chart trader, like yourself).

How do options look like on Lightspeed? Are you entering orders with keyboard commands? Would you kindly post a screenshot of Lightspeed with Options? I might be retuning...

I enter with the screen below just using mouse. FWIW I'm a big fan of LS, they are rock solid through market stress and didn't do any of the GME b.s. trading restricions in Jan.

You can check it out for yourself here: https://www.lightspeed.com/trading-platforms/lightspeed-trader/platform-features/

This is from that page:

 

[ChipShotTrader]

I enter with the screen below just using mouse. FWIW I'm a big fan of LS, they are rock solid through market stress and didn't do any of the GME b.s. trading restricions in Jan.

You can check it out for yourself here: https://www.lightspeed.com/trading-platforms/lightspeed-trader/platform-features/

This is from that page:
View attachment 262408

OH, Dustin,

That IS a beautiful sight!!!

I could have gone to their website, but your feedback weighs a LOT more than any YouTube video, website, etc.

I will be reviewing this. Thanks dude...

I respect a man who thinks $50K is a shitty day. By the way, a $100K day is called a "HONEY"

@Robert Morse would be proud...

 

[Robert Morse]

Like a proud papa.

@Robert Morse would be proud...[/QUOTE]

 

[Tradex]

I respect a man who thinks $50K is a shitty day. By the way, a $100K day is called a "HONEY"

Making 50k or 100K in one day is a meaningless metric.

The only things that count are the annual ROI and the maximum drawdown.

The rest is just bullshit.

 

[ChipShotTrader]

Making 50k or 100K in one day is a meaningless metric.

The only things that count are the annual ROI and the maximum drawdown.

The rest is just bullshit.

Well, Dustin did make that money (using Lightspeed Options).

"Dear Lord, how can you possibly watch and enjoy that crap!?!?
It's full of violence for violence's sake, right from the start!!!
And this is supposed to be entertaining??
Come on man, boycott that kind of movies, they will literally degrade your soul."

"(And that also goes for all the horror/satanic movies that are popping up more and more these days.)"

You like Tarantino? I can put you in touch. Super Violent movies, starting with "Pulp Fiction"...

I should have skipped all of that violent stuff, full of violence, for violence's sake!!!

Can you recommend the kind of movies I should be watching? I am excited for a New List!!!

PS. "Making 50k or 100K in one day is a meaningless metric." FYI: It's actually a VERY BIG DEAL...