Any advice for my poorly designed options trading strategy

uhmmmm and I would have to agree with everyone else and stick to shorter time frame stuff. I used to be a CC person and sometimes even sold 6-8months out...tsk tsk. Have mended my ways:) but I never did leaps....

edit...hey who can complain..your p&l YTD is positive. Let he who has not sinned cast the first stone.
 
Quote from RichardRimes:

one thing you did really right was show us your screen...how did you do that and block out net liquidating value? I'd love to show stuff but haven't a clue how to actually do it. I use TOS as well.:)
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just press the Control key and the print screen key at the same time. The screen image will be captured to the clipboard.

control+alt+prtscr will capture the active window.

you can then paste the image to your paint program for editing.
 
Quote from CommercEngineer:

Here's a question, if I want the ability to take advantage of short term price spikes, but believe in the business behind a stock having good fundamentals to drive a higher stock price over time, what is the best way for me to do that?

Should I just put on separate trades or is there a combo that would work for me?
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Options may not be right for you under the first analysis. If you believe the fundamentals are good and want to take advantage of price spikes, then just buy the stock.

The catch with options is that you have to be right about both direction AND time (and to some extent, Implied Volatility). Your analysis should be something like:

"I think the stock will close over 80 at October expiration", (Oct vertical)
"I think earnings next month will be good, but you never know how the market will respond, so I want limited risk", (Nov calls or vertical)
"I think earnings next month will be a surprise, but I don't know if it will be good or bad, but it will be a big move" (Nov straddle, strangle)
"I think the stock is going to rally to resistance at 85 and consolidate until October expiration", (Oct butterfly, calendar)
"I think this stock isn't going anywhere for the next 15 days", (Oct butterfly, short straddle, short strangle)
"I think the IV for the front month is way too high" (Oct/Nov calendar)

Options require at least 3 opinions (of varying importance): direction, time, volatility.

I hope that helps!
 
Quote from CommercEngineer:

I think I have good fundamental ideas, but I'm not making a killing.
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you might have learned the components of an option trade, but I don't think you have the fundamental ideas yet. I am saying this not as a put down. You can only learn and excel from here.

Go pick up McMillan. That's the basics.
When you are done, move on to Natenberg.
If you are still with it, then try the coach's handbook.
 
Quote from Tums:

just press the Control key and the print screen key at the same time. The screen image will be captured to the clipboard.

control+alt+prtscr will capture the active window.

you can then paste the image to your paint program for editing. [/QUOTE

thanks..I'll give it a try.
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Quote from RichardRimes:

I can't find my clipboard :(
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you don't need to see the clipboard.

go open the Paint program. (or photo editor, or any drawing program.)
select "Edit", paste.
the captured image will be retrieved from the clipboard and pasted onto the paint program.
 
ok...I got it there now how do I black out net liquidating value? thanks again

edit...ok I actually kinda figured that out now...for all those playing along...how do I transfer say to ..ET? I tried the "cut" then "paste" and it doesn't paste.
 
This will NOT be a grand revelation to any of you but it was to me. :D For a couple of years, I've been trading and have done pretty good. But there are times when a trade will move against me, closer to my short strikes and I"ll just sit there hoping it will come back down. And I guess you know what happens. Then last week, after two years, I had an epiphany. I simply rolled my shorts up to another strike and one month further out. I thought, "there's no law that says I can't wait another 30days to take a profit or to recoup my capital. Why sit here and keep losing money" Now, I'm feeling better..I'm not losing money. I know it's simple but for me, I was in the mode of "having" to make a profit this trade no matter what, and then losing all of my capital. I'm learning more and more..the key is to stay in the game. By the way, thanks for all the help you guys give!!!
 
Quote from RichardRimes:

ok...I got it there now how do I black out net liquidating value? thanks again

edit...ok I actually kinda figured that out now...for all those playing along...how do I transfer say to ..ET? I tried the "cut" then "paste" and it doesn't paste.
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You have to save the file in jpg format and then upload it on a server or else attach it as a file to your reply.

For a picture storage server try this one...

http://imageshack.us/

then paste the picture's direct link into your reply.
 
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