"BANG" Option Trading...taking $1,000.00 to $100,000

Quote from sakhter:

It was worthless when he mentioned the $1,000 SIMULATION deposit..
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I just received my property tax bill in the mail- I am going to pay it with the profits from my "sim" account!:p

I agree, real money trades a LOT differently than sim money.
 
For myself, moving away from hard directional trading, but not going to neutral, I have been doing credit spreads, so this is a little bang trade.

For my entry to the $1000 challenge consider, SPY @ $106.31, my outlook is bullish with caution.

a SPY OCT 100/102 BULL PUT SPREAD @$0.34 vs $1.66

my trade plan is to sell 3 for $102 vs $498

so I have about $500 in reserve for any possible adjustments

if SPY drops toward my sold strike (102) I may sell additonal spreads, or buy back the spread depending on how I view the move.

trade has 4 wks of time
 
Quote from traderlux:

For myself, moving away from hard directional trading, but not going to neutral, I have been doing credit spreads, so this is a little bang trade.

For my entry to the $1000 challenge consider, SPY @ $106.31, my outlook is bullish with caution.

a SPY OCT 100/102 BULL PUT SPREAD @$0.34 vs $1.66

my trade plan is to sell 3 for $102 vs $498

so I have about $500 in reserve for any possible adjustments

if SPY drops toward my sold strike (102) I may sell additonal spreads, or buy back the spread depending on how I view the move.

trade has 4 wks of time
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You have more guts than I do:)

With the end of the quarter coming up & earnings reports starting to roll in? It is certainly far enough out of the money to be considered "safe" & any other time I would be comfortable with it.

I'm sure it will work out though, I'm just a big pussy right now. Things seem a bit irrational for me. :eek:
 
wartrace,
thanks for the reply, after I sent the post I thought I should have added that this is a more aggressive trade than i would normally do.
I did one similar to this for SEP (97/99) and it worked out as a total win, even though it did move against me at one point.
So I might be suffering from winners syndrome.

I do agree about E/R being a concern.
 
Quote from traderlux:

wartrace,
thanks for the reply, after I sent the post I thought I should have added that this is a more aggressive trade than i would normally do.
I did one similar to this for SEP (97/99) and it worked out as a total win, even though it did move against me at one point.
So I might be suffering from winners syndrome.

I do agree about E/R being a concern.
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It's probably a safe trade, I'm just a little on edge. I am not convinced this rally won't have a small correction sooner or later.

I try to stick with index options myself. I've been burned before by the odd analyst upgrade individual stock options sometimes experience. :(
 
Quote from increasenow:

do you mainly trade certain options?...AAPL etc?great stuff!!!
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I traded whatever was moving substantially premarket. Definitely didn't focus on one issue. I focused on the pattern.

Wilt
 
Quote from ForexForex:

Here is one of my trades I have planned this Monday September 21, 2009 for the $1000 to $100,000 challenge.

Buy RIMM Oct 2009 85.00 call ..... I will post # of contracts and exact strike depending on Mondays price, but it will be 1 strike OTM and 2 contracts for about $1000.00. RIMM earnings Sept. 24 and RIMM has been trading in a range for a few months

rimm
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I have been eliminated from the $1,000 to $100,000 challenge. :(



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Quote from ForexForex:

I have been eliminated from the $1,000 to $100,000 challenge. :(



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Did you already sell the options? How about selling the next strike lower & pocketing the credit? (Bear call spread) I haven't looked at the situation closely (prices & charts of rimm) but it's a thought. You might be able to salvage some of the loss?:)

Sorry it didn't work for ya, I know the feeling.:eek:
 
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