best options strat for newbee starting with 3k

traderlux · Mar 24, 2013

fri, mar 29 is a holiday, market closed, could be a slow week, might want to watch any profit closely and be ready to take it.

Quote from trader198:

buy OTM: the best strategy.

aapl is the best vehicle for options.

next is spy.

aapl is trending up, I loaded 460/465 calls for this week. already doubled, I just hold it toward this friday. it will be above 480+ end of this week.

you should not consider day trade since you are not allowed.

you need think and consider trades in long-term charts, that is not intra-day, in daily chart.

3k is big money in option

regardspratik · Mar 25, 2013

Thanks guys for all of the great remarks.

@ putmaster. I am going to print your 1st commnet to remind me of it

thnx a bunch.

I dont think optionshouse is giving us the mini-options. I really wanted to do tht for appl. I wish i can get in it. I bought few stocks already, but i know options are the way to go FOR SURE.

regardspratik · Mar 25, 2013

do you guys have any stocks and strat you guys use often and makes may be 5-8% per position?

thanks

Windlesham1 · Mar 25, 2013

I only trade the index-european style,and sell spreads and ratio spreads,Xmas trees too

probe1957 · Mar 25, 2013

Quote from regardspratik:

do you guys have any stocks and strat you guys use often and makes may be 5-8% per position?

You need to talk to a member here who goes by the handle "fantome" (among others). He makes thousands of percent on every trade he makes and has absolutely never made a bad call.

KINGOFSHORTS · Mar 25, 2013

Quote from cdcaveman:

how are you selling puts in aapl with 3k?

The Mini options?

regardspratik · Mar 25, 2013

Quote from KINGOFSHORTS:

The Mini options?

no, tht is a virtual/practice account.

cdcaveman · Mar 25, 2013

Quote from Windlesham1:

I only trade the index-european style,and sell spreads and ratio spreads,Xmas trees too

xmas trees?

justrading · Mar 25, 2013

Quote from cdcaveman:

xmas trees?

http://www.optionsplaybook.com/option-strategies/christmas-tree-butterfly-call/

justrading · Mar 25, 2013

Quote from regardspratik:

do you guys have any stocks and strat you guys use often and makes may be 5-8% per position?

thanks

Making or losing 30% in options (trading spreads) is nothing. The trick is to ensure that the 20% or 30% loss that you are willing to accept represents a small fraction of your account, and the winners are larger than the losers. I typically look at a loss representing 1% or less, but with 3K you might need to accept a higher percentage.

I suggest you look at trading symbols like QQQ or SPY where long butterfly spreads can be established with $90 - $150 debit. By extension, that would mean stocks that trade at values in the range of QQQ and SPY, though I suggest you start with indices.