Your stop just got hit today so the question is now moot.
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Best options strategy for a 1 or 2 dollar gain within 5 days ?
- Thread starter Range Rover
- Start date
Your stop just got hit today so the question is now moot.
Quote from Range Rover:
Lets say I expect AMZN to rise 2 dollars from its current price within the next five days. I will take profits if it gos up 2 dollars within 5 days.I will exit trade if it drops 2 dollars within 5 days . I will exit at the current price at the end of 5 days if it hasn't gone up or down 2 dollars within the 5 days.
I'm am using options to increase buying power
Your profits - if any - would be very slim, not worth the risk. You need more than a 2 dollar move. Check out the QQQQ options, they are cheap and pack a lot of punch on small QQQQ moves.
AMZN was just an example, not an actual pick
My risk and target on amzn would have been 2.36 today and could be long or short
Lets say my pick today was sell at the open with a 2.36 target,what would have been the best option play ?
Thanks to all for the advice
My risk and target on amzn would have been 2.36 today and could be long or short
Lets say my pick today was sell at the open with a 2.36 target,what would have been the best option play ?
Thanks to all for the advice
Need more info. In your "examples" you must provided accurate and complete data.
What is "long or short"? Are you shorting AMZN by buying puts? Or do you mean buying and/or selling options?Quote from Range Rover:
My risk and target on amzn would have been 2.36 today and could be long or short
Again what are you selling? Calls, Puts?Quote from Range Rover:
Lets say my pick today was sell at the open with a 2.36 target,what would have been the best option play ?
Quote from ForexForex:
Need more info. In your "examples" you must provided accurate and complete data.
What is "long or short"? Are you shorting AMZN by buying puts? Or do you mean buying and/or selling options?
Again what are you selling? Calls, Puts?
When I say short I mean sell the underlying.Rather then selling the underlying I would like to increase leverage with options
Learn how to crawl before you walk.
Stick to equities for now.
Stick to equities for now.
Quote from Range Rover:
When I say short I mean sell the underlying.Rather then selling the underlying I would like to increase leverage with options
Your choices are:
Buy Puts
Sell Calls
Sell Puts
Call Credit Spreads
Put Credit Spreads
Put Debt Spreads
All the above may produce a profit - or loss - depending on the extent of AMZN's decline during your time frame and the strike prices you choose.
The first step is to learn about implied volatility. Sign up at ivolatility.com to chart the IV and see how it moves. Say you are bullish on a stock, you should also form an opinion about the IV:
If IV is low, traders aren't expecting much movement. If it explodes upwards, the IV goes up and you will make the most $$$ if you were long volatility by buying calls. The effect is amplified for OTM calls.
If IV is high, traders are expecting some big movement, you might consider selling puts. You will slowly make $$$ if the stock goes up, and may also profit or breakeven the stock is flat or down, due to being short IV and profits from time decay.
There are a lot of other things to consider, but hopefully this will help you get started. The second step is to learn about the greeks.
If IV is low, traders aren't expecting much movement. If it explodes upwards, the IV goes up and you will make the most $$$ if you were long volatility by buying calls. The effect is amplified for OTM calls.
If IV is high, traders are expecting some big movement, you might consider selling puts. You will slowly make $$$ if the stock goes up, and may also profit or breakeven the stock is flat or down, due to being short IV and profits from time decay.
There are a lot of other things to consider, but hopefully this will help you get started. The second step is to learn about the greeks.
surprised there is no str forward answer, so i will help, but in return i want u to pm me your picks so i can see how they do.... agreed?
the way to play it is buy deep in the money puts or calls. in the closest month. you will see the premium is the lowest there. probably only a nickle. the delta is close to 100, but if the trade goes against u, u dont lose 1 : 1 u lose less, and if it goes for you, u will gain close to 1:1.
if you want me to explain why the other strategies mentioned in this thread are wrong, pm me, and i will. but the pm need to have a call or two. i wan to see what you are doing and if it makes sense. thanks, enjoy
the way to play it is buy deep in the money puts or calls. in the closest month. you will see the premium is the lowest there. probably only a nickle. the delta is close to 100, but if the trade goes against u, u dont lose 1 : 1 u lose less, and if it goes for you, u will gain close to 1:1.
if you want me to explain why the other strategies mentioned in this thread are wrong, pm me, and i will. but the pm need to have a call or two. i wan to see what you are doing and if it makes sense. thanks, enjoy