Conservative Options Trades
- Thread starter danshirley
- Start date
OK:
I just tried to get filled at .25..... and it showed the NBBO bid at (.25) i.e. negative ...while Optionsxpress is showing it at .25.... positive.
How you can have a negative bid I don't know. I guess it's pay me for that spread... like a negative interest rate.
I'll forget that trade for now.
Update:
This is all probably related to the complex market OptionsXpress uses for spreads. I've read it several times but don't understand what they are talking about.
They are proud of the fact that they don't just take bid/ask but use a seperate spread market to get 'price improvements'.
I just tried to get filled at .25..... and it showed the NBBO bid at (.25) i.e. negative ...while Optionsxpress is showing it at .25.... positive.
How you can have a negative bid I don't know. I guess it's pay me for that spread... like a negative interest rate.
I'll forget that trade for now.
Update:
This is all probably related to the complex market OptionsXpress uses for spreads. I've read it several times but don't understand what they are talking about.
They are proud of the fact that they don't just take bid/ask but use a seperate spread market to get 'price improvements'.
cereal:
Sorry... scratch that trade.
Sorry... scratch that trade.
UGA was almost a whole point below it's "multi year high", the last day or two.
Glad to see you finally getting more........ "conservative"...... as you wait for those fantastic investing opportunity pull backs.
Glad to see you finally getting more........ "conservative"...... as you wait for those fantastic investing opportunity pull backs.
would it make any sense to trade staddles with stocks that are parabolic or setting all time new highs... you know usually this is when the instriment either drops like a rock.. or gets tweeked out going up and then drops like a rock... you know buy a straddle .. leg out if you have enough profit in a blow off top kinda thing... IE the call side is in enough profit to take that side of the spread off for a total profit.. yet leave the put open for a "drop like a rock" senerio... i don't know... i mean you might think options would be cheap on the stock rise.. but who knows as things increasingly you might end up over paying for to be long the vol
All I know is I'm mocking his thread title of "Conservative Option Trades' as i do not see his trades as conservative.
All he is doing is looking for stocks that have already had a fantastic rise, and then investing in them otm, AFTER they have already risen.
He then throws in a few news stories, a page of "key statistics" or some other page,... with no analysis attached, adds an attached picture of a building, and he is done.
He tries to make it look like he has done some homework, but really all he does is look for stocks that have already had significant rises, and then hopes to jump on the bandwagon.
And that would be ok, if that's his prefered strategy, as we all have our own strategies, trading preferences, criiteria, ect....
Except for the fact that he calls his thread CONSERVATIVE option trades.
It's a misleading title, and I can only hope some novice investor doesn't get sucked into jumping on the same bandwagon, because of that misleading title.
His thread should be called.... WAIT UNTIL A STOCK IS NEAR IT'S MULTI YEAR HIGH BEFORE INVESTING.
At least then I would respect his honesty.
All he is doing is looking for stocks that have already had a fantastic rise, and then investing in them otm, AFTER they have already risen.
He then throws in a few news stories, a page of "key statistics" or some other page,... with no analysis attached, adds an attached picture of a building, and he is done.
He tries to make it look like he has done some homework, but really all he does is look for stocks that have already had significant rises, and then hopes to jump on the bandwagon.
And that would be ok, if that's his prefered strategy, as we all have our own strategies, trading preferences, criiteria, ect....
Except for the fact that he calls his thread CONSERVATIVE option trades.
It's a misleading title, and I can only hope some novice investor doesn't get sucked into jumping on the same bandwagon, because of that misleading title.
His thread should be called.... WAIT UNTIL A STOCK IS NEAR IT'S MULTI YEAR HIGH BEFORE INVESTING.
At least then I would respect his honesty.
i mean he could be like the guy that got some disease and is so angry at the world he is trying to spread it around with his "totally awesome" ideas on stocks.. punching out stock purchase ideas on the daily.. if your gonna buy a stock that has went on a run up.. is there any statistical correlation on the trend.. or is it completely random.. is it starting to relaize some future fundamentals .. or is he buying yesterdays fundamentals.. that are well discounted.
Yield = 30/170 = 17.6% in 73 days or 88.2% annualized
i never really thought on a 2 dollar spread to caculate return this way.. i mean sure if you get blown out you still keep the credit.. so you can't ever loose the credit but still... i always did the credit amount against the difference between the strikes for my percentage return.. cause if you get blown out your totally FU00KED..
i never really thought on a 2 dollar spread to caculate return this way.. i mean sure if you get blown out you still keep the credit.. so you can't ever loose the credit but still... i always did the credit amount against the difference between the strikes for my percentage return.. cause if you get blown out your totally FU00KED..
Is that not what he does? When I look at the formula it appears to output the same value you would get.