Im shorting Goog on Monday

[lachie74]

How are people playing the large gap down today?

I'm looking to go long at open for a quick pop up for a couple of bucks, history is on my side.

 

[krazykarl]

Quote from lachie74:

How are people playing the large gap down today?

I'm looking to go long at open for a quick pop up for a couple of bucks, history is on my side.

History means little.

People are selling this stock. Don't be foolish.


If you must go long, I'm happy to sell to you.



Regards,

 

[Thurgood]

Quote from robbie380:

nice. i'm glad to see someone step up and state a position. nice trade so far.

how are you planning the exit?

I want to see the action at the open and I want to wait for the jobs reports. However, if the contract opens at > $13 (traded higher than that yesterday) I'll probably sell 5 contracts and keep 5 contracts.

I had 8k shares of yahoo @18.90 and sold them yesterday... SON OF A ....

 

[krazykarl]

Quote from Thurgood:


I had 8k shares of yahoo @18.90 and sold them yesterday... SON OF A ....

Call your broker's trade desk and get the trade busted... (no joke)

Depending on your broker and how your relationship with them is, it's doable before the market opens.

 

[Thurgood]

Quote from krazykarl:

Call your broker's trade desk and get the trade busted... (no joke)

Depending on your broker and how your relationship with them is, it's doable before the market opens.

why on earth would they allow someone to bust a trade the next day? What reason would I possibly give? I use Fidelity (yes I know, moving to IB next week)

 

[krazykarl]

Quote from Thurgood:

why on earth would they allow someone to bust a trade the next day? What reason would I possibly give? I use Fidelity (yes I know, moving to IB next week)

Guess you can't then.


I've done it a handful of times with my scottrade account, usually to the effect of limit orders that triggered but "should not have". The quicker you call them the more likely it is to happen.



Regards,

 

[scriabinop23]

Quote from krazykarl:

History means little.

People are selling this stock. Don't be foolish.


If you must go long, I'm happy to sell to you.



Regards,

I definitely believe you have a lot of $$$ on this trade and are praying it works for you.. Save yourself your money and reduce your size. I'm long at an avg price of 533 and resting just fine.

 

[krazykarl]

Quote from scriabinop23:

I definitely believe you have a lot of $$$ on this trade and are praying it works for you.. Save yourself your money and reduce your size. I'm long at an avg price of 533 and resting just fine.

I'm not praying - prayer has no place in trading.

I spent 18 months learning, testing, and developing carious trading algorithms and from day one they all started with risk management. If the system's see a tape they don't like, they shutdown for the session. Maybe that's playing it _too_ safe, and someday I hope to have code that allows the system's to catch a moving train, but right now I'm pleased with them getting on at the station.(read: opening bell.)



Kind Regards,

 

[scriabinop23]

Quote from krazykarl:

I'm not praying - prayer has no place in trading.

I spent 18 months learning, testing, and developing carious trading algorithms and from day one they all started with risk management. If the system's see a tape they don't like, they shutdown for the session. Maybe that's playing it _too_ safe, and someday I hope to have code that allows the system's to catch a moving train, but right now I'm pleased with them getting on at the station.(read: opening bell.)



Kind Regards,

nice.. what is your system designed around? (more simplisticly, trend follow? mean reversion? etc) What application are you using?

 

[krazykarl]

Quote from scriabinop23:

nice.. what is your system designed around? (more simplisticly, trend follow? mean reversion? etc) What application are you using?

Simply put, it correlates price-action/volume of the equity with the action in the option chain for a specific time horizon. It attempts to identify what I call 'inflection points' in the chains and uses mutiple algorithms to confirm and exploit the action. The core is a general bias in the data it analyzes: I give it 2 inputs: the issue(GOOG in this case) and a bias(down in this case) and it does the rest. You read that right: it's not totally automated: just the trade executions are. The human, me, still tells it which direction to look.

It's 100% Java - my favorite language.



Kind Regards,


edit: a little more info. the distribution is 50% near-month, 20% point1, 20% point2 and 10% point3. The system will roll the contracts every month if the near-month gets too close to expiration and is otm or close the trade if it's itm and roll to the next month.