On Gfinance, all jan option volume today is in one strike and in put options only. Why?
My OPTION TRADES..... part 2
- Thread starter Put_Master
- Start date
On Gfinance, all jan option volume today is in one strike and in put options only. Why?
My guess is because the strikes are in 2.5 increments, the others don't pay enough credit to be worth the r/r of investment.
Or am I missing something?
Correct. I was so impressed with the chart that I had not noticed.... plus I had not looked at it yet, other than the chart.
And yet, I knew what USO was, but it didn't click.
PM,
I am working my way through the thread, so apologies if you have already answered the question...
Do you have a minimum holding period before closing a profitable positon? If you have a big move in your favour a day after entry, would you exit the following day?
I am working my way through the thread, so apologies if you have already answered the question...
Do you have a minimum holding period before closing a profitable positon? If you have a big move in your favour a day after entry, would you exit the following day?
PM,
To me, it seems like your doing the same thing with stock options
that Karen Bruton (i..e..Karen The Super Trader) is doing with
Index options.
She initially sells naked puts....if the position becomes troublesome...
the economics of the overall trade is balanced out selling naked calls (or she goes further out with more naked puts, or both).
Does that seem similar?
Jeff
P.M. Are you actually Karen trading your personal account with stock options? "Ah Ha!" I knew that I would figure out why your so damn good!" (just kidding)
To me, it seems like your doing the same thing with stock options
that Karen Bruton (i..e..Karen The Super Trader) is doing with
Index options.
She initially sells naked puts....if the position becomes troublesome...
the economics of the overall trade is balanced out selling naked calls (or she goes further out with more naked puts, or both).
Does that seem similar?
Jeff
P.M. Are you actually Karen trading your personal account with stock options? "Ah Ha!" I knew that I would figure out why your so damn good!" (just kidding)
Quote from jeffalvinson:
PM,
<<< To me, it seems like your doing the same thing with stock options
that Karen Bruton (i..e..Karen The Super Trader) is doing with
Index options.
She initially sells naked puts....if the position becomes troublesome...
the economics of the overall trade is balanced out selling naked calls (or she goes further out with more naked puts, or both). >>>
I rarely sell naked calls on deteriorating positions I have naked puts on, like my $41 NTES for Dec,... in which I now have a $37 naked call on for Jan, which is expected to become a "break even" Jan $37 covered call next week.
I've probably only done risky trades like that 3 - 5 times over the past 30 years.
<<< P.M. Are you actually Karen trading your personal account with stock options? "Ah Ha!" I knew that I would figure out why your so damn good!" (just kidding) >>>
So damn good?
On a scale of 1 - 10, I'm barely even a 9.7
Hard to generalize.
I generally want to keep more than 70% of the potential profit, before I'll consider closing it.
Sometimes more than 80%.
Depends on how much time remaining on the contract, whether earnings are pending before the contract expires, how deep OTM my cushion is, whether I'm on excessive leverage or not, and so on...
For example, If I am really deep otm and not on much margin leverage, and the contract has a 2 more weeks remaining,and I really liked the price and tech support I will probably NOT close it down.
But if I was on quite a bit of leverage, and saw another trade I liked, I probably would close it down, to avoid being on even more excessive leverage.
Thus I have no particular criteria I use. I evaluate on a case by case basis.
<<< I am working my way through the thread >>>
You will be reading a lot of the same stuff over and over again.
Quote from Put_Master:
So damn good?
On a scale of 1 - 10, I'm barely even a 9.7
"Now come on now PM, your at least a 9.8!"
Quote from jeffalvinson:
"Now come on now PM, your at least a 9.8!" [/QUOTE
The only legit test of a traders skill is, how his bullish trades do when the market is no longer in bullish mode.
Hence the reason I'm willing to buy 95% of my trades, if the market takes them down. My plan "B" would be to collect dividends and sell covered calls.
Investors can NOT consider doing that, if they invest at overvalued prices,... in financially unstable companies,.... use excessive leverage, ect.