My option trades

atticus · Mar 19, 2012

Quote from Nine_Ender:

This post is highly misleading, suggesting you don't trade options very often. There is no free lunch.

lol you're talking smack to a guy who traded options professionally on the p-coast for years and with a net-worth in the 9-figures. Lucky for you that your disability is binary in nature.

A sim trader giving shit to a guy with more experience than you've had years on this planet. wtf.

ForexForex · Mar 19, 2012

Quote from falconview:
So what causes the PUTS to contract so much, as APPL goes UP and gains a bit on CALLS?

Options 101: Subject IV

Hence my reasoning behind buying QQQ options instead of AAPL options. I quick look at both the QQQ and AAPL March23 weekly options chains - as of now - will show the QQQ puts and calls out-preformed the AAPL options. The percentage gains are higher on the QQQ ATM calls, the percentage loses are lower on the QQQ ATM puts.

I like to think outside the box.

ForexForex · Mar 19, 2012

Quote from babutime:

So much for being bearish on aapl...

Calling the top or bottom is hard. I would think it has the lowest percentage of success of any other trading strategy.

Don Bright · Mar 19, 2012

Quote from atticus:

lol you're talking smack to a guy who traded options professionally on the p-coast for years and with a net-worth in the 9-figures. Lucky for you that your disability is binary in nature.

A sim trader giving shit to a guy with more experience than you've had years on this planet. wtf.

Thanks for that, I try to stay humble, but I do think I understand options pretty well....but, as always, you're the man, Mr. Atticus.

Don

kinggyppo · Mar 19, 2012

Quote from falconview:

For better or worse, til death do us part. Or the account balance.

Bought 3 QQQ this morning at 64 June QQQ CALLS $4.35

CASH TRADE
______________________________

I also played with a paper trade strangle in Apple. OTM calls and puts. That didnÂ´t work out at all.

While the AAPLE calls gained $4, the strangle PUTS shranks $8 or twice as much.

Lesson there, is strangles donÂ´t seem to be any good? Trade only direct in the direction.
_______________________________

Falcon you have a habit of generalizing based on one or two trades, in logic this is called a "hasty generalization". I think Don's point is simple, sell theta. I know what you are saying Don, not sure if telling Falcon about conversions/reversals is gonna help, risk you should just trade his account for him....

http://www.investopedia.com/articles/optioninvestor/05/011905.asp#axzz1pavnbD4m

Nine_Ender · Mar 19, 2012

Quote from Don Bright:

Thanks for that, I try to stay humble, but I do think I understand options pretty well....but, as always, you're the man, Mr. Atticus.

Don

Don, my point is you have oversimplified the options market in your recent posts. No disrespect is intended, but plenty to go around on this site with posters like Atticus who seems to lack a moral compass.

atticus · Mar 19, 2012

Quote from Nine_Ender:

Don, my point is you have oversimplified the options market in your recent posts. No disrespect is intended, but plenty to go around on this site with posters like Atticus who seems to lack a moral compass.

I have GPS, twit.

jeffalvinson · Mar 19, 2012

Quote from falconview:

Jeff

YOu have mentioned CREE before I believe. Out of curiousity I just took a look at it.

What was your trade yesterday in buying CALLS?

Also what time frame are you dealing with and the month.

See if I can get a picture in my mind, of what you did?

falconview,

There wasn't any intelligence used in my CREE trade and it would be a poor example to follow.

The trade started off as a straight put buy on 03-14-2012, here was the post quoted from page 127 of this thread:

[03-14-12 08:07 AM
Today bought CREE April 29 puts at 2.00.
"Chart sucks, earnings usually bad and the stock didn't participate in yesterday's hugh rally."]

Later that same day on 03-14-2012 I didn't like the way the stock re-acted as the day progressed so I bought calls and made a strangle out of it. Here is the quote from page 131 of this thread when I mentioned to Ryan that I had turned the trade into a strangle near the end of the prior day:

[03-15-12 08:18 AM
Ryan,
Speaking of CREE, later in the day yesterday I added CREE April 30 calls at 1.50 to make a strangle out of my CREE 29 puts at 2.00.]

So as you can see, it was more of a "panic strangle,"
"Crap the directional trade isn't looking good, I better buy the other direction too!"
I actually expected just to break-even on the debit, but today was a pleasant surprise.

Its the first one I've done in 12 years and probably the last. I'll
just stick to my SPY mechanical trading system thank you.

Jeff

dreamliner · Mar 19, 2012

Jeff, do you have a thread sharing your SPY mechanical system? If not, is it something you can share? I'd love to see it if able. If not I understand. Thank you.

Quote from jeffalvinson:

falconview,

There wasn't any intelligence used in my CREE trade and it would be a poor example to follow.

The trade started off as a straight put buy on 03-14-2012, here was the post quoted from page 127 of this thread:

[03-14-12 08:07 AM
Today bought CREE April 29 puts at 2.00.
"Chart sucks, earnings usually bad and the stock didn't participate in yesterday's hugh rally."]

Later that same day on 03-14-2012 I didn't like the way the stock re-acted as the day progressed so I bought calls and made a strangle out of it. Here is the quote from page 131 of this thread when I mentioned to Ryan that I had turned the trade into a strangle near the end of the prior day:

[03-15-12 08:18 AM
Ryan,
Speaking of CREE, later in the day yesterday I added CREE April 30 calls at 1.50 to make a strangle out of my CREE 29 puts at 2.00.]

So as you can see, it was more of a "panic strangle,"
"Crap the directional trade isn't looking good, I better buy the other direction too!"
I actually expected just to break-even on the debit, but today was a pleasant surprise.

Its the first one I've done in 12 years and probably the last. I'll
just stick to my SPY mechanical trading system thank you.

Jeff

falconview · Mar 19, 2012

Ahhhh well!

Nine figures? I canÂ´t count that high ATTICUS. IÂ´m only worth a half a million. But then I never did much in the wealth cash gathering line. I was sailing warm, emerald and azure seas, spearfishing, gone through 3 hurricanes at sea in small sailboats, entertaining willing dusky maidens on board, or under the coconut trees. THAT was my idea of a life well lived.

Ayyy yiii yii! Don has tossed another mystery into the pot, I now have to look up and read about. three way conversions, fair value.
Seems like it never ends, but then that is the entertainment in all this stuff anyway.

Considering how dumb I am, it is amazing how smart, RICH guys like ATTICUS and DON take the time to help this dude. Much appreciated indeed. With friends like that, who needs money?

There was a movie with some star named Douglas. He and his wife were down here a month ago. Playing a trader in the movie. He kept telling his son-in-law. ItÂ´s not the money dude, itÂ´s the game. Money is just how you keep score.

My score is not so good. Actually IÂ´m slightly ahead. Been going up and down a couple of thousand. Make it and give it back. Got to break that giving back habit.

I see Ryan went quiet??