Nope, it was opened as cash account only.....and it helps if you have another account attached to your trading account too...I'm talking about 2 separate accounts at the same brokerage firm. They allow it. Plus if you elect yourself as a cash only, then they don't care about it...funny is it is only options and in options you are always 100% invested with your funds and none from the broker, at least with the option trades I've been trading. I know there are probably other types of option strategies like naked calls/puts that puts you at more risk, but I'm doing none of that.
My option trades
- Thread starter ryanpatrick
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Nope, it was opened as cash account only.....and it helps if you have another account attached to your trading account too...I'm talking about 2 separate accounts at the same brokerage firm. They allow it. Plus if you elect yourself as a cash only, then they don't care about it...funny is it is only options and in options you are always 100% invested with your funds and none from the broker, at least with the option trades I've been trading. I know there are probably other types of option strategies like naked calls/puts that puts you at more risk, but I'm doing none of that.
My recommendation is $3000+ on AAPL puts, 3 strikes OTM. Earnings is on January 24, so a good time to buy is Jan 24 3:45pm EST. You should reach your target of $18,000 on this one trade. Good luck.
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I don't know, AAPL always has a bad habit of dropping on this report. I'd say 3 of past 4 years, the January report pushed AAPL lower only to recover by March. Could happen again in my opinion, seems to be set up for such a move as AAPL tests new highs on lower volume, then bangs everyone out before recovery.
I'm sticking to VMW, of course got a lower price here, buy 2 spreads 87.5 and 95 call set up as debit spread with my cost of $2.70. Cost me -565.90. Feb calls of course.
Not sure about getting into anything else today....market is jittery even though it wants to go up.
I'm sticking to VMW, of course got a lower price here, buy 2 spreads 87.5 and 95 call set up as debit spread with my cost of $2.70. Cost me -565.90. Feb calls of course.
Not sure about getting into anything else today....market is jittery even though it wants to go up.
Buy $87.50 Call (2 contracts)
Sell $95.00 Call (2 contracts)
http://finance.yahoo.com/q/op?s=VMW+Options
$95.00+
http://finance.yahoo.com/q?s=VMW
Just getting back to you now, but technicals point higher, I'm looking at $92-$95 at most and probably won't go much higher than $95. Also, VMW for me is considered a cloud play, same as FFIV NTAP RAX and CRM. When one of these early players post solid results, I usually expect the rest to follow....They all play in different parts of the cloud, but I've grouped them into one for the past 2 years and it has worked. I already had a good trade from FFIV last week, which gave me even more confidence on VMW. On the chart, VMW just recently tested support at $77, I'd expect at least a run up to resistance around $95 if not $105 before falling back down if there are no new institutional buyers.
I believe I did post 87.5/95 call. My risk was $270 per contract, with max return at $750. Net profit is estimated to be about $480. Initial risk ratio is 1.77 not too bad. I plan on legging out of position tomorrow. Maybe I'll hold onto the long 87.5 calls for a longer period, but not sure how much longer because this market has done nothing but gone up for the past 2 weeks. Has anyone noticed a -100 drop for the dow jones at all? Just wicked here. I should have also bought the second trade that I reviewed....was WDC calls....just didn't want to risk too much early here.
I'll probably go with spreads/strangle (I believe that's what the strategy is called when taking on both direction with out of money options) on NFLX tomorrow. I think NFLX will move +15% but I don't care about direction, just want to see the move.