My option trades

Well I did find a sort of good debit spread calculator.

A 2 % move in the underlying index, or stock, would not quite make maximum profit. Presuming your directional bet was good.

Something to think about. Guess you would need a 3% move?
===============================

My conclusion would be; it probably would be better to buy an OTM debit spread, rather than do a straight buy of options betting on direction. The gain afterward would be 50%.

On the other hand, you could make something, if the underlying didn´t move that much, straight buying instead. Exiting quickly.

STRAIGHT BUYING VS A DEBIT SPREAD. Choices!
 
this is an amazing long thread that involves trade ideas, position and portfolio gain/loss tracking, etc. this is the fun part of trading with other traders - seeing what they're doing, commenting, asking questions, getting advice, trading what others are trading.

i've been trading options for about 10 years now and always wanted a place like this to trade with others, but i wanted something more real time and collaborative. I'm also a web developer - so i built something for exactly this. it's like facebook + twitter combined with real time portfolio sharing and simulation.

this is something i myself as a long time options trader have always wanted - i would love a few traders from here to join me in trying out my product in private beta phase. it will be REALLY fun and educational!

contact me at mdroz8 at gmail dot com to try it out and let's have fun and hopefully make some money!
 
Ryan

I´ve been diddling around over the weekend with several mixed ideas. I do believe you have done them already? Can you tell me how they worked out?

- I believe you bet long, based on direction, and then you insured with a short term debit spread in the opposite direction? -

Probably using either first month, or weeklies. Want to tell me how that worked out?

There are so many variables with theta, gamma, IV and stuff. The results may not be anything at all, like an option calculator which goes to expiration would tell you.
 
Quote from Don Bright:

Day after day of losing premium. However, all you're doing is betting on a big move in the stock price, and soon..... obviously the short straddle means you want the stock to stay where it is approximately, close to or at the strike price.

Something new to think about:

Stock at $30. Sell $20 puts and $40 calls. Collect money daily as long as the stock stays between $20 and $40.

Don
More...


how does one Insure against a large unexpected Downside move,
that happens every 5 years or so?
[not the stock itself, the overall Market]

way OTM SPY Puts?

marc
 
Quote from marcoPolo21:

how does one Insure against a large unexpected Downside move,
that happens every 5 years or so?
[not the stock itself, the overall Market]

way OTM SPY Puts?

marc
More...

Turn in into an Iron condor: http://www.theoptionsguide.com/iron-condor.aspx, It's like buying insurance., you collect less premiums but the losses are capped in a raging bull or bear situation.

EX: buy a 15 put and 45 call so your loss is limited to $5 (20-15 on the put or 45-40 on the call)
 
Quote from marcoPolo21:

how does one Insure against a large unexpected Downside move,
that happens every 5 years or so?
[not the stock itself, the overall Market]

way OTM SPY Puts?

marc
More...

We're not in the insurance business, we're in the trading business. We have to bet where the edge is, and the edge is collecting time decay (theta). Over 80% of options expire worthless. Forget all those basic, simple old strategies that require extra contracts and commissions. They were designed back when we were trading for quarter dollars, not pennies.

Either go with the edge or slowly spend your account to zero with insurance. This may not be what you want to hear, but that's pretty much the way it is.

Now, to be fair, if you're so ultra conservative, just have triggers to alert you when to sell either more calls or more puts to keep your deltas near neutral. Have someone pay you for insurance, don't you pay them for it.

Don
 
"Something new to think about :
Stock at $30. Sell $20 puts and $40 calls. Collect money daily as long as the stock stays between $20 and $40.
Don "

Collecting premium on both sides is intriguing [tempting].
So,
lets say the stock moves up to the next strike [$35],
you sell more puts at...$25?
Then what is done at the Calls end, that you sold for $40?

thanks
marc
 
Quote from marcoPolo21:

"Something new to think about :
Stock at $30. Sell $20 puts and $40 calls. Collect money daily as long as the stock stays between $20 and $40.
Don "

Collecting premium on both sides is intriguing [tempting].
So,
lets say the stock moves up to the next strike [$35],
you sell more puts at...$25?
Then what is done at the Calls end, that you sold for $40?

thanks
marc
More...

The $40 calls are still worthless pretty much at $35, right? Don't do anything (depends of course on which expiration, I generally am referring to near term.

Don
 
03-15-12 08:18 AM
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.

------------------------------------------------------------------------------------
03-15-12 08:58 AM
Also bought SPY April 140 calls at 2.14 this morning.
Looking for 2.68 (+25%).

------------------------------------------------------------------------------------

Ryan,

I managed to close both of these trades today at +25%
above my total debit cost on each.


Jeff
 
You must log in or register to reply here.
Back
Top