My option trades

Jeff

Okay I get the message on the CREE decision. Understand that well. I just was puzzling over your decision tree in making the trade. I could not see anything, leading into it from the chart. PANIC I understand.

I´m going to sweat this current cash trade this week, as I have to UP my RISK amounts, to achieve account target by June. Jumped to 3 contracts on this one, if it wins, will jump to either 5 or 10 contracts.

I´ll either make the June target or go bust.
 
Don

I don´t mean to disrespect your selling THETA advice. I understand it works and works well. It is the RISK that scares the beejeeezus out of me.

I think it was last year, I traded on paper, CREDIT SPREADS, Iron Condors and such to sell THETA. I did it for about 7 or 8 months. Indeed through compounding it was possible to double your money in 5 months. What happened and thank heavens it was paper trading. In there, were either 2 or 3 market corrections. They moved too fast. I was like a deer immobilized at night in a car headlights.
Each black swan event overwhelmed my paper trading account and it went almost back to zero each time.

I swore off those things.

That said, in CASH, I´m not totally against doing a credit spread. But it makes me exceedingly nervous.

Now with my small retail account in cash, the only way to sell THETA is to do a credit spread. Please correct me if I am wrong in that assumption? If there is another, then tell me? If I am remembering right, a credit spread earns 3% to 5 %. But the margin needed is like $500 per contract.
I am actually running one now, in paper. But it is JUNE and not much melting of THETA there. It´s kind of floating between .26 cents and .31 cents and I need .25 cents just to pay the commissions. I couldn´t find premium at closer in options. Like WEEKLIES, or FIRST MONTH.
Your message of selling THETA gets through, I just don´t much like the Risk Reward and the amount of cash I could lose doing them. I´m not looking to go to expiration in this trade, just widen the spread, or is it narrow? Forget it, I´m trying to refresh my memory on them.
 
Quote from falconview:
I see Ryan went quiet??
More...

I think he ate some bad apples. I tried to warn him about the bad apples and suggested apple sauce instead, but he wanted the apples. You get the apple taste with apple sauce, but without the risk of the apples.
 
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.
More...

Not sure how you can oversimplify options, they are very simple. They expire. Conversions all trade at theoretical fair value based on time until expiration and interest rates. All the rest is just stuff.

Keep it simple. Options have been "very good to us" - and I am thankful for them, no reason to get all concerned.

How is Atticus lacking a moral compass? He doesn't need my help with anything, a smart guy. Did he upset someone that I didn't happen to see?

Don
 
Quote from falconview:

Don

I don´t mean to disrespect your selling THETA advice. I understand it works and works well. It is the RISK that scares the beejeeezus out of me.

I think it was last year, I traded on paper, CREDIT SPREADS, Iron Condors and such to sell THETA. I did it for about 7 or 8 months. Indeed through compounding it was possible to double your money in 5 months. What happened and thank heavens it was paper trading. In there, were either 2 or 3 market corrections. They moved too fast. I was like a deer immobilized at night in a car headlights.
Each black swan event overwhelmed my paper trading account and it went almost back to zero each time.

I swore off those things.

That said, in CASH, I´m not totally against doing a credit spread. But it makes me exceedingly nervous.

Now with my small retail account in cash, the only way to sell THETA is to do a credit spread. Please correct me if I am wrong in that assumption? If there is another, then tell me? If I am remembering right, a credit spread earns 3% to 5 %. But the margin needed is like $500 per contract.
I am actually running one now, in paper. But it is JUNE and not much melting of THETA there. It´s kind of floating between .26 cents and .31 cents and I need .25 cents just to pay the commissions. I couldn´t find premium at closer in options. Like WEEKLIES, or FIRST MONTH.
Your message of selling THETA gets through, I just don´t much like the Risk Reward and the amount of cash I could lose doing them. I´m not looking to go to expiration in this trade, just widen the spread, or is it narrow? Forget it, I´m trying to refresh my memory on them.
More...

"only way is a credit spread"? What, you're not paying attention. Just pretend to sell outside strangle, and leave it alone. I have to say, with vol so low, you may not get much for it, but it will be 'safer' for you. Stock at 35, sell 30 put, 40 call. Watch money come in. Keep all this simple. Put those stupid books down.

I spoke with Larry McMillan a few times, I asked about his new(er) books and all that. Same info, just moved chapters around he said with a smile. Nothing new, nothing difficult, just basics.


c
 
Yeah, why is Ryan quiet?

Is he a student like me? I have exams so I haven't been posting much.

Hopefully he didn't get wiped out with something silly... he was having a good run.

I'd say he's had some personal s#it come up.
 
tmf

I didn´t notice ORCL for an earnings on Tuesday?

I have from the whisper website marked to watch with paper trades, TUESDAY

JEF April Call 19 @ 1.10
OMN April Call 5 @ $1.05

I´m just playing with it, trying to get a feel for what this stuff does on Earnings Reports.
_____________________________

Wednesday nothing
____________________

Thursday

LULU and IHS
_____________________________

FRIDAY

KBH
_______________________________

There is an HONEST used car salesman on the web, A.J. Brown, who says you take the CALL and do a PUT debit spread. As a method. Might test that idea on paper NEXT WEEK.
 
Don Bright

Okay on the stock and strangle method. First I ever heard of it.

"only way is a credit spread"? What, you're not paying attention. Just pretend to sell outside strangle, and leave it alone. I have to say, with vol so low, you may not get much for it, but it will be 'safer' for you. Stock at 35, sell 30 put, 40 call. Watch money come in. Keep all this simple. Put those stupid books down. "

Is there any particular month involved with this? If your selling THETA I would hazard a guess at FIRST MONTH? Could it work on the weekly?

So you buy the stock, do your strangle, collect the THETA and then I presume go to expiration and then sell the stock? I presume the stock guarantees your strangle trade, for selling options as a margin qualifier?
 
I know you guys think I´m stupid and I agree. HELP ME OUT HERE?

How do you buy and sell stock in THINK OR SWIM ?

I took a quick look at it, but it is all options. Seems to me. It´s 4 a.m. here so can ask the HELP DESK tomorrow I guess.
 
You must log in or register to reply here.
Back
Top