My option trades

jeffalvinson · Mar 20, 2012

Quote from atticus:

Either the R/R is 10:1 or it's fantasy.

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Signal Types and Reward to Risk of each type:
STD (Standard), BON, and DYLD signal types have a
Reward to Risk of +1.0/-1.0.
STD-LEAD (Standard Lead) type signal is +1.91/-1.0,
STD-OBV (Standard Overbought) has a +4.66/1.0 reward to risk.

ForexForex · Mar 20, 2012

Quote from ryanpatrick:
03-20-12 04:11 PM

how much higher can AAPL go? Had to sell those puts again and bought 3 aapl mar 23 2012 605 calls at 4.50 just to see how far it can run up again this week. Jeez, is taking a few hundred each time too.

Flip Flopping all over the place. Those calls closed at $8.00, I assume you bought them hours before your post. I think you are loosing your Mojo with the AAPL trades.

atticus · Mar 20, 2012

Quote from jeffalvinson:

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

Signal Types and Reward to Risk of each type:
STD (Standard), BON, and DYLD signal types have a
Reward to Risk of +1.0/-1.0.
STD-LEAD (Standard Lead) type signal is +1.91/-1.0,
STD-OBV (Standard Overbought) has a +4.66/1.0 reward to risk.

That's fantasy. I will bet my account that it's complete BS.

atticus · Mar 20, 2012

Quote from ForexForex:

Flip Flopping all over the place. Those calls closed at $8.00, I assume you bought them hours before your post. I think you are loosing your Mojo with the AAPL trades.

You have less credibility than NE, if that's possible. FF is the guy who edited a buy to a sell in a thread when the sim-trade went against him.

probe1957 · Mar 20, 2012

Quote from atticus:

FF is the guy who edited a buy to a sell in a thread when the sim-trade went against him.

He certainly is. Yet he continues to post here and offer "advice" while apparently under the impression that no one remembers that. And then there was that trade of his the other day that, when it went bad, wasn't a trade at all but was just on his watch list. What a tool.

jeffalvinson · Mar 20, 2012

Quote from atticus:

That's fantasy. I will bet my account that it's complete BS.

You do realize that all those trades from September 2011 to
March 8, 2012 were back tested paper trades, don't you?
My real trades started at signal date 3/14/2012, plus the open trade signal date 3/19/2012 which have both been posted in real time on this thread.
atticus, you are probably right and time will tell, but I would be happy if this new program has a real trade success of W/L: 75%.

dreamliner · Mar 20, 2012

Seems like you aren't understanding that you can sell options on a "cash account" (whatever that is). When you open an account with Think or Swim, and fund it, you can trade strangles if your account size is big enough to handle the margin requirements. Simply look at "option buying power" and you'll see how much margin you have.

The way I do strangles is to sell at least 2 months out, with at least 6 contracts each. When the market approaches a strike buy the other side to make a spread and protect yourself in case the market turns around. Now you're buying much cheaper than if you had done a spread initially.

Then as the market continues to approach your strike, roll out and reduce risk. For instance, if the market is approaching your put strike, and you have 6 contracts, roll out in time and reduce the number of contracts, so that the maneuver is basically even (you didn't spend anything on the rollout).

Now you're protected on the call side at a very low cost to you and you've reduced the risk to half on the put side and given yourself more time. All is well. It's all about adjusting and removing risk.

Quote from falconview:

Don and Atticus

I get some of it anyway. The range for the market is between Calls and PUT strikes sold. Close the strangle before it goes through, or you are in trouble?

Just got back on the air. I lost my wi fi signal again. Been trouble shooting. Found out it was my wi fi plug in gadget that goes in the Usb port. Apparently the salt water sea air here on the beach, weakens the signal. Pulled it out and replugged it into a different port and IÂ´m back up again. Place down the beach said theirs was working, so I knew it had to be me.

I had closed my 3 contracts this morning at a -$105 loss. Now IÂ´m back on the internet, I see my trade is back to where I bought it. Yikes! IsnÂ´t that the way with these things.

I use two types of charting programs, Big Charts and Freestockcharts.com. Seems my Big Charts gives more accurate reading of the data, than Freestockcharts. Make note to myself to use that one for trading. The other is prettier and IÂ´ve got many more homemade indicators.

On margin. My monitor in TOS says 0.00 for margin and about $7300 in cash. Guess when I try selling a strangle, will see if I get rejected or not.

Is adjusting a strangle that is being broached a good idea? If so, how? It looks to me I should make a sold strangle wider, two strikes OTM on each side. Is that a good idea? Give an index space to move.

IÂ´m probably going to jump back in this regular straight buy trade, but tomorrow. Big Charts says not to do it today.

Hmnn! That SOLD strangle lost money. Sold for .42 cents and bought back at .53 cents. The CALL side went through the sold strike a bit. Seems to me I would have to be wider on the strikes?
WEEKLY QQQ sell 67 Calls @.23 cents
sell 66 PUTS for .19 cents

Not enough time to collect enough TIME DECAY. ( THETA )
NO FREE LUNCH!

That JEFF strangle sold, still ahead .10 cents.

Okay IÂ´m getting the feel of this selling strangles business. DonÂ´t know if I have any margin to qualify, but will find out eventually.

atticus · Mar 20, 2012

Quote from jeffalvinson:

You do realize that all those trades from September 2011 to
March 8, 2012 were back tested paper trades, don't you?
My real trades started at signal date 3/14/2012, plus the open trade signal date 3/19/2012 which have both been posted in real time on this thread.
atticus, you are probably right and time will tell, but I would be happy if this new program has a real trade success of W/L: 75%.

I've never seen an applied delta1 system approaching 3/4 at 4:1 R/R. Either has anyone else. It's curve-fitted.

newwurldmn · Mar 20, 2012

Quote from probe1957:

He certainly is. Yet he continues to post here and offer "advice" while apparently under the impression that no one remembers that. And then there was that trade of his the other day that, when it went bad, wasn't a trade at all but was just on his watch list. What a tool.

Don't forget his GMCR where he said he was short puts and then said he made that up after it turned out the stock was down $10.

newwurldmn · Mar 20, 2012

Quote from jeffalvinson:

I agree, I am having a hard time swallowing it myself, so I am trading small until "proof of life."

The data is wrong. It's highly unlikely you have found the secret to perfect prediction of the market especially when you encounter two periods (high volatility in the beginning) and a benign rally.

I would spend more time culling through his program rather than trading it with real money which will offer you no insight.