My Options Play

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nay ...

I do contract programming work, my last project ended, and I decided to build my own software in the hopes of finding entry points.... entry points = anamolies ... (stocks move sharply out of their trading ranges, ... so the theory goes)

That was my funny money (not all that funny actually) .... I started with 10k, lost it ... argh, but it was offset by investment profits, fed another 5k into the account and that's down to 4k....

Yeah, I need to get some paying work and do some serious studying on the side ;)
 
Update:

Bought yesterday 3 SNDK May 62.50 Call @ 2.65
Bought today 25 LCAV June 50 Call @ 2.55

Will add more positions.

Caveat: I'm experimeting OTM options!
 
In the beginning most of us thought that trading is much easier, and most of us were humbled by the market. As you had to spend years to acquire your programming skills, so trading requires. Acknowledge that you don't know yet how to trade options, keep learning without throwing money to the market, paper trade, then start very small with real money, and build your own niche. Learn what money management is and apply it religiously.

Check these links:
Quote from pattersb:

nay ...

I do contract programming work, my last project ended, and I decided to build my own software in the hopes of finding entry points.... entry points = anamolies ... (stocks move sharply out of their trading ranges, ... so the theory goes)

That was my funny money (not all that funny actually) .... I started with 10k, lost it ... argh, but it was offset by investment profits, fed another 5k into the account and that's down to 4k....

Yeah, I need to get some paying work and do some serious studying on the side ;)
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Quote from cnms2:

In the beginning most of us thought that trading is much easier, and most of us were humbled by the market. As you had to spend years to acquire your programming skills, so trading requires. Acknowledge that you don't know yet how to trade options, keep learning without throwing money to the market, paper trade, then start very small with real money, and build your own niche. Learn what money management is and apply it religiously.

Check these links:
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Pattersb: listen to what cnms2 has to say. He is so... right.

On his '38 steps' post, I think I am now at about step 28,... and I have been trading (investing) for 40 years.
 
thanks for the tips and encouragement. I'll definitely review the 28 points. I need to take this far more seriously. (Or perhaps less so ....)

I have an interview tomorrow for a real-job.... WOW! What a great job market! Best in years .... VERY BULLISH SIGN

I'd appreciate any thoughts on this strategy, (at least one of them) My thinking is this: Prices do Not have to go back up, but they Must go down... So I look for big movements up, and then a top. Probably not a very novel approach, but

I was strongly considering buying 10 April ITW puts @ 2.75 today
was watching it all week. STN also.
 
Quote from pattersb:

My thinking is this: Prices do Not have to go back up, but they Must go down...
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You gotta read the 38 points and spend more time learning the basics of investing/trading. The above statement tells me you need to put your checkbook back in your pocket until you have a better understanding of and feel for the market..
 
Quote from wabrew:

You gotta read the 38 points and spend more time learning the basics of investing/trading. The above statement tells me you need to put your checkbook back in your pocket until you have a better understanding of and feel for the market..
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way ahead of you ;) I'm probably at step 15. Take a breather, and do some feasiblity work ...

I suppose the up/down analysis was a gross simplification. Is it true, that often enough, as fast as buyers run up the price sellers drive it back down? I'm looking for "unjustified run-ups", stocks that are trending downward that move sharply out of the trading ranges on little-or-no-news.

For instance, FNM on 2/23 has been the one trade I've made that actually meets my rules. (discpline is definitely a virtue..) The broader markets where trending down, FNM gapped up, on news that was not as bad as expected, but still bad.

Suddenly puts were extremely cheap, Mar 55 puts went to .40, I bought 20 ... whent to 2.40 in three days. If I can find 50 similiar situations a year...

I won't but still I consider shorting OSTK, today. volume's drying up and the news sounds mostly bad ... yet it's up 40% for the week.
 
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