My Options Play

[cnms2]

In my opinion Maverick74's three-four posts on the first pages of that thread are clear enough for anybody to understand that there's no edge in selling vs. buying options, that it's just another popular fallacy.

I may have alreay read that thread, I don't recall, but the supposed / claimed edge of the options' seller was discussed and misunderstood so many times, that I doubt there's a new angle that I'd have the patience to read and try to understand and / or argue.

Multi, are you of the opposite opinion?

Quote from Multioption:

I found on ET an interesting thread:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=53037&perpage=40&pagenumber=1

I've been playing with the intraday charts for some time now but won't trade until UPL, SNDK, and several others including AAPL which I know will be ready in few days indicate long entry.

$2 - $3 move by a stock is not indicative of a true trend!

 

[thirst]

hey multi, thanks for not minding me intruding on your thread. I have created my own. I will continue to follow your plays - good luck.

 

[Multioption]

Quote from cnms2:

In my opinion Maverick74's three-four posts on the first pages of that thread are clear enough for anybody to understand that there's no edge in selling vs. buying options, that it's just another popular fallacy.

I may have alreay read that thread, I don't recall, but the supposed / claimed edge of the options' seller was discussed and misunderstood so many times, that I doubt there's a new angle that I'd have the patience to read and try to understand and / or argue.

Multi, are you of the opposite opinion?

I wholeheartedly agree with Maverick74!! In fact, Maverick74 and riskarb are something else - options guru. My resolve to play outright options stemmed from the fact each time I adjust my trade, I end up losing money because most times stock would go in the anticipated direction. So there really is no edge in selling options as opposed to buying. All traders have one common enemy in this trade - Gaps! It can make or break a trader.

 

[Multioption]

I can't remember the last time my order was placed before market opens...maybe during Xecute in 2003....

ATI - looking at April 55 Puts for tomorrow morning. Will update if trade is plugged.

I didn't have the liver to short AAPL and SNDK even though I knew they would drop. I must be able to project the magnitude of the impending move before I take a plunge, which wasn't the case in AAPL, SNDK, et al.

 

[cnms2]

I shorted yesterday AAPL (a small position). Conservative target $63.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1011759>

Quote from Multioption:

I can't remember the last time my order was placed before market opens...maybe during Xecute in 2003....

ATI - looking at April 55 Puts for tomorrow morning. Will update if trade is plugged.

I didn't have the liver to short AAPL and SNDK even though I knew they would drop. I must be able to project the magnitude of the impending move before I plunge, which wasn't the case in AAPL, SNDK, et al.

 

[Multioption]

Quote from cnms2:

I shorted yesterday AAPL (a small position). Conservative target $63.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1011759>

I'm glad you short AAPL. I couldn't convince myself to buy Puts on SNDK and AAPL and some other stocks. And that is leading me to start exploring again the idea of holding for 2-3 days.

 

[cnms2]

I'll not take now a position in ATI.

Its setup seems to indicate a retracement coming (when? how deep?), but the difference between the current price and the first line of support (~$2) is too small compared to the stop loss (~$3); reward/risk ~.67. ATI's earnings report is scheduled for 4/20, IV is ~41% just a little above average.

Also, I don't see yet a good short entry signal.

On the other hand this is a newly traded company with a pretty bullish pattern, and I wouldn't enter short until a true reversal happens. I prefer to avoid retracements.

Quote from Multioption:

I can't remember the last time my order was placed before market opens...maybe during Xecute in 2003....

ATI - looking at April 55 Puts for tomorrow morning. Will update if trade is plugged.

I didn't have the liver to short AAPL and SNDK even though I knew they would drop. I must be able to project the magnitude of the impending move before I take a plunge, which wasn't the case in AAPL, SNDK, et al.

 

[Arnie Guitar]

Quote from cnms2:

I shorted yesterday AAPL (a small position). Conservative target $63.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1011759>

I don't understand why you would short the stock and buy puts.
Both positions have the same hope, that AAPL goes down.
Why didn't you just buy more puts?
They are already ahead 23%, while the stock position is only ahead 3 1/2%.
Quite a difference in bang for the buck.
So many times people write about stock positions requiring too much capital.

Please excuse the inexperience of my question.

Arnie

 

[jj90]

I don't think retails could do this cause we simply don't have the capital to push around, but I once heard some institutions bought calls/puts only to then massively long/short the stock in question pushing the stock in the appropriate direction creating a profit on the option side which could then be locked away.

 

[cnms2]

This AAPL play is part of a trading / money management method I'm currently testing.

Quote from Arnie Guitar:

I don't understand why you would short the stock and buy puts.
Both positions have the same hope, that AAPL goes down.
Why didn't you just buy more puts?
They are already ahead 23%, while the stock position is only ahead 3 1/2%.
Quite a difference in bang for the buck.
So many times people write about stock positions requiring too much capital.

Please excuse the inexperience of my question.

Arnie