My Options Play

uninvited_guest · Oct 11, 2005

Quote from Multioption:

Order placed:

Action: Buy to Open
Options' symbol: .UKQJF (OCT 30 Call)
Underlying security: PEET
Entry Price: Limit 2.20 DAY
# of contracts: 40
Order Status: Filled at $2.20/contract

This is a risky trade considering the time left to expiration. My stop loss at 1.70 below the entry price.

Did your stop get hit at $1.70?

Or is your stop at $2.20 - $1.70 = $0.50?

Multioption · Oct 11, 2005

Quote from nonprophet:

OK, but why not?

Let's wait and see how the trade pans out.

thenewguy · Oct 11, 2005

Quote from Multioption:

Let's wait and see how the trade pans out.

lol, so far it's one of the best calls of a top I've ever seen! But you did say 5 to 7 days I believe, so I'll let this ride as long as you do....

- The New Guy

iceman1 · Oct 11, 2005

Quote from Multioption:

Iceman,

There's nothing that can make me touch a range bound stock like BBY, although with the possibility for uptrend. IMCL is in a bearish mode but seems to be getting ready to go North; how long the uptrend will last is unknown to me. IMCL and BBY are not in my good list, at least for now.

What are you expecting IMCL ad BBY to do?

be careful with options expiry... they (UKQJF) could or might expire near worthless.... maybe consider rolling into back month... a/s/a/p

in 20/20 hindsight a better trade looks to have been

+Nov30c/-Oct30c

p.s. i will add that with 8 days left until expiry these calls could still trade above 2.50 IF stock moves to the 32.50 level which is not out of the Q as u know. I don't follow this one so don't know how much arbitraging/pinning occurs with it's options such that unwinding could swing it back toward the aforesaid upper level.

TRID "looks" to be a "victim" of expiry pressure.

Choad · Oct 11, 2005

Order placed:

Action: Buy to Open
Options' symbol: .UKQJF (OCT 30 Call)
Underlying security: PEET
Entry Price: Limit 2.20 DAY
# of contracts: 40
Order Status: Filled at $2.20/contract

This is a risky trade considering the time left to expiration. My stop loss at 1.70 below the entry price.

Quote from Multioption:

I've not put a stop loss on the PEET Oct 30 Call. I'm watching the intraday for a shift in trend mode; none has happened yet. I will update.

Now 1 X 1.20 = -$4,800 Ouch!

Good luck. These short term op plays are tough...

Multioption · Oct 11, 2005

Quote from Choad:

Now 1 X 1.20 = -$4,800 Ouch!

Good luck. These short term op plays are tough...

$4,800 is a big amount for small traders. One important thing about trading is that the trader must separate his emotion from the rules.

Tomorrow is another day!

Choad · Oct 11, 2005

Quote from Choad:

Nice work if you can get it!

But how many times have you busted out on the $10K?

Regards.

C

Quote from Multioption:

$4,800 is a big amount for small traders. One important thing about trading is that the trader must separate his emotion from the rules.

Tomorrow is another day!

Well...I have a decent sized account and it still seems like a lot to me.

And it is about 1/2 of your $10K...

But tomorrow IS another day. Good luck!

C

uninvited_guest · Oct 11, 2005

Quote from Choad:

Well...I have a decent sized account and it still seems like a lot to me.

And it is about 1/2 of your $10K...

But tomorrow IS another day. Good luck!

C

This PEET trade came to almost 100% of the entire account. 40 contracts X $2.20. This is actually gambling not investing.

Of course PEET could still make a comeback in the next 1 1/2 weeks, but its still gambling.

Multioption · Oct 11, 2005

Quote from Choad:

Well...I have a decent sized account and it still seems like a lot to me.

And it is about 1/2 of your $10K...

But tomorrow IS another day. Good luck!

C

No! $4,800 is not about half of the account. The account was at 20K courtesy AVID, DIA, and CHS trades, but is now down to about 15K.

Did you check the file uploaded in one of my posts?

Choad · Oct 11, 2005

Quote from Multioption:

No! $4,800 is not about half of the account. The account was at 20K courtesy AVID, DIA, and CHS trades, but is now down to about 15K.

Did you check the file uploaded in one of my posts?

My point was, that if you had started with the PEET trade you would have lost 50% in 1 day.

Then the other trades might have been tough to do?

What if you had two "PEETS" in a row?

JMHO from being a "small" trader, but risking about $9K on a trade, with a "starting" account of $10K (or heck, even $20K) WILL result in plenty of blowouts. I don't care how good of a stock picker you are.

Hey, that's just my opinion. I am very often wrong.

Good luck and good trading to you!

C