qiuniu you're a johnny-come-lately on this thread. I suggest you go back to the beginning and read every post and study every attachment before you post.
Regards
Uninvited Guest
My Options Play
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qiuniu you're a johnny-come-lately on this thread. I suggest you go back to the beginning and read every post and study every attachment before you post.
Regards
Uninvited Guest
I looked at QAAWL's last trades of today, and except the last 10 contracts filled at $3.9, all the others were filled bellow it. A small bump up in price will help to get filled (I don't believe I hit the best possible entry point). $0.10 is about 5% of my $1.8 stop loss. It adds up in long run (if it's a win it covers some of the California tax
). I avoid using market orders because I don't want to risk a bad fill. For the same reason I prefer using stop-limit orders instead of simple stop orders, especially when trading options.If I don't get filled and the trade runs away from me, I don't chase it. I look for other opportunities in the same stock or others. I try not to be emotional.
QQQQ has tighter bid/ask spreads, but when they're larger you can shave a nickel or a dime here or there. If you trade DIA you'll find out that sometimes you get better fills than the average bid-ask price.
When you leg into a spread $0.10 might allow you to put on a position that has even or positive expectancy, and this matters in long run.
What do yo think about my assessment on AAPL? What is your short / intermediate term outlook? What option strategy would you suggest? What about entry, stop loss, exit target, time frame?
I discussed today three plays: VZ, HUM, AAPL. I wonder what are your and others opinions about these stocks' outlooks, about the trades I proposed, etc..
When it comes to AAPL I'm bullish going into the christmas season. Time frame is always 4 weeks or less for the ATM or slightly OTM options held to expiration, no sense paying for the time premium.
With my broker MARKET orders always get filled at the ASK price the second I submit the order, no messing around and watching every tick.
If you don't like paying for time premium, maybe you should look more into ITM options.
To compare one against the other I graph a position made up by subtracting one from the other for even money.
I.e. if the ATM is $1, and the ITM is $2, I graph the position:
+2 ATM
-1 ITM
This is a backspread. Its worst case price is ATM, where it loses value the fastest. It has a breakeven point OTM that moves further in time.
It means that the ATM option will outperform the ITM option only beyond the breakeven point. For all the other prices it will not. If your price and time frame outlook is that you'll be beyond the breakeven point, then choose the ATM, otherwise is better to buy the ITM. This can be applied for any two strikes, and obviously you'll get other ratios for even money comparison.
You can apply the same technique to compare the performance of a long option versus a vertical spread (it will look like a ratioed spread), or for any other two positions. Just subtract one from the other and draw the graph.
Another thing to consider is your outlook on the future IV, again, over your time frame. I.e. for a vertical spread: when the IV is in the highest percentiles is better to have the short options ATM, but when the IV is in the lower percentiles it is better to buy the ATM strike. This is only statistically better, based on the reversal to the mean assumption. This might not happen during your time frame, so again you have to analyze it and make your decision.
So, are you saying there's no time value on ATM and OTM options? You sure have something to share with us.
Forumites are watching!
Bull call spread sounds like a 'do' to me only question is why use front month rather than Dec?
by the way I did open VZ WV (32.50p) and Dec 32.50p, but also opened +Dec 30c and Nov 32.50c (@.15) ; planning on selling some Dec 32.50c today or next week, i.e. leg in to bull spread
I may adjust my position by lifting Dec 32.50p/adding Dec 30P (holding Nov 32.50p). Will depend on whether VZ trades higher today (above opening prints) after it's small opening gap is resolved.
IcE
uninvited_guest
no offense bro... you sound like a rank amateur or some newbie who has no clue.... like guys who started playing poker last year or last month and miraculously become mavens overnight!
Personally, I have read your disruptive posts enough already. IF you got something tangible to add that would enhance a thread please do so, otherwise start your own thread as another trader has already commented. You are rudely interfering with all others who view this thread (IMHO).
We have enough charlatan crtiics in the world and on ET.com; we sure don't need another one! :eek:
IcE
Quote from iceman1:
Bull call spread sounds like a 'do' to me only question is why use front month rather than Dec?
by the way I did open VZ WV (32.50p) and Dec 32.50p, but also opened +Dec 30c and Nov 32.50c (@.15) ; planning on selling some Dec 32.50c today or next week, i.e. leg in to bull spread
I may adjust my position by lifting Dec 32.50p/adding Dec 30P (holding Nov 32.50p). Wil depend on whether VZ trades higher today (above opening prints) after it's small opening gap is resolved.
IcE
I also have a position in IMCL
+Dec35c
-Nov35c (sold premium near highs after selling my long calls yesterday traded from at .60c to 1.75).
(.70 debit)
-Nov35p
(i.e. = sold 35 straddle)
**ratioed 2/1 calls/puts
+Jan 30p
I posted IMCL on this thread a week or two ago along with NIHD.
"ALWAYS" .... 4 weeks or less for the ATM or slightly OTM"?? Not 3 weeks or FIVE weeks or 3 1/2 weeks.
it 'always' is that way?
Where did you come up with that?
I have seen .20 cent options go to 2.50 in the last 2-5 of the expiry cycle, and that's post-2000.
You gotta stop reading Money magazine.
Ice
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