My Options Play

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Go!

$$$$$$$$$$$$$$$$ :D


Quote from Choad:

Good luck Multi!

Here's one you guys might want to look at: GGC

I bought 6-month calls a few days ago (my time frame is a little longer than yours :D). I'm hoping for the ole bouncerroo.

Got a ways to go, but it's working so far!

Good trading to all.

C


ggc
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Multioption:

I have been on vacation and just came upon this thread today.

I want to congratulate you on your success. Not so much for what will happen before Dec, but for what you have done already if you have traded succesfully for so many years.

Starting this thread was a very good idea. I like to see others
succeed, specially if they have the same trading ideology that I have.

Best of luck !
 
Nutsneal:

I was surprised nobody picked on your post. I also use DITM.

Could you tell us, how do you balance the ratio of puts and calls ?
Are you fully invested at all times?

I experimented setting this up, but found that by being fully invested at all times I was taking trades to fulfill the strategy, and took trades I would have not taken otherwise.

How much of your option position portfolio is in cash at any moment ?


Thanks !




Quote from NUTSNEAL:

Multioption

I have used the deep in the money option directional trading strategy for many years.

Although often I go much deeper in the money to get a delta of close to 100 with lower theta.

One thing I have found very helpful is to attempt to neutralize the overall effect of the market tide by balancing call positions with put positions (especially if I don't have a strong directional bias on the overall market.

www.elitetrader.com/vb/showthread.php?s=&postid=73492#post73492 (also read next page top post)

Over the years it has appeared to me that most markets are a game of attack and defend certain price levels.

Many people don't understand the shortcomings of most option pricing models brought about by the game of attacking and defending certain price levels.

Most models (and therefore most option prices) are based on the probability distribution of prices having a higher probability of remaking closer to where they currently are. That is if the current price is 59, it is assumed that there is a much higher probability of the price being 57 than 55 at option expiration. This is good in theory but very often incorrect in practice. Quite often if a specific price level (line of defense)(whether it is resistance or support) is broken, the next battle field (or game field) may be several points away.

www.elitetrader.com/vb/showthread.php?s=&postid=454508#post454508

Personally, I have been very impressed with your ability to keep your mind on the war and not concentrate too much on the individual battles or losses and to be able to cut you losses rather than be frozen in indecision, (A TRUE sign of a winner from my experience)
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Quote from iceman1:




10-28-05 12:56 PM

VZ

fur sure it could PB on Monday... thus... I am looking at possibly selling the front 30c

-- however -- since I "believe/think" we likely rally beginning in early Nov (next week) and also "believe" VZ goes to 32.50 or above-- do not want to limit potential upside in Dec 30c


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guess my hunch about a rally this week was right on - SO FAR? :eek :eek:

Schizo market - but gotta be considered a great trading market so far - with lots of sort candidates ahead once it runs it's course

Chicago Bulls open their season tonight - as a Chicago trader- I always considered the Bulls season and their prior success in the Jordan era, as a "corollary" to the Bull market of the late '80s-90s. Maybe it will correlate again this year.

Anyone want to backtest it ...?! :D :D :D

Ice
:cool:
 
Quote from Multioption:

Iceman,

What are you going to do with BBY? This stock is headed to $48 as forecasted!
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I am looking to add Jan06 50c on PB to 45 +/-

sell Dec05 47.50c against my existing long Dec 45c - and "maybe" close my Nov 45p - then roll into short Dec 47.50P

I want to see when retail sales are next scheduled for release -

b.t.w. -- BBY earnings on 12/13
 
Quote from novel20:

Who mentioned about shorting AAPL a few days ago?

http://finance.yahoo.com/q/bc?s=AAPL&t=1d

Would have got it by a freight train today.
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http://www.elitetrader.com/vb/showthread.php?s=&postid=879941#post879941

I mentioned it. I didn't enter because AAPL gapped down on 10/27 going through my limit order, and I never chase orders. If I entered I should've been ok, because I wanted to enter at $57 with a $3 trailing stop, which meant $60. As the 10/28 low was $54.17, my stop would've been $57.17. I wanted to open the Nov 60 Put for $3.8 and I didn't get filled.

This proves that money management (sizing and exits) could save / protect your butt when you're wrong.
:)
 
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