Added msft apr wk1 90 calls on that news. We'll see how this one plays out into next week too.
I've also added into fb calls on every weakness opportunity so far.
I've also added into fb calls on every weakness opportunity so far.
My trades
- Thread starter optionsinvestor
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I swear, I try not to day trade these options, but FB calls from 3.43 to 4.90 and I can't help but close this trade for a day trade.
All out of the 10 calls at 4.65 avg. can't leave this profit out there with that much risk in the market right now.
All out of the 10 calls at 4.65 avg. can't leave this profit out there with that much risk in the market right now.
Added to msft calls for a total risk of -1000. I'm also going to shorten my trades for the next 2 weeks. If the stock hits my target, I'm going to close the position. I had a target for FB at 162 (closed early), and have an initial target of 92-92.5 for msft. I'll hold that one into Monday and it that target is hit, I'll close it right away. The reversals are just too nasty.
Also added positions into the close for Q2. I'm in JPM Apr wk1 110 calls, and NFLX Apr wk1 300 calls. There was no negative news on NFLX at all, but it sure fell like AMZN and FB. I think it's over done on that one. Interest rates are going up, and the FOMC did sound more hawkish. Overtime, this should do well for banks like JPM. I've added here to see if I'm ahead of more buying next week.
Also added positions into the close for Q2. I'm in JPM Apr wk1 110 calls, and NFLX Apr wk1 300 calls. There was no negative news on NFLX at all, but it sure fell like AMZN and FB. I think it's over done on that one. Interest rates are going up, and the FOMC did sound more hawkish. Overtime, this should do well for banks like JPM. I've added here to see if I'm ahead of more buying next week.
Do you look at implied volatility? With recent sell off, it is/should be high on indices, and should fall if there is a rally. How do you deal with that if the same happens to options on individual stocks? Also, what would be the top stocks you would be watching? Maybe sharing them can get readers to comment on them, as sort of wisdom of the crowd.
Today's price behavior on NFLX looks different than recent days.
I also liked the charts that Jeff posted. If it is ok that he posts more of his chart observations , I like to read them.
I also liked the charts that Jeff posted. If it is ok that he posts more of his chart observations , I like to read them.
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OI, looking at this 12 month chart of the VIX with daily candles and the 200 day moving average:
Notice how the first 10 months from April 2017 to January 2018 the VIX was relatively smooth
moving in a tight channel between 10 to 14 (with only a few occasional spikes to 16) and also notice the 200 day moving average was just flat and listless with no real trend.
Now notice in February 2018 and March 2018 the elevated VIX above a rising 200 day moving average.
Until we get back to the smooth VIX channel and flat 200 day moving average we had from April 2017 to January 2018, its going to be difficult to hold profitable trades knowing the possibility of a hugh reversal the very next day.
Notice how the first 10 months from April 2017 to January 2018 the VIX was relatively smooth
moving in a tight channel between 10 to 14 (with only a few occasional spikes to 16) and also notice the 200 day moving average was just flat and listless with no real trend.
Now notice in February 2018 and March 2018 the elevated VIX above a rising 200 day moving average.
Until we get back to the smooth VIX channel and flat 200 day moving average we had from April 2017 to January 2018, its going to be difficult to hold profitable trades knowing the possibility of a hugh reversal the very next day.
I used to look at IV and compare it to the stock's historical vol. I'm not sure if you have ever tried some of the tools in Optionsxpress.com, but they had great calculators for this stuff. (OX was taken over by schwab and I haven't looked at schwab's entire platform to see if there is something similar). I used that calculator all the time to the point where I started making educated guesses on where IV and his. vol can be at for certain individual stocks.
As for top stocks, you have to keep FANG stocks in your streamer. I also have second tier techs like ADBE, CRM, ORCL, INTC, MSFT (although I believe MSFT and INTC belong with FANG stocks), and semis like AMAT and MU. On the industrial side, I have BA, CAT, DE, and MMM, and for banks I use C, BAC, JPM, and GS. I also have wildcards like TSLA and SHOP where no one really knows where they are headed at any time. I'll I like Scwhab's platform where I can pull up intraday charts on any of the stocks I'm watching. I'll also check volume on most of these large cap stocks to see if there was conviction in the buying or selling.
That's true Jeff. I've been shortening my positions from 2 weeks to 1 week to just days and even intraday. It'd be interesting to see how long the VIX tend to stay above 16 during these periods of increased volatility. I know we've had quite a few since 2000. I know one period of volatility is different from another, but over time, there must be an average and with data we can even predict if we're halfway through one or not. Heck, I bet with enough data we might even be able to see patterns inside these periods that could be leading indicators to a new rally.
Thanks toyou (and to Jeff) for sharing! I also wish you that your account continues to rise nicely, and that one day you could see an M replacing a K.