Quote from 9999:
Speaking of Butterfly, here's one I hope you like:
http://it.youtube.com/watch?v=KVRhuQWS4tc
sorry, couldn't resist....
Man, what a voice - thanks for sharing.
oldschool getting schooled
- Thread starter oldschool
- Start date
Man, what a voice - thanks for sharing.
Keep up fellas....no rest for the wicked.
Trade #3:
UL: CALM: Earnings due Friday 12/28.
Bias: Bullish
Rating: 8*
Time frame: Looking to close position within1-5 days after release.
Stock projected prices within holding time: Possible move to 29 or higher after release.
Thoughts:
Without getting into details, a potential explosive move to the upside.
*Due to earnings play, max loss < avg max loss/trade in this acct.
Max loss: $1,000
Max margin for trade: $3000
Avail Margin: $15,000
Trade #4:
UL: ECA or ME, doesn'tât matter â both in energy. Please choose whichever looks better (from an options point of view â the two stocks both have what I refer to as a short term dragon head pattern. Any TA gurus ever heard of one of those?
Bias: VERY bullish
Rating: 9
Time frame: I want to hold a net long position for 3-6 mos. LEAPS maybe?
Stock projected prices within holding time: ECA to 80+, ME to 30+.
This one needs no explanation I think. I just want to get looong.
Max loss: $1,500
Max margin for trade: $5,000
Avail Margin: $12,000
Both CALM and ME are thin stocks. If it's not liquid enough in the options mkt for a trade, then I understand.
NOTE: I am officially opening this thread up as a for-profit thread. You want to make $? Help me. If you already make a lot of money, then of course, stop reading. But maybe someone who could use a few bucks? Personally, I see the service being worth a thousand dollars or so in the short run. Is this unreasonable on my part? Am I being too cheap? Whatâs this kind of options help worth? Somebody please raise your hands, text me, email me, PM me, help me, Iâll pay.
Fu*kers
Trade #3:
UL: CALM: Earnings due Friday 12/28.
Bias: Bullish
Rating: 8*
Time frame: Looking to close position within1-5 days after release.
Stock projected prices within holding time: Possible move to 29 or higher after release.
Thoughts:
Without getting into details, a potential explosive move to the upside.
*Due to earnings play, max loss < avg max loss/trade in this acct.
Max loss: $1,000
Max margin for trade: $3000
Avail Margin: $15,000
Trade #4:
UL: ECA or ME, doesn'tât matter â both in energy. Please choose whichever looks better (from an options point of view â the two stocks both have what I refer to as a short term dragon head pattern. Any TA gurus ever heard of one of those?
Bias: VERY bullish
Rating: 9
Time frame: I want to hold a net long position for 3-6 mos. LEAPS maybe?
Stock projected prices within holding time: ECA to 80+, ME to 30+.
This one needs no explanation I think. I just want to get looong.
Max loss: $1,500
Max margin for trade: $5,000
Avail Margin: $12,000
Both CALM and ME are thin stocks. If it's not liquid enough in the options mkt for a trade, then I understand.
NOTE: I am officially opening this thread up as a for-profit thread. You want to make $? Help me. If you already make a lot of money, then of course, stop reading. But maybe someone who could use a few bucks? Personally, I see the service being worth a thousand dollars or so in the short run. Is this unreasonable on my part? Am I being too cheap? Whatâs this kind of options help worth? Somebody please raise your hands, text me, email me, PM me, help me, Iâll pay.
Fu*kers
Quote from austinp:
<i>Underlying - AAPL
Bias - Bullish
Time frame: 2-3 weeks.
<b>AAPL</b>
Short Jan 195 put (APV-NS) closing bid price 12.80
Long Jan 185 put (APV-NQ) closing ask price 8.85
Net credit $4.00
Average share price: 195 less 4 = 191.00
*
(stating the obvious)
You would own AAPL at $191 per share basis if it closes at/above $195 Jan expiry. Exercise 195 short option at/after expiry to be net-long stock at 191 basis.
Downside risk: price trades below 195 before/at expiry. You then risk early assignment of short put, +4pt credit becomes a -6pt net debit.
Early assignment while position moves against you below 195 could increase that loss if price action rises after assignment but before long put option (185) is offset.
At -$1,500 max loss risk, two credit spreads would be roughly
-$1,200 risk and three would be roughly -$1,800 risk but could vary due to american style shorts.
Disclaimer: educational purposes only... hope this helps
Merry Christmas = Happy Holiday
Austin,you lost me on the residual risk should AAPL trade below 195..I fully understand the assignment on the short put,which would lead to apx 3-4 weeks of carrying cost worst case scenario.Is that what you are refeering to??The carry?
I did not read all responses, but I read some. RE calendar spreads, a call calendar is the same as the put calendar. Check it out by running some numbers. Reason: intrinstic value disappears in a spread. If you buy a time spread, you but longer term extrinsic value and sell shorter term time value.
If you do it with puts, the % returns are higher (because of cost of carry effect). So put calendars are preferable. But if puts are deep in the money, bid-ask spreads can be issue and there is also the risk of exercise on the short put. In such cases, use call time spread.
Old School: PM me if you wish. I think speaking about option is way easier than learning about it in a book. You run a business, and you should think about it as a business. So, you need to split portfolio into specs and income (20%, 70%, rest cash). Stocks are not good for the income part. Index are better, and the calmer the index is the better.
For specs, think like a spiner hiding behind a tree. You spend a lot of time waiting, and when the target is in your spot, you shoot for the kill. The income part is like old money waiting for checks every month to cash.
There are a set of tools for each part. Once you understand this, and option fundamentals, the rest as they say is details...
I love options.
PM me if you wish
If you do it with puts, the % returns are higher (because of cost of carry effect). So put calendars are preferable. But if puts are deep in the money, bid-ask spreads can be issue and there is also the risk of exercise on the short put. In such cases, use call time spread.
Old School: PM me if you wish. I think speaking about option is way easier than learning about it in a book. You run a business, and you should think about it as a business. So, you need to split portfolio into specs and income (20%, 70%, rest cash). Stocks are not good for the income part. Index are better, and the calmer the index is the better.
For specs, think like a spiner hiding behind a tree. You spend a lot of time waiting, and when the target is in your spot, you shoot for the kill. The income part is like old money waiting for checks every month to cash.
There are a set of tools for each part. Once you understand this, and option fundamentals, the rest as they say is details...
I love options.
PM me if you wish