Option trade idea on YHOO

Quote from hajimow:

I don't trade and leave. I do over 10,000 contracts a month. So just imagine trading about $500 contracts a day. Your assumption that I shorted at $16 and did nothing and came back today and I see I am making money is wrong. If you doubt, I can teach you how to trade in 3 weeks for only $20,000. You have to be with me 12 hours a day and after that you will learn how to trade. By the way if you slack one day or don't pay attention, I will fire you and take that 20K tution fee too. PM me if you are interested.
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ha.. good come back

kind of petty what goes online alot of times....just as much as there is no reason to lie.. theres no reason to make accusations.. just as there is nothing i'm getting out of this. this isn't constructive.

what i always say.. if it doesn't apply let it fly.. and what drives you metameta to even follow this in such detail?
 
he said he shorted 49,000 shares at a date and from where i'm looking that's down $120,000 in a month, maybe you make that in a week, i don't.

i just wanted to see how he hedged out of this.

i sometimes short spy while selling puts so it is similar to what i do from time to time, just wanted to see how a pro handles it.

i still don't know how he did it.

he says he pulled out $40,000 this past month in profit i'm lucky to do a quarter of that.
 
Quote from metameta:

he said he shorted 49,000 shares at a date and from where i'm looking that's down $120,000 in a month, maybe you make that in a week, i don't.

i just wanted to see how he hedged out of this.

i sometimes short spy while selling puts so it is similar to what i do from time to time, just wanted to see how a pro handles it.

i still don't know how he did it.

he says he pulled out $40,000 this past month in profit i'm lucky to do a quarter of that.
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so i hear you say your hating ? haha i'm sure if he was short a ton of calls.. he hedged with the underlying as the calls got more and more deltas.. it does show the purchase of shares of the underlying
 
yeah it shows purchases of shares today but he was short 49,000 before that (from his post over a month ago sub $16.60's now at $19). and to purchase so many deep in the money calls after the rise, just today?

it just looks like hedging a loser to stop the bleeding. he didn't show the complete picture, he doesn't have to i was just hoping for an explanation an amateur like myself would love to understand as a courtesy.

if he knew it was going up why not just go long 49,000 shares at the mid $16's when he said he was short all those shares?

that would have been just too easy i know but the "wow i'm short 49,000 shares and the stock has gone nothing but up but it's all part of my strategy of then selling puts to maximize my profit."

ok, i'm a hater now.

i just an amateur looking for an explanation.
 
Quote from metameta:

i trade almost exclusively options, if you can explain to me either here open on the forum or a pm i'd pay a tuition fee ($20,000 a little steep though).

but. come. on. if you shorted 49,000 shares and there is a price difference of $2.50 that has to be made up there. can you at least give me a hint, did you trade weeklies?

i don't disagree that YHOO should be headed the other direction but this trade just perplexes me. i wouldn't have been so interested but you are one of the few posters who show screen shots of your IB activity which i appreciate because you put you money where your mouth is but wow on this trade.

it's rare to find an option's day trader i usually pick a strike sell a put and wait 1-24 months and allow assignment since i only sell puts on stocks i want to own.

admire the activity though you're all over the place with today's trades.
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Just a simple example:
Lets say you short a stock at 16.30 and then you see it is going up. Then you sell weekly PUT 17 at 0.8 plus lots of PUT 15. Without PUT 15, you are safe up to 17.1. With PUTs 15, you will be safe like up to 17.20. Lets say stock goes to 17.10 next week. You make on PUTs 15, and 17 and then do it on PUT 17.50 and this way you increase your short price. Remember when you short 100 shares, you can short 2 times PUTs. Risk is equal to selling one PUT (think about it).
Another option is short the stock and close your account and come back after next month and then start to cry.

Read my previous posts o this thread. Once I recommended selling like 16 PUT for 2 cents which would make like 24% per year and I don't know who said that he would not take that trade becaue 24% is nothing !!!.

My time of losing money is over.17 years of heavy trading makes you trade and decide without thinking.
 
By the way who cares if I lose money in selling the shares short. Because of that short, I shorted Jan 17.5 PUT for 0.7 and covered today at 0.2. I sold Dec 17 PUT for 0.35 and covered today at 0.05. I sold 18.5 PUT yesterday at 12 cents and covered today at 5 cents and on and on and on. I was watching my account growing and growing.... The important factor is the net liquidation and not the individual loss or gain.
 
As a general rule, if someone tells me about a trade they made days after the fact, but not during the actual trading day, or soon after the close,.... then I tend to wonder why they are willing to share that trade days or weeks later, but not when they actually made it.

As a general rule, most everyone on the internet is an amazingly successful trader year after year.
And they are also handsome, sexy, brilliant, witty and charming.
Now, I know you all think I'm talking about me.
And I am. But that's just coincidence. I could be talking about anybody here.
But I'm not. I'm talking about me.
Nah, honestly, on a scale of 1 - 10,..... I'm barely even a "9".
Did I mention that I doubled my money last year?
Gosh I LOVE the internet!!!
 
your explaination of selling twice as many puts helps explain how it's possible plus selling weeklies.

it's just a lot of mechanical work the way you are trading but if its working for you i wouldn't stop.

so could you provide a ballpark on your net profit on just the YHOO trade this last 30 days.

appreciate the responses so far.
 
Quote from metameta:

your explaination of selling twice as many puts helps explain how it's possible plus selling weeklies.

it's just a lot of mechanical work the way you are trading but if its working for you i wouldn't stop.

so could you provide a ballpark on your net profit on just the YHOO trade this last 30 days.

appreciate the responses so far.
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Was not that great because YHOO was going up. It was about 25000 in the last month. My TZA trades were much more profitable than YHOO in the same time period.
 
Its very simply a covered write strategy.. done right you become the dealer of these puts much like a market maker... adding a little directional intuition and correct hedging frequency it can have its up side... to stay neutral you have to keep shorting puts as the underlying rises.. your puts lose deltas and that's why he keeps selling the outs closer to the money as the underlying moves up... still plenty of risk .. your short vol... upside buyout would crush the position.. but with risk comes reward
 
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