Option trading for a newbie

B

Ben74

Just starting options, and posting my notes here so I can compare and see if I can match the big boys trades.

Starting with $10,000 account using OX.

I started with a 2 GOOG October 390 calls (.GOPJR) bought at $3.20 for ($654.95).

I thought about selling it yesterday before the close for about $6-$8, but didn't pull the trigger. Maybe I should have done it.
 
IMO you gambled on GOOG risking 7% of your capital on one day of time value. Now you may get lucky and make some $$ today, but you need to understand that money management is the key to staying alive. That $6-$8 in premium may be evaporated depending on where GOOG opens. Just my opinion. There are times when a risky trade is waranted, but as your first trade I don't think it was a wise one even if it turn a profit.
 
I bought 5 more goog oct 390 calls at $0.60 just minutes ago. That's an additional ($314.95). The question is will goog rebound. time to pray.
 
Quote from Ben74:

I bought 5 more goog oct 390 calls at $0.60 just minutes ago. That's an additional ($314.95). The question is will goog rebound. time to pray.
More...

Praying is rarely a good trading strategy.
 
Bought another 10 goog 390 calls at $0.50 this time for cost of ($515).

Still hoping goog hit $287-$290 before 1PM EST.
 
Looks like you are averaging down...

paul-tudor-jones-thumb.jpg
 
I bought another 10 goog oct. 390 calls at $0.70 for ($715). I doubt the casinos are giving this much money out on jackpots.

edit: updating, I have a total of 27 GOOG October 390 calls for a net cost of ($2,199.90).

I'll update on a closing price later, don't plan on excercising of course.

edit again: My AMZN November 60 calls were just opened at $3.60. Didn't think I'd get my limit price, but got it, so I have 10 AMZN November 60 calls at $3.60 for cost of ($3615).

Have over $5500 invested or speculated, however anyone wants to put it.
 
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