Option trading for a newbie

Quote from Ben74:

Bought 10 GS Dec. 75 calls at $2.00 for ($2,015). Looking for some upside to earnings.
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Option trading can make you money in a hurry. And make you lose it even faster.

This seemed like a lottery ticket to me. Expensive, way OTM calls with not much time left. I haven't checked IV, but sure looks like it pumped up big before earns, and now has dumped. With GS up about $3 right now, the calls have lost .60 and are at .80 now.

Some lessons I have learned, is that trades like this aren't worth it. Yeah you will win some, but most of the time you lose. So my question is, can you trade stocks or futures with short term trades and consistently make money? If you can't, I doubt you will get far with ops.

Good luck and good trading to all. :cool:
 
Quote from Ben74:

In addition to the GS trade, also bought 5 FDS Dec. 35 calls at $1.95 for ($989.95).
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Congrats. You nailed that one! Looks like 4.20 X 4.60 right now.

But still...is it a profitable "system" over time? I hope so.


update:
Wow. GS is really moving now. The Dec 75s are up to about $1.50.

You may be alright yet! Good luck.
 
Quote from Wayne Gibbous:

Congrats. You nailed that one! Looks like 4.20 X 4.60 right now.

But still...is it a profitable "system" over time? I hope so.


update:
Wow. GS is really moving now. The Dec 75s are up to about $1.50.

You may be alright yet! Good luck.
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yep, sold 5 FDS at $4.20 for a gain of $1095.10. Still holding my 10 GS calls, I think it can move above $2.00.

My account is now at $14,337.30 without the GS gain/loss. I've gained $2,337.30 since trading again the past 2 weeks. I started with $10,000 it dropped to $7900. deposited more money and started with $12000 at the beginning of December. So I'm up marginally overall after losing -$2100.
 
Quote from Ben74:

yep, sold 5 FDS at $4.20 for a gain of $1095.10. Still holding my 10 GS calls, I think it can move above $2.00.

My account is now at $14,337.30 without the GS gain/loss. I've gained $2,337.30 since trading again the past 2 weeks. I started with $10,000 it dropped to $7900. deposited more money and started with $12000 at the beginning of December. So I'm up marginally overall after losing -$2100.
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I think I saw those GS calls hit $2.30, so WTG!

I wouldn't stick around too long, tho. JMHO but I've always done better taking the quick profit. And with ops, those nice profits can go poof real fast.

Good trading to you. :cool:
 
Quote from Wayne Gibbous:

I think I saw those GS calls hit $2.30, so WTG!

I wouldn't stick around too long, tho. JMHO but I've always done better taking the quick profit. And with ops, those nice profits can go poof real fast.

Good trading to you. :cool:
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Thanks Wayne,

I did sell those GS calls, closing 10 at $2.65. My gains on that trade is $620. Account is now at $14,957.30 and I am all cash.
 
Quote from Ben74:

Thanks Wayne,

I did sell those GS calls, closing 10 at $2.65. My gains on that trade is $620. Account is now at $14,957.30 and I am all cash.
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Looks like you sold way too early!!! :D

Nah, just kidding. You did the right thing. Market could have dropped like a stone in seconds.

If anybody thinks the market will pop like this all the time then...they must believe in Goldilocks! :p

But for now, LET IT RIP!!!!
 
Quote from T-rexx:

Well I've got a platform from Tradeview Forex, and it's for trading vanilla options only. Core Options has happened great, and I also find it better for beginners.
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Please stop with your gay-ass spam.
 
Quote from Ben74:

I have OX, and they have a great platform, with option pricing calculations, very good charts, quotes, and a decent streamer. Comm. rates are $14.95 ($12.95 for active users) min. and beyond 10 contracts its $1.50 per contract ($1.25 for active users).
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Sounds good to me. Thanks for the info, I am currently downloading it and I'll give it a try, though I want to establish comparisons so I am also downloading the Core Options. I'll be coming up with some thoughts.
 
For today, bought 6 JOYG Dec. 22.5 calls at $1.60 for $974.95. Let's see if I can keep the run going. I believe JOYG is out with earnings tomorrow AM.
 
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