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Option trading for a newbie
- Thread starter Ben74
- Start date
Just found this journal.
Dead journal or just no positions??
Dead journal or just no positions??
Quote from TradinMadMan:
Just found this journal.
Dead journal or just no positions??
Sorry, I've been sick, caught strep.....I've made 3 trades last week. Bought 10 HPQ Feb. 35 calls at $1.40, bought 10 PCLN Feb. 75 calls at $0.80, and bought 10 BUCY Feb. 12.5 calls at $1.30.
I sold PCLN calls at $6, HPQ expired worthless, and sold BUCY calls at $2.00. Overall, took a loss of ($1,412.95) on HPQ, gain of $5,170.10 on PCLN calls and gain of $670.10 on BUCY calls. My gains for the week was $4,427.25. Have fun guys, and I will post more once I get better hopefully by next week.
My gains are now +$20,836.45 and account is now at $32,836.45. What a difference 2 months can make. At this rate, I'd love to reach $100,000.00 soon. My goal would be by December 2009.
Ben
So what are you doing, chasing earnings reports? On how many different companies?
Do you or any one else know what to do when you are trying to be delta neutral and the position gets out of balance? Do you adjust it according to which way the trend is going or what ? I just got slaughtered not knowing what to do and I did nothing. The time evaporated and ate the calls after the news this past week and the puts went up in value but nothing to help the position. I think I would be better off doing what Ben is doing!I'm sure this post belongs somewhere else but for this post could someone direct me. thanks and interesting journal.
Do you or any one else know what to do when you are trying to be delta neutral and the position gets out of balance? Do you adjust it according to which way the trend is going or what ? I just got slaughtered not knowing what to do and I did nothing. The time evaporated and ate the calls after the news this past week and the puts went up in value but nothing to help the position. I think I would be better off doing what Ben is doing!I'm sure this post belongs somewhere else but for this post could someone direct me. thanks and interesting journal.
Quote from wmb:
So what are you doing, chasing earnings reports? On how many different companies?
Do you or any one else know what to do when you are trying to be delta neutral and the position gets out of balance? Do you adjust it according to which way the trend is going or what ? I just got slaughtered not knowing what to do and I did nothing. The time evaporated and ate the calls after the news this past week and the puts went up in value but nothing to help the position. I think I would be better off doing what Ben is doing!I'm sure this post belongs somewhere else but for this post could someone direct me. thanks and interesting journal.
Expand a little like what type of option strategy did you use? I suspect you probably tried a basic straddle or strangle. You know, many option traders misunderstand the power of technical analysis and more intense research on the underlying stock. A have met a lot of option trader talking option strategy gibberish, and never make that big trade. My suggestion is instead of trying to take a delta neutral trade, why not adjust your money management, do some research on the underlying stock and then take advantage of the options taking a directional position.
looking good on both options.
Quote from traderyin:
Ben, what is the risk management method? When do you decide to get out of a losing trade?
My trading method is similar to you. I use less fancy strategy and use option as leverage tools.
Just plain on call or put strategy here too. I use about 5-10% per trade and usually get out the morning after earnings are reported.