Option

Quote from iceman1:

you deleted your post about "loss"??? But you "made money" today since the bid is now .40 cents not .45.

SO actually you should view that decision with +++ for many reasons... regardless of what tomorrow brings!

regards,

IcE
:cool:

SEVENTY degrees in Chicago tomorrow.... floor traders will be HAPPY!
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Yeah, I'm happy that I made that decision. And I learned about options in the process. They are wild beasts and next time I'll proceed with more caution. Next time I'll know more about what I'm doing.

I don't know what loss post you're refering to but yeah, I took a loss-- I did sell my coontracts at .45, and in doing so I managed my risk.
 
Quote from wwatson1:

I found the time decay and the fact that you have to predict the movement of the underlying when buying options led me to very inconsistent profits.

When I started selling options profits where consistent and steady.

I have sold deep out of the money options where the underlying stock gaped against me 40% and still came out of the position with only a small loss.
:)
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I need to learn more about options before I begin to plan strategies of writing them.
 
copa8 I have been selling naked calls and puts don't see the need for credit spreads.

Because I am trading options on volitile stocks I have had a few positions gap and trade strongly against me and still been fine.
 
Quote from rowenwood:

I need to learn more about options before I begin to plan strategies of writing them.
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Quote from rowenwood:

50% of my portfolio value in LU May $4 Calls bought at .57

Because I'm up 15% since April I figure I can take this risk against my recent profit.

My next buy, using the other 50% of my portfolio will be to gain more LU May $4 Calls. I will make this purchase when and if the SPX breaks the 1150 resistance.
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I realize you don't like me and you'll probably flame me for posting something so "worthless".

But, I think you need to learn more about Money Management and Risk Control, too.

You'll find few if any pro traders who would recommend allocating 50% of your account on one idea.
 
Quote from iceman1:

Didn't you say that you would 'sell' the calls if they went to .45. What's the current bid??? So is it "self-control", or lack of discipline? Why have a plan that you don't honor?

Just offering my 2c since you publicized your position; therefore you must be looking for feedback!

IcE
:cool:
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===============

Rowenwood;

I used to feel disappointed when i cut a loss;
now i actually feel relieved because ANYTHING PAST MY PLANNED STOP LOSS IS A
STINKING
UNEEDED
BUSINESS EXPENSE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NO I DIDNT buy any calls;
taken enough losses in stock options to be
real , real careful
know by costly experience that many buyers get in too much hurray.



DIA, SPY-SPX , QQQ , LU are still nicely uptrending ,including 50 DMA;
cant say that for thier options.
 
Quote from SumJurk:

I realize you don't like me and you'll probably flame me for posting something so "worthless".

But, I think you need to learn more about Money Management and Risk Control, too.

You'll find few if any pro traders who would recommend allocating 50% of your account on one idea.
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No, it's alright. Your first response seemed like it was intended to annoy me instead of educate me. I felt annoyed and called you a jerk jokingly. I think you're probably right about risk management, and you could probably accurately recomend I learn about any one part of market analysis or economics in general.

But I did sell at the price I initially set out to accoring to my risk management scheme. And I've never done that (50% call allocation) before and I'd never do that with a lot of money. I only did it because I thought it was a sure thing.


So is there a book on the subject of rm that you reccomend I begin with?
 
Quote from murray t turtle:

===============

Rowenwood;

I used to feel disappointed when i cut a loss;
now i actually feel relieved because ANYTHING PAST MY PLANNED STOP LOSS IS A
STINKING
UNEEDED
BUSINESS EXPENSE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NO I DIDNT buy any calls;
taken enough losses in stock options to be
real , real careful
know by costly experience that many buyers get in too much hurray.



DIA, SPY-SPX , QQQ , LU are still nicely uptrending ,including 50 DMA;
cant say that for thier options.
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I'm glad for that loss, I learn more from losses than from wins. Doing what I did with 5,000 will resrict me from doing something as agressive with 100,000.


Got that lesson out of the way. Yeah, I like yor idea of thinking of it as a business expense. lol
 
Quote from rowenwood:

No, it's alright. Your first response seemed like it was intended to annoy me instead of educate me. I felt annoyed and called you a jerk jokingly.


So is there a book on the subject of rm that you reccomend I begin with?
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That's cool...in a way I can't blame you for being on the defensive. This board is plagued with flamers. God help me if I should ever say something that's not true...lol

Probably the three books that I got the most education about money management and risk control were the wizard books. If you haven't read these books, they are a must...imho

Market Wizards

New Market Wizards

Stock Market Wizards

Cheers...:)
 
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