I think there are 2 options or to decide at what point I close the position and it has to be during high hours of trading when the spreads are tight to avoid losses or to do a vertical which is a bet of directional bet, but maybe it’s pissible to get an technical analysis to give me the idea where the market is going
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Options adjustment
- Thread starter met1989
- Start date
I'm gonna be blunt here. You appear to think there's some magical combination of options that will allow you to get more than the market risk adjusted return from a trade. And that there's plenty of folks who know about it (but mysteriously haven't arb'd the opportunity away) and are happy to share it with you. What you seek simply doesn't exist, on multiple levels. Take a finance class, there are some great free MOOCs out there. Until then, you're wasting your time and the time of those trying to help you, you simply don't know enough to even be able to ask intelligent questions or understand the answers you're getting. That's not a knock on you, we were all in that position at one point, just being brutally honest with you.I think there are 2 options or to decide at what point I close the position and it has to be during high hours of trading when the spreads are tight to avoid losses or to do a vertical which is a bet of directional bet, but maybe it’s pissible to get an technical analysis to give me the idea where the market is going
Thanks and if you were once at This position where did u start from ?I'm gonna be blunt here. You appear to think there's some magical combination of options that will allow you to get more than the market risk adjusted return from a trade. And that there's plenty of folks who know about it (but mysteriously haven't arb'd the opportunity away) and are happy to share it with you. What you seek simply doesn't exist, on multiple levels. Take a finance class, there are some great free MOOCs out there. Until then, you're wasting your time and the time of those trying to help you, you simply don't know enough to even be able to ask intelligent questions or understand the answers you're getting. That's not a knock on you, we were all in that position at one point, just being brutally honest with you.
I didn't truly grasp this until I took my first finance course for my MBA. But you don't need to do an MBA, you can just do one of the free online Finance 101 MOOCs, some of which are taught by world class professors at leading universities, and you'll have a great start.Thanks and if you were once at This position where did u start from ?
I’m looking for a way to adjust the weekly options on the Spx cause I don’t want to lose 1000$ for a trade that gives 200$ credit but I can’t see any way to adjust / stop loss / any ideas out there?
ES futures options have 50 multiplier, so half the notional value of SPX. It doesn't reduce risk, but might offer more flexibility for you.
SPY options are even smaller, if that matters. Personally, I think @Sig is right and the OP should do some reading before he takes the plunge.ES futures options have 50 multiplier, so half the notional value of SPX. It doesn't reduce risk, but might offer more flexibility for you.
I used to do option adjustments and think it made more sense when only monthly options were available and you only had 12 trades per year. Each trade was more important then. But with weekly options available and 52 trades per year, you might consider just taking a predetermined loss and moving on to the next trade. Usually, doing an adjustment involves locking in some level of loss and then adding new contracts and more margin in the hopes that the market will reverse to your favor. Sometimes things get even worse. No perfect answer here. You have to do what is comfortable for you and makes sense to you.
I wouldn’t adjust right away I wait and see how the stock is playing out and not run and adjust the second it hits the break even points and then would check how the pricing is at the time and of it doesn’t make sense close the position and if it does make sense adjust as I would prefer to win a trade the losing it yet if volitaliy is making it move sell fast !!!!!I used to do option adjustments and think it made more sense when only monthly options were available and you only had 12 trades per year. Each trade was more important then. But with weekly options available and 52 trades per year, you might consider just taking a predetermined loss and moving on to the next trade. Usually, doing an adjustment involves locking in some level of loss and then adding new contracts and more margin in the hopes that the market will reverse to your favor. Sometimes things get even worse. No perfect answer here. You have to do what is comfortable for you and makes sense to you.