If indeed you always get the hell out quickly when things don't go as expected you should do well. That is the most important thing.
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Question about futures.
- Thread starter IShopAtPublix
- Start date
If indeed you always get the hell out quickly when things don't go as expected you should do well. That is the most important thing.
Quote from IShopAtPublix:
Depends on starting capital. I don't have a lot of money to trade (usually like 1 grand at the beginning of the month from the previous month) and I have to create something out of nothing and make money to cover my living expenses and live another day. That situation creates a lot of stress. If a stock wastes my time doing nothing for a week it is a catastrophe. In essence, I have roughly 20 trading days to quadruple my money and that does not increase my capital at all. If I had 100K I would be in 7-8 figures a long time ago.
ahahhaa...thanks for the laugh...
I shudder to think of how you can have any knowledge whatsoever of options based on the zero knowledge you have about futures...
Options are derivatives of futures, and thus much more complex..
Take your $1000 and go to Vegas and build up a reasonable grubstake...
This thread is hilarious...
Publix sucks BTW
Quote from PohPoh:
ahahhaa...thanks for the laugh...
I shudder to think of how you can have any knowledge whatsoever of options based on the zero knowledge you have about futures...
Options are derivatives of futures, and thus much more complex..
Take your $1000 and go to Vegas and build up a reasonable grubstake...
This thread is hilarious...
Publix sucks BTW
Options on stocks and futures are totally different animals. There are VERY many brokers that offer only stocks(margin trading), bonds, options but not futures or forex. Those are separate animals. It is not only the inherent leverage of the derivative that matters the volatility of the underlying instrument matters even more. 100:1 margin won't help you when the underlying instrument won't move decisively. With stocks, moving 30% in one week or even less than that is far from rare so options provide bigger profit potential (as well as risk).
Well I took a position in BRS at 25 november puts on Monday this I show you the profit and loss towards the end of this week and it may shut you up.
This I do not understand. Options do not necessarily move in tandem with their underlying. There is something called implied volatility that can implode or explode. I have only traded options successfully for gains of 100% on trending stocks up or down when they made a move beyond their trends -none of this in the last 3 or 4 months-. And only ITM and after successful retest of their resistance level becoming support.Quote from IShopAtPublix:
Very simple. I track a group of stocks (no more than 20-30)expecting them to produce certain formations. Once they confirm expected behavior (beginning perceived trend reversal) I go in at a predetermined point and have a predetermined exit point. Then I track what happens to them (but not the whole day) If I feel they are not moving as desired I get the hell out.
Excuse my impertinence, but your strategy sounds like an accident waiting to happen. I wish you good luck.
Quote from rros:
This I do not understand. Options do not necessarily move in tandem with their underlying. There is something called implied volatility that can implode or explode. I have only traded options successfully for gains of 100% on trending stocks up or down when they made a move beyond their trends -none of this in the last 3 or 4 months-. And only ITM and after successful retest of their resistance level becoming support.
Excuse my impertinence, but your strategy sounds like an accident waiting to happen. I wish you good luck.
Any self-respecting broker provides "the greeks". Not buying overpriced options is assumed. And no my strategy is not an accident waiting to happen.
One more thing for mr rros:
http://www.investopedia.com/articles/optioninvestor/05/020205.asp
It says long puts at market tops are "CHEAP". I only buy puts and fade the market so implied volatility is a non-issue for me altogether.
http://www.investopedia.com/articles/optioninvestor/05/020205.asp
It says long puts at market tops are "CHEAP". I only buy puts and fade the market so implied volatility is a non-issue for me altogether.
Most of the time you may be right with this strategy. But the danger is that you may end up thinking there is a direct relationship between "market tops" and puts being cheap. This is not always the case. Neither the opposite is -for cheap calls at market bottoms-, provided I understood what you just said. Market Makers set prices according to specific criteria unknown to you. There may be news coming, there may be events coming, there maybe a miriad of things that in their judgment will affect the future prices for a stock, up or down. Not to mention the all-important rate of change in pricing history. All this criteria -some inferred mathematically- could be a little arbitrary and is being reflected in the price of the option as the implied volatility.
In the last week or so, CHKs slight OTM calls were outrageously attractive as premium goes. But this wasn't the case for all the other stocks within the same group. So generalizing a theory will work until it stops working. Your level of expertise may be much higher than mine though, and I may be mistaken.
In the last week or so, CHKs slight OTM calls were outrageously attractive as premium goes. But this wasn't the case for all the other stocks within the same group. So generalizing a theory will work until it stops working. Your level of expertise may be much higher than mine though, and I may be mistaken.