The "haves" and the have "N.O.T.S." (Novice Options Traders)

Quote from ElectricSavant:

Current open positions:
1.Long VCQAM QQQQ Jan7 39 Call (Bought on 1/31/06 at 5.80, Target
6.20, Stop 2.80)
More...
Let's get back to the topic...

Let's analyze this trade:

1. What do you think about the entry? (in terms of timing, strike, expiration, IV, strategy, etc. ?)

2. What do you think about the profit target?

3. What do you think about the stop?

4. Anything you would like to add to the trading plan? any contingencies?

NOTE: I know anytime you ask for opinion in a forum, you are sure to get it. If you are of median intelligence, 50% of the responses will look intelligent, and 50% of the responses will look stupid. Such as life. If your intelligence is in the top 10 percentile, please do not get upset about 90% of the responses which might look stupid to you.
 
I do not have this position. I somehow did not trade it because I think at the time I had such a low balance, that I only was trading the more conservative portion of the advisory in the QQQQ spreads.

But it seems like an awefully long hold time...

For me picking a direction would be key to this position. I think I prefer to trade volatility...But I am not sure what kind of options trader I am...Being long with leverage in the Q's...for this long of a time, simply means to me that they do not want to get out with a loss and have a very loose stop and they rolled it over...

I should probably look at a chart...or some greek things I guess...

Michael B.


Quote from WD40:

Let's get back to the topic...

Let's analyze this trade:

1. What do you think about the entry? (in terms of timing, strike, expiration, IV, strategy, etc. ?)

2. What do you think about the profit target?

3. What do you think about the stop?

4. Anything you would like to add to the trading plan? any contingencies?

NOTE: I know anytime you ask for opinion in a forum, you are sure to get it. If you are of median intelligence, 50% of the responses will look intelligent, and 50% of the responses will look stupid. Such as life. If your intelligence is in the top 10 percentile, please do not get upset about 90% of the responses which might look stupid to you.
More...
 
So the benefit to risk ratio is upside down...? These price of options are greek to me...they do not correlate with the price quote of the Q's...how do you correlate them?


Quote from artis74:

I question a target px and the stop loss. Do you know why? What is wrong with the ratio between the two?
More...
 
I dont want to hop in on something but you need to think this out. These are some rel. basic concepts that should look look very bad to you as soon as you look at it regardless of the traade and/ or market. Get the vols lined up (hist v. imp), a prudent stop and start from there. Have a good one.
 
How about short little one or two line posts here?...so I can retain some info? Do you know how many other viewers that are not posting that would benefit from this?

...or should we turn this thread into a book recommendation list?

I will get to the books after this thread...I have a list.

Michael B.

P.S. There are currently 1,565 views on this 12 page thread...a lot of lurkers...am I the only one willing to admit that I know nothing about options...I want to read some of Lawrence McMillans books to get specific trading idea's.

P.P.S. The nitty gritty of fundemental terms and formula's should not require a book list...options should not and are not that complex...shoot i memorized some fundementals for my series three...and did not even understand them...lol...but I am sure there could be some SHORT posts to explain these simple tools...


Quote from artis74:

Start read the Natenberg Book on Option Pricing. Then Dynamic Hedging by Taleb to get into some nitty gritty. Its a start.
More...
 
?

I already stated that the target is very close compared to the stop.

What is this jibberish below in bold? do I need to get a book for that too? or do you confuse to impress?

by the way... do not try to match Iq's. Lets just learn together...You teach I will listen :)



Get the vols lined up (hist v. imp),
 
white17,

Look lets not highlight this...this is not Monday night at the fights ok? I am here to illustrate some trade calls and learn...

Coolweb is kewl guy...nothing wrong with him...he jumps on threads and does these things...which is alright with me...

I use a third party for the calls to avoid flames...plus I would not know how to enter an option if my life depended on it...I can't even read the symbols...

I swear someday I will be able to read riskarb and mav and understand them...but I think I will learn the most from optionscoach as he seems to speak the same language :)

riskarb just makes money....he is a machine. ET has suffered a huge loss by banning him...

Michael B.


Quote from white17:

Great response !
More...
 
You must log in or register to reply here.
Back
Top