The Novice Stock Options Investor

I got filled on my GLD Put and AAPL Put. They are already making a profit. Trading account is recovering from friday's pull back. Overall the market is bullish. I'm expecting it to remain sideways and most likely trade down. I put in some long positions, but also some bearish put positions as well.

Here are my trade set ups for tomorrow.

LVS
Limit Long DEC 50 Calls for 2.75
Limit Close DEC 60 Call for 0.50

GLD
Limit NOV 130 Call for 3.05
Limit NOV 130 Call for 3.55
Lmit Close 135 Put for 2.99

WYNN
Limit NOV 115 Put for 3.45

F
Limit NOV 15 Call 1.925
 
bought some GLD Puts on the lows of the day, so I'm stuck with this straddle. Ahhh. I've made some adjustments that cost me some profits. Fucking A! If I had just went to work my account would've done better.
 
Not much of a loss today, but a lot mental stress. I will say that my patience has improved, however I was a bit agitated. I need to figure out to blend how I trade at EOD and how I trade intraday.

Tonight I will be doing a recap of my open positions and a tall of my win/loss %. A part of me is mentally tired that maybe I shouldn't trade tommorow, however that makes no sense.

I need to go back to making some solid plans for my trades, because lately I haven't been. In the last 16 days of the month I've had 51 fills or 51 trades. That's a lot for me.

P/L for the year is $2063.92

For the year I'm up 58% ROI for the year, however, I'm down from 92% ROI high for the year. I'm learning how to trade a bearish market.
 
Just my opinion, but I think the key to successful options trading is to become as non-directionally oriented as possible, as diversified as possible, and to trade volatility instead of price. Not saying these are the best or only ways to trade options, just that these techniques might help you to avoid the stress you have been feeling with many of your trades.

Best of luck to you!
 
Quote from HFStartup:

Just my opinion, but I think the key to successful options trading is to become as non-directionally oriented as possible, as diversified as possible, and to trade volatility instead of price. Not saying these are the best or only ways to trade options, just that these techniques might help you to avoid the stress you have been feeling with many of your trades.

Best of luck to you!
More...

thank you for you comments HFStartup. Non-directional trading I really dislike. But I'm with you on the trading volatility.
 
GLD

I'm going to play a bounce off the 50 day sMA. It closed above it, but did "kiss" it intraday. I'll be closing out my puts at a loss (because I got in on the lows - bad timing) and hoping to minimize some of my loss by recovering a little bit on the calls. I will most likely increasing my stake in my longer term position on GLD.

LONG Limit 1.80 JAN 11 135-144-153 CALL butterfly explosion +2 / -4 / +4



AAPL

Profitable PUT on AAPL. It's hitting the lower BB so it will most likely bounce tomorrow. However, ADX DMI+/- are indicating to stay in the trade.
I'm possibly considering adding to this bearish position.

BIDU

ADX is point up, but it's much lower. With the adx being low the trend could change quickly. Today it pretty much filled the gap (almost) from the gap up from 10/22. Bidu would have to hit 102.78 to perfectly fill that gap. The hourly bars on 11/16 tell that there could be a solid floor right here. With the ADX being fairly low and those hourly candle there is a higher probability for a bounce from here. Or it could trade sideways for a few days and the lower BB will hit it and it will go up from there.


F

Not on our stock list, but it's a gamble on the hype of the GM IPO i know it doesn't really "fit" with in the parameters of our system here, but I will use it anyway since I have some call options on them. I admit it is a gamble.

The 10 sMA is in control. ADX, +DMI are falling as -DMI is rising. The hourly chart shows ADX falling pretty dramatcally and the -DMI point up and the +DMI pointing down.

The 10 sMA is 16.28, that would be a good stop. Something to notice is that on today's candle 11/16 the 11/15 gap was filled.

GOOG

Bearish candle today. 4th down day in a row. It's a bit oversold. It's trading outside the lower BB. ADX is above the -DMI ...which is also pointing upwards. +DMI is pointing downwards.

Hourly chart has it pretty much "hugging" the lower BB. It only makes sense for a bounce. But, what makes sense, doesn't always happen. I don't know how to read this chart, or how to give a probability to either direction. I'm stuck with my instincts:indicators are telling me it should continue to the downside, but I cant help but expect it to retrace a little bit before doing so.

LVS

Interesting read. I bought this before getting a better understanding of this forum. I bought a bullish position on LVS on 11/10, betting the 10 sMA would hold. On 11/11 I felt pretty smart because I had a small profit.

IN HINDSIGHT.ADX -DMI +DMI WERE ALL FALLING. Probably not a good idea to go long in the first place.

Right now -DMI is pointing upwards along with the ADX. Before learning this forum better I would bet on the a bounce off the 20 sMA, but I need to wait and have the INDICATORS tell me otherwise.
 
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