Too good to be true?
- Thread starter frostengine
- Start date
OK, I'm putting down the crack pipe while posting. The idea was good, but the examples were pure crap.
So, let's try BABA Dec. 20 (2 weeks) 106/107 call debit for -.60 and a 116/117 call debit for -.10
(I'm using stale yahoo quotes from Friday, prices are approx midpoint. )
P/L -10% L=-.70, Unchanged (107.90) P=.+20, +10% P= +130 about the same as OP's trade.
This is what I get for posting on the run
EDIT: You could use the 107/108 call debit for better results given the criteria.
So, let's try BABA Dec. 20 (2 weeks) 106/107 call debit for -.60 and a 116/117 call debit for -.10
(I'm using stale yahoo quotes from Friday, prices are approx midpoint. )
P/L -10% L=-.70, Unchanged (107.90) P=.+20, +10% P= +130 about the same as OP's trade.
This is what I get for posting on the run
EDIT: You could use the 107/108 call debit for better results given the criteria.
I always cringe when I see people posting option trades with absolutely no mention of anything important. No implied vol, no measure of how high or low that vol is, no greeks mentioned, no management strategies, nothing. Just prices...
And people wonder why the vast majority of so called option traders lose money. It's because they aren't trading options at all. They are just speculating on prices of the underlying, and using options to do the speculating.
Recipe for disaster 0.02$
And people wonder why the vast majority of so called option traders lose money. It's because they aren't trading options at all. They are just speculating on prices of the underlying, and using options to do the speculating.
Recipe for disaster 0.02$
OK, I'm putting down the crack pipe while posting. The idea was good, but the examples were pure crap.
So, let's try BABA Dec. 20 (2 weeks) 106/107 call debit for -.60 and a 116/117 call debit for -.10
(I'm using stale yahoo quotes from Friday, prices are approx midpoint. )
P/L -10% L=-.70, Unchanged (107.90) P=.+20, +10% P= +130 about the same as OP's trade.
This is what I get for posting on the run
EDIT: You could use the 107/108 call debit for better results given the criteria.
What is the "actual" P/L after taking into account commissions and slippage ?
Sometime KISS is better, a pure debit spread will do the same job.
You do realize that this is a discussion based on the parameters posed in the OP? It is not an actual trade. What the realized prices (fills) and costs would be, depends on how the position is acquired(order entry).
Why don't you give an example, attaining similar P/L parameters, using a debit spread with two weeks to go.