Wealthy Option Traders

Quote from CandleStick77:

This may be a stupid question. But I don't have television so does anyone know of what website is best for upcoming earning announcements and earnings releases?
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Occasionally, web sites disagree so it's a good idea to check a few. I've used the following most often:

http://www.rightline.net/calendar/

http://www.briefing.com/GeneralContent/Investor/Active/ArticlePopup/PagePopup.aspx?PageId=3272

http://thestreet.ccbn.com/earning.asp?month=20091206&day=20091207&date=20091207&client=thestreet

http://online.wsj.com/mdc/public/page/markets_calendar.html

The first one, Rightline, is good for a quick look at several weeks in advance. There are plenty of them out there - I prefer Thestreet.com
 
Quote from TradinMadMan:

havent read the whole thread. keep in mind those with these tidbits of advice are speaking from their experience.

here's an elitetrader link. notice the similarity of comments presented to the threadstarter when he had a few losses. Suddenly the negativity ends. hardwork, but not difficult to figure out the criteria.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=141574&perpage=6&pagenumber=1
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As I recall Ben subscribed to a service that suggested option trades just before earnings. I found it surprising how accurate the calls were, considering that even if you have a strong feel for whether earnings will beat or miss, there's no way to predict how the market will respond, because the conference call often contains some scary or promising tidbit of info that can drive price in the opposite direction. The other issue with options pre-earnings is you're paying a fine premium and even if you're right on the direction, you can still lose money in some cases. That made Ben's success all the more surprising.
 
Quote from gkishot:

As long as it's acceptable by everybody and nobody is exempt.
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If acceptable by all was the metric for regulations and law, we'd be wearing pistols in holsters :)

Nothing is ever acceptable by everyone
 
Quote from spindr0:

If acceptable by all was the metric for regulations and law, we'd be wearing pistols in holsters :)

Nothing is ever acceptable by everyone
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What do you mean?
 
Quote from NoDoji:

As I recall Ben subscribed to a service that suggested option trades just before earnings. I found it surprising how accurate the calls were, considering that even if you have a strong feel for whether earnings will beat or miss, there's no way to predict how the market will respond, because the conference call often contains some scary or promising tidbit of info that can drive price in the opposite direction. The other issue with options pre-earnings is you're paying a fine premium and even if you're right on the direction, you can still lose money in some cases. That made Ben's success all the more surprising.
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Oh so true. Post EA IV contraction will eat you alive unless you're hitting a few home runs. If not then one should consider some variation that also involves sale of inflated premium in order offset the overpay.

How the market reacts can be a crap shoot. They can beat earnings handily but miss expectations by a penny and get clobbered. Always dance near the door :)
 
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Quote from spindr0:

If acceptable by all was the metric for regulations and law, we'd be wearing pistols in holsters

Nothing is ever acceptable by everyone
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Quote from gkishot:

What do you mean?
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If passage of regulations and laws had to be acceptable by everybody, we'd have none and we'd have to arm ourselves. All laws make some people unhappy.

Digressing, I have to believe that there's someone on the Senate Banking, Housing & Urban Affairs Committee that has the good sense to realize the damage a 1/4 % per trade fee will do.
 
Quote from my7tvette:

Candle, sorry to come off as a smartass. I was sincerely curious as to your "angle" with the original post. Actually, I think you will get much further here on ET if you are willing to come clean with your actual motivation and a little background, along with some specific questions, rather than just throwing out a general question seeking successful traders.

I am not a wealthy option trader, so my general trading advice to you is: be patient. always look at the risk of each trade, not just the reward. Don't put on too much size on any one trade, you need to be sure to have enough to trade again tomorrow. When you continually over-leverage, it doesn't matter how great your strategy is-eventually your chips will be swept away.

There are a few smart people here who have helped others learn. You just need to start asking the right questions.

Good luck.
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Your probably right maybe I did come off the wrong way asking that question. People can easily be misunderstood on forums. Ok so here is my backround on the market.


Have paper traded for over 2 years (Very very successful on paper) but my trades were extremely high risk (Front month options) and I know that I would be emotional trading with that tactic.

I have made a 380% return on google before (Trade got up to 480% I put stop loss in for 380% return) So I absolutely know that its possible. I have come down to a few conclusions for success on the market.


#1. Picking the right trade (The right stock)

#2. Picking the right option (The right strike)

#3. Timing of when to get in and when to get out.


Now I know there are thousands of variables to each of these. And I have been studying my ass off on a new approach to the market. Anyone here familiar with Wade Cook? Reguardless of the criticism he has received the man made a killing on the market. He took a fundamentalist approach to stocks with rumors of news and rumors of earnings. In application of certain times of the years when businesses have to realease information (SEC reports so on so forth) along with there taxes etc....


His conclusion came down to this. Wait for the right time of the year, Wait for the right stock, Wait for the right news on that stock. And with that opportunity you raise your chances for success to the highest rate possible. Now with ben, If you have a 2:1, or 3:1 risk ratio, 1 win will cover 2-3 losses. And if you win 90% of the time you will become wealthy.


The other part of his conclusion was to use $5,000-$10,000 of high risk money. With all your gains put it into a long-term portfolio to write covered calls on and do conservative strategies. Once you hit $25,000 in that portfolio, double your high risk account and get your account up to $10,000 to $15,000 until your long-term portfolio is up to $50,000-$75,000.


For my conclusion to what I am posting. I am a 24 year old male with alot of zeal. I know that it is possible and I also know that people have succeeded and done this. So I think to myself...... If I study hard, If I look for knowledge and gain advice and information from the people that are successful, Then I to can be successful. I believe anybody is capable of doing anything if they believe. So here I am. Now I am going to keep reading that book until I receive some replies. =)
 
Quote from luckybastard:

And the reason why only pro firms make money:

* Unlike you, they have big client orders, they can buy on the bid and sell the ask
* If an interesting bid gets placed in the public markets, their automated algo's on their colocated machines have hit it within a few MICRO seconds, even before your broker has transmitted the quote to you.
* Their transactional costs are WAY lower than yours, so they'll need less profit than you on the trade to end up net positive. Hence, quotes that are not interesting to you, might be to them.
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With a large firm:

Can you obtain greater leverage than a retail trader?
Are you trading with their or your money?
How much haircut does the firm take?
 
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