What is the best method to sell Options on low volume stocks?
- Thread starter JesseJamesFinn
- Start date
Yes, but according to the email, it's for equities options only. I haven't used it; most of my activity at OX is in retirement accounts - long term, infrequent transaction stuff.
Re futures and futures options at OX: Their rates are better than they used to be, but they're still quite high compared to others who serve the retail market. I believe they are currently $3.50 per side plus exchange fees, down from $7 or so (per side) a year ago. That's a big negative.
In the plus column, when it comes to the margin structure for short futures options, they're supposedly more friendly than IB. Like IB and TD Ameritrade (thinkorswim), they have a large, stable parent.
I haven't used OX for futures or futures options, other than a rare trade so I remember how to use their system if one of my other brokers is down. They're probably fine for someone who is getting going, but there are better deals out there. I'm not a ThinkorSwim customer, but I think they're at $2 or $2.25 per side (plus fees) and lots of people rave about their software.
Re futures and futures options at OX: Their rates are better than they used to be, but they're still quite high compared to others who serve the retail market. I believe they are currently $3.50 per side plus exchange fees, down from $7 or so (per side) a year ago. That's a big negative.
In the plus column, when it comes to the margin structure for short futures options, they're supposedly more friendly than IB. Like IB and TD Ameritrade (thinkorswim), they have a large, stable parent.
I haven't used OX for futures or futures options, other than a rare trade so I remember how to use their system if one of my other brokers is down. They're probably fine for someone who is getting going, but there are better deals out there. I'm not a ThinkorSwim customer, but I think they're at $2 or $2.25 per side (plus fees) and lots of people rave about their software.
Hey Jessie,
I've made some small change selling naked calls on biotech stocks from time to time. Usually, collecting Theta on strikes that expire before expected announcements. However, its a 24/7 undertaking and needllessly stressful. You wait 30 days to bank .80 cents or so then wake up one morning down $10.
You never know when a powerful short squeeze will come or big Pharma will just decide to buy the small biotech. Then, you gotta watch IBB ETF to see if a raging bull will lift all the boats.
My occasional losses, while big, is not as big as the volatilities would have implied. So you gotta balance it between the implied move potential and the crazy targets that analysts pull out of their magic eight ball.
Oh, you would think that broken biotech stories will just keep trending down, but remember that this makes them all the more determined to release a new "discovery". And, that will hurt big time for anyone on the short side. Would I sell puts? Heck no! I would not want to own those stocks even for my mother-in-law's account.
Same with small oil exploration firms. Doing that stuff does not make for an primary "income" strategy unless you have an advanced degree in Pharmacy or Geology/Petroleum engineering.
I've made some small change selling naked calls on biotech stocks from time to time. Usually, collecting Theta on strikes that expire before expected announcements. However, its a 24/7 undertaking and needllessly stressful. You wait 30 days to bank .80 cents or so then wake up one morning down $10.
You never know when a powerful short squeeze will come or big Pharma will just decide to buy the small biotech. Then, you gotta watch IBB ETF to see if a raging bull will lift all the boats.
My occasional losses, while big, is not as big as the volatilities would have implied. So you gotta balance it between the implied move potential and the crazy targets that analysts pull out of their magic eight ball.
Oh, you would think that broken biotech stories will just keep trending down, but remember that this makes them all the more determined to release a new "discovery". And, that will hurt big time for anyone on the short side. Would I sell puts? Heck no! I would not want to own those stocks even for my mother-in-law's account.
Same with small oil exploration firms. Doing that stuff does not make for an primary "income" strategy unless you have an advanced degree in Pharmacy or Geology/Petroleum engineering.
Just looked at the stock....it's not a 4$ stock. It's a 3.78$ stock down from 20$
Take the money.........and RUN
Take the money.........and RUN
actually on second look...I might see if I could get 1.85 for the Jan 2$. You get a nice profit and still have room to gain. Feb is pretty far out.
Bright, thank's for the info on the 'walking spread" on Options House, I am going to open a account with a feature like that one.
I will dump the ARIA CALLS on Monday, I agree this stock could get clobbered back to $2.00 quick and this was probably a combination of a Short Squeeze too. I will take the $1.80 or better!
Xandman, I watched too many Biotechs get destroyed, after RNA's bad news came out it was crazy how SRPT's stock went to $50, I have friends at UCSF dealing with muscular disease (ALS, PLS) and those drugs are too hard to get efficacy, I thought SRPT was going to plumment like RNA did, I took no action with my faith SRPT was a time-bomb, it feel just like the rest of the gang.
My reason for buying ARIA was their big cash balance and maybe they might get some type of limited approval, I am not biotech specialist. I was looking for a bounce once the tax-loss selling was done, I got that bounce of Friday, I will dump it on Monday, thank's again!
You all might want to keep a eye on CBOE, NDAQ and WDC, I bought some WDC January $75s for $3.00 a contract.
My options are focused on finding momentum plus 52 week highs with plenty of time now. BAC and MU keep showing some life, good luck and thank's everyone!
I will dump the ARIA CALLS on Monday, I agree this stock could get clobbered back to $2.00 quick and this was probably a combination of a Short Squeeze too. I will take the $1.80 or better!
Xandman, I watched too many Biotechs get destroyed, after RNA's bad news came out it was crazy how SRPT's stock went to $50, I have friends at UCSF dealing with muscular disease (ALS, PLS) and those drugs are too hard to get efficacy, I thought SRPT was going to plumment like RNA did, I took no action with my faith SRPT was a time-bomb, it feel just like the rest of the gang.
My reason for buying ARIA was their big cash balance and maybe they might get some type of limited approval, I am not biotech specialist. I was looking for a bounce once the tax-loss selling was done, I got that bounce of Friday, I will dump it on Monday, thank's again!
You all might want to keep a eye on CBOE, NDAQ and WDC, I bought some WDC January $75s for $3.00 a contract.
My options are focused on finding momentum plus 52 week highs with plenty of time now. BAC and MU keep showing some life, good luck and thank's everyone!
Looks like you do your research on your biotechs. Feel free to share your picks w/ me. 
I don't actively research them, but I do take a flyer and collect premium by going short calls once in a while. Like I said earlier, I only get theta in between announcements or quiet periods. Sudden crashes are a bonus.
I don't actively research them, but I do take a flyer and collect premium by going short calls once in a while. Like I said earlier, I only get theta in between announcements or quiet periods. Sudden crashes are a bonus.
Hi Jimmy,
With my KS Febuary Calls I am going to continue to hold them and might exercise them if she keeps on flying up. If you review the time-and-sales on Kapstone, you can see where I got with with the first of my contracts and it took later to hit other contracts above $4.50. The idiots refused to give me $8.00 on those November $45 Calls even when Kapstone had prints of $53..07. Thank's for the idea of exercising the stock option, it's cheaper if I can get them to pay me a decent price on my Febuary Calls, I want $9 to $10.00 now. I mentioned I bought some calls on various stocks, do you guys ever post your option trades online? I can post my option trades if it might help you figure out where I am blowing it by allowing the underlying stock price to fall and I get left holding the bag.
Brighton:
I opened a account with Options Express last night, if you have a name you want me to add as you getting me started there and get a referral reward, let me know how I can add you to Options Express, the commissions are not cheap but that program looks good and might make up for the commission structure. I pay different prices at different brokers. Do you have a account with Options Express, because they just got themselves a hyper-active trader and you deserve the credit.
3.0 Here's the ticket for the options I bought in my wife's IRA, no need to post my IRA or my son's IRA on this trade, you all get the point.
"Trade date: 10/31/2013
Settlement date: 11/01/2013
Security: ARIA Feb 22 '14 $2 Call
Quantity: 11
Price: $0.70
Commission & Fees: $14.69
Amount: $784.86
Description: 11 ARIA Feb 22 '14 $2 Call"
"Fri Nov 22 13:32:41 2013 Sell 11 ARIA Feb 22 '14 $2 Call Cancelled
Account: xxxx-7777 Your GTC Sell to close order for 11 ARIA Feb 22 '14 $2 Call at a limit price of $2.9 was cancelled See order # 14563 for details.
With my KS Febuary Calls I am going to continue to hold them and might exercise them if she keeps on flying up. If you review the time-and-sales on Kapstone, you can see where I got with with the first of my contracts and it took later to hit other contracts above $4.50. The idiots refused to give me $8.00 on those November $45 Calls even when Kapstone had prints of $53..07. Thank's for the idea of exercising the stock option, it's cheaper if I can get them to pay me a decent price on my Febuary Calls, I want $9 to $10.00 now. I mentioned I bought some calls on various stocks, do you guys ever post your option trades online? I can post my option trades if it might help you figure out where I am blowing it by allowing the underlying stock price to fall and I get left holding the bag.
Brighton:
I opened a account with Options Express last night, if you have a name you want me to add as you getting me started there and get a referral reward, let me know how I can add you to Options Express, the commissions are not cheap but that program looks good and might make up for the commission structure. I pay different prices at different brokers. Do you have a account with Options Express, because they just got themselves a hyper-active trader and you deserve the credit.
3.0 Here's the ticket for the options I bought in my wife's IRA, no need to post my IRA or my son's IRA on this trade, you all get the point.
"Trade date: 10/31/2013
Settlement date: 11/01/2013
Security: ARIA Feb 22 '14 $2 Call
Quantity: 11
Price: $0.70
Commission & Fees: $14.69
Amount: $784.86
Description: 11 ARIA Feb 22 '14 $2 Call"
"Fri Nov 22 13:32:41 2013 Sell 11 ARIA Feb 22 '14 $2 Call Cancelled
Account: xxxx-7777 Your GTC Sell to close order for 11 ARIA Feb 22 '14 $2 Call at a limit price of $2.9 was cancelled See order # 14563 for details.