Why Is The Obvious Not So Obvious?

[bogan22]

Quote from The Oracle:

she is carrying 5 actually..one for each member of TFF..as we all like to share

as for options..main diff with european is no assignment until expiry..handy if u are selling options to take in premium..but selling can be a lot more risky..so u have to cover ur risk by limiting ur profit potential..like all trading..different times call for different strategies..use the one that has the most likely chance of big profit for small risk..if it looks that way..if not..then just go for bread and butter trading..and wait until the big chances present themselves..as they will..that is for sure..or better again..use both..but be careful not to overtrade and risk too much..as the outcome can be determined by one simple news statement

TO

It seems to me, as far as I can discern, you use the same strategy accross all markets, but vary the tactics and instruments used. Or, am I still not warm...

Grooves are often mentioned, tick tock.

Story Musgrave, I'd not heard of this guy before, thanks for the heads up.

Cheers
Bogan22

 

[mekanikal]

Quote from The Oracle:

she is carrying 5 actually..one for each member of TFF..as we all like to share

as for options..main diff with european is no assignment until expiry..handy if u are selling options to take in premium..but selling can be a lot more risky..so u have to cover ur risk by limiting ur profit potential..like all trading..different times call for different strategies..use the one that has the most likely chance of big profit for small risk..if it looks that way..if not..then just go for bread and butter trading..and wait until the big chances present themselves..as they will..that is for sure..or better again..use both..but be careful not to overtrade and risk too much..as the outcome can be determined by one simple news statement

TO

Yes, the assignment difference I knew about - not the settlement price . Remembering my days of options buying/selling, assignment was never really my concern. An OTM assignment doesn't happen (if it does, some idiot just gave you free premium). An ITM assignment can happen (and happened to me) but that just says bad trade management! Even then you get some premium early and then turn around, cover, and sell more premium

Some risk can be managed by way of spreads (vertical or calendar). In fact one of my strategy was to buy OTM leaps on a good but slow moving stock and sell front month ATM options against it. A good slow accumulation of premium and you roll it all forward or backward if the underlying moves substantially. But that was still a lot of headache and not much reward for my taste.

Now that you have opened my eyes some more - esp risk management, I see that you can trade whatever market as long as you are in control of #1

Reflecting back I already see lots of errors I made (combined with my stubbornness and not having clear targets).

Now I want to try the bread and butter trading. I really like the idea of going flat by EOD (or mostly flat). No overnight risk and Angela throwing a bucket of cold water after serving too many beers

Small steps first.
Famous quote - "A journey of a thousand miles begins with a single step."

 

[mekanikal]

Quote from The Oracle:

do not close ur TDA account..keep it open with minimum requirement..u might want to trade 5K shares in the future..and IB are too expensive for that size..so..never put all ur eggs in one basket

also..with TDA u get full quotetracker access free..which is very good software for daytrading stocks..it has some good things that u will not find easily on the likes of ninjatrader..and other highly priced platforms..as well as having a very user friendly options screen for US stocks..but u know this already

TO

Good advice TO! In fact few days back I noticed some low ADR stocks which are mostly slow moving, heavy volume dinos (for e.g. GE) held by dumb money! The thought crossed my mind that even if they offer low ADR, you can still trade higher number of shares for lets say 20 cents with 5 cents stop loss if they are easy and predictable. Is that what you are alluding to

I mostly use their ThinkOrSwim platform which TDA is pushing heavily since they aquired them. It's a one stop shop for everything - any instrument, charting, scanning, L2, active trader, news feed etc.

Haven't tried quotetracker but will keep TDA open just to have access to these tools!

Thanks!

 

[The Oracle]

Quote from Mysteron:

1. A long narrow furrow or channel.

 

[The Oracle]

Quote from bogan22:

It seems to me, as far as I can discern, you use the same strategy accross all markets, but vary the tactics and instruments used. Or, am I still not warm...

Grooves are often mentioned, tick tock.

Story Musgrave, I'd not heard of this guy before, thanks for the heads up.

Cheers
Bogan22

well B22..once the market has good liquidity..and the spreads are not TOOOOOOOOO wide..then the risk can be taken on..but must accept that the trade is a loser before u place it..then..if things go ur way the trade might just be profitable..like this one for instance..i will have to ask permission from TFF if i can post the chart

TO

 

[The Oracle]

Quote from mekanikal:

Yes, the assignment difference I knew about - not the settlement price . Remembering my days of options buying/selling, assignment was never really my concern. An OTM assignment doesn't happen (if it does, some idiot just gave you free premium). An ITM assignment can happen (and happened to me) but that just says bad trade management! Even then you get some premium early and then turn around, cover, and sell more premium

Some risk can be managed by way of spreads (vertical or calendar). In fact one of my strategy was to buy OTM leaps on a good but slow moving stock and sell front month ATM options against it. A good slow accumulation of premium and you roll it all forward or backward if the underlying moves substantially. But that was still a lot of headache and not much reward for my taste.

Now that you have opened my eyes some more - esp risk management, I see that you can trade whatever market as long as you are in control of #1

Reflecting back I already see lots of errors I made (combined with my stubbornness and not having clear targets).

Now I want to try the bread and butter trading. I really like the idea of going flat by EOD (or mostly flat). No overnight risk and Angela throwing a bucket of cold water after serving too many beers

Small steps first.
Famous quote - "A journey of a thousand miles begins with a single step."

going flat with shares or ftrs..yes..definitely..but with options..well..it all depends..as per mib trades..sometimes u just have to wait and see what will happen..but as u know ur risk is limited..even if the big BIG BLACK SWAN arrives..then even if u lose u are still able to trade away without the loss affecting ur way of thinking..for..if u start to leave losses fuk up ur mind..which i am sure u have experienced at some time ..that is the start of the slippery road to giving it all back..providing u have made it first..if not..then u might just end up losing ur hard earned cash..which is even worse

and yes..it is always wise to learn to crawl before u can walk

TO

 

[Zr1Trader]

Quote from The Oracle:

so make sure u learn how to become a good loser..the winners will then start to appear.. as surely as day turns to night

TO

Too many put 90% of their focus on trade identification and not enough on Risk/Trade/Money Management.


but then again what do I know

 

[mekanikal]

Quote from The Oracle:

well B22..once the market has good liquidity..and the spreads are not TOOOOOOOOO wide..then the risk can be taken on..but must accept that the trade is a loser before u place it..then..if things go ur way the trade might just be profitable..like this one for instance..i will have to ask permission from TFF if i can post the chart

TO

Hmmm now this has me stumped


So the only way that trade could have happened is if you sold puts on Friday after open and covered today after market open - i.e. the only times when this option traded at the price mentioned.

So you held not only overnight but over the WEEKEND a short put!!! Doesn't it carry the same risk as short future?

It looks the opposite of low risk/high reward to me.

Unless I am being a complete idiot and pulled the wrong chart

 

[The Oracle]

Quote from mekanikal:

Hmmm now this has me stumped

First of all the chart

So the only way that trade could have happened is if you sold puts on Friday after open and covered today after market open - i.e. the only times when this option traded at the price mentioned.

So you held not only overnight but over the WEEKEND a short put!!! Doesn't it carry the same risk as short future?

It looks the opposite of low risk/high reward to me.

Unless I am being a complete idiot and pulled the wrong chart

ML...

we know what u are up to..but TO does not mind..let me get permission first

 

[mekanikal]

I deleted the chart