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Let's Trade Options

Quoting Boy Wonder
{quote} TF, you could hedge yourself (lock in your profits) by going long EUR/USD. That's the problem with these ETFs...or whatever they are called. It's the same in the SPY, GLD, etc. etc. I won't trade them because the underlying (e.g. ES futures, GC futures, and in your case EUR/USD) trades 24 hr /day, and I'd want to be able to get in and out at a time of my choosing, not during the 6.5 hours of the day that the crappy lazy stock market is open.
can't hedge on some of the little accounts I have, no spot fx allowed in the IRA's. I hear you on the 24/7 thing, that's why I'm always on the lookout for US stock options to trade. EUO long calls I will get out of in the morning with a profit. Not as big as I had hoped prolly. E/U is a fickle little shit.
"If The Fool persists in his Folly he will become wise." - William Blake
Quoting The Fool
{quote} glad you stopped in homes, hope you'll be a regular. me I am pretty green and just mostly buy calls and puts, straddles sometimes. I will move on to more controlled strategies in time but just the simple stuff has been working for me pretty well. I hope we can get some good options traders to stop in - most of what I do be pretty boring for the pros.
Ya man Ill be in here... just keep the riff raff out of the room and it should be good in here

from what I find from the pros in options trading ( mainly one guy who worked for years as a options market maker for GS) just really base all their trading around volatility... it really determines every strategy when price gets in an actionable area

the only active trades i have now is that tlt cal spread I opened friday and some short May 42 puts on CBST

You use any sector rotation type stuff to narrow down your tradeable instruments?
Quoting Wulfgar
{quote} trading around volatility... it really determines every strategy when price gets in an actionable area the only active trades i have now is that tlt cal spread I opened friday and some short May 42 puts on CBST You use any sector rotation type stuff to narrow down your tradeable instruments?
lolz I had to google "sector rotation"...so, no. Volatility, tho, I always look for. However, I don't have a rigorous approach to trading volatility and that is definitely something I will be working on.

CBST looks good, like something I'd find & say "hmmmm." How did you get on that? I used to have Seattle friends in the Pharma biz and they were always trading hot pharma stock tips but in truth I lost more money than I made on those so I tend to steer clear of the whole patch now.

On the other hand a chart is a chart and if there's good liquidity no matter the underlying.

Right now I am in a little lull, just closing out lots of May18 buys I had. Thought about playing a June 21 straddle on something liquid. I guess straddles are considered a noob strategy but have never lost money on one. Maybe $4 AMD - just need about $0.70 one way or the other to make money there, and it has moved up $2 in the last month and $0.80 in the last 5 days.
"If The Fool persists in his Folly he will become wise." - William Blake
Quoting Cecil Gee
{quote} I'm considering buying some TLT call options on tomorrows MARKET opening, MAY 17 $119 CALLS fridays expiration. This all depends on price, i need to get them for around 25c or less . TLT has seen some strong selling lately so i'm looking for a short term bounce before the cycle of down action continues. TLT CLOSED AT $117.84 and the 119 call options closed for 31c below are the closing prices, if this moves towards my direction before the markets open I will void the trade, never chase iShares Barclays 20+ Year Treas Bond (TLT) -NYSEArca...

probably scratch this trade now pre markets indicating higher opening on TLT. the 119 call option should open higher with this, i see TLT may struggle at around 118.90 just short of the strike i wanted but the option should have more than doubled by that time.

see below of pre market price

i'll wait for another opportunity

iShares Barclays 20+ Year Treas Bond (TLT)

-NYSEArca

117.84 May 13, 4:00PM EDT|Pre-Market : 118.34 http://l.yimg.com/os/mit/media/m/bas...nt-1093278.png 0.50 (0.42%)
Quoting Cecil Gee
{quote} probably scratch this trade now pre markets indicating higher opening on TLT. the 119 call option should open higher with this, i see TLT may struggle at around 118.90 just short of the strike i wanted but the option should have more than doubled by that time. see below of pre market price i'll wait for another opportunity iShares Barclays 20+ Year Treas Bond (TLT) -NYSEArca 117.84 May 13, 4:00PM EDT|Pre-Market : 118.34 {image} 0.50 (0.42%)
pre market has dropped of a little now to 118.17, before i make final decision I'll wait to see the actual opening prices, if i can get the 119 call below 20c in the first 90 minutes of trading then i will buy, because of pre maeket activity i'm dropping my entry price lower just to limit my risk.

we shall see, below is the new pre- price

iShares Barclays 20+ Year Treas Bond (TLT)

-NYSEArca

117.84 May 13, 4:00PM EDT|Pre-Market : 118.17 http://l.yimg.com/os/mit/media/m/bas...nt-1093278.png 0.33 (0.28%) 8:13AM EDT - Nasdaq Real Time Price
Seeing USD strength premarket so I have a good sell on EUO, should get out with healthy profit. Last of my May 18 exp trades. Going to Vancouver in a minute, may not post too much next days. Good luck all options traders.
"If The Fool persists in his Folly he will become wise." - William Blake
looking to get into facebook @ 26.40

have a pending order to buy the stock there with a SL @ 25.60

then Ill just wind into a Sept 26/30 call spread

getting about 28 deltas with it... should be good for at least a 3:1

anyone else looking at this?
Quoting Wulfgar
looking to get into facebook @ 26.40 have a pending order to buy the stock there with a SL @ 25.60 then Ill just wind into a Sept 26/30 call spread getting about 28 deltas with it... should be good for at least a 3:1 anyone else looking at this?
over my head. I have been watching FB, though, think there's good upside there, long term.

I prolly won't get into anything new til next Monday, need the weekend to study. I wouldn't kick 3:1 outta bed tho.
"If The Fool persists in his Folly he will become wise." - William Blake
Quoting The Fool
{quote} over my head. I have been watching FB, though, think there's good upside there, long term. I prolly won't get into anything new til next Monday, need the weekend to study. I wouldn't kick 3:1 outta bed tho.
If you ever do any sort of debit spread its always best to use stock to get into the trade... then wind into the position after.... saves getting crappy fills during high volatility times like market opens

just basic delta neutralization

take the deltas of your spread, your total $ risk for your trade, and the size of the zone( so in my case 28 deltas, $500 risk, .80 zone)

use the % delta of the zone( ie 28% of .80= 0.224(round up so $23)

total risk/ (%delta*zone size)= 500/(23)= 21.73( round up to 22....this gives you the number of spreads for your risk)

to find how much stock you need just do the spreads(22) * total deltas(28)= 616 shares of FB

so I have a buy limit of 616 shares of FB @ 26.40.... and with that I have my foot in the door so I can wind myself into the options position at my leisure( buy some spreads+ sell equal stock....wash, rinse, repeat till Im all in on the options)

its by FAR the best way to do debit spreads.... dont do it on credit spreads though...it doesnt work due to high gamma screwing things up
Quoting Wulfgar
If you ever do any sort of debit spread its always best to use stock to get into the trade... then wind into the position after....
awesome, I will think on that, thanks bro. I has been called to the bar.....
"If The Fool persists in his Folly he will become wise." - William Blake
cool brother.... make it happen... ill ttyl
Quoting Cecil Gee
{quote} pre market has dropped of a little now to 118.17, before i make final decision I'll wait to see the actual opening prices, if i can get the 119 call below 20c in the first 90 minutes of trading then i will buy, because of pre maeket activity i'm dropping my entry price lower just to limit my risk. we shall see, below is the new pre- price iShares Barclays 20+ Year Treas Bond (TLT) -NYSEArca 117.84 May 13, 4:00PM EDT|Pre-Market : 118.17 {image} 0.33 (0.28%) 8:13AM EDT - Nasdaq Real Time Price
lucky i didn't take this I would of had my ass handed to me, it opened at 118.35 went to 118.44 before it dropped like brick, the 119 call i was looking at opened at 43c so i scatched this trade as i wrote previously.

Momentum was to strong coming back down to risk a late entry
Quoting Wulfgar
looking to get into facebook @ 26.40 have a pending order to buy the stock there with a SL @ 25.60 then Ill just wind into a Sept 26/30 call spread getting about 28 deltas with it... should be good for at least a 3:1 anyone else looking at this?
wulfgar, looked at fb it has to get above 27.20 for me to comfortable for a call spread. If this closes below 27.09 tomorrow then I'll consider buy a put option for a high gamma set up for fridays expiration. $26.50 or$26 put depends on where the price closes tomorrow.

Good luck with yours
I just like the level on FB... its clean... low risk: high reward... if it explodes up after toward your level Ill press the option and turn the evolve the trade into a double vertical spread to collect more off the move
Gold falling off a cliff.

I have been watching gold for years and never grew the stones to trade it.....
"If The Fool persists in his Folly he will become wise." - William Blake
trade IAU brother... its the smae thing... just a hell of a lot cheaper... you can trade it small so you can risk a bit less... it is a great market
Quoting Wulfgar
trade IAU brother... its the smae thing... just a hell of a lot cheaper... you can trade it small so you can risk a bit less... it is a great market
looked at those, options are cheap even months out. Smaller moves on the underlying though, compared to GLD. Actually may be a wash between the two. Either way there's bound to be volatility in store for gold. Got to be lotsa spread plays that would pan out. Just would love to be on the right risk end of another major takedown. Generally I'm bearish gold in light of persistent deflation. Lots of volatility in the miners etf's but the options are too spendy. How do you usually trade IAU?
"If The Fool persists in his Folly he will become wise." - William Blake
its really liquid so its great... I trade it like anything else... I split up IV into 5 different sections and use different strategies depending on where IV lies and if the underlying price is in the right area for something actionable

just bid my cbst may 42 short puts back for .25 today... Im worried in the next few days that thing has some potential for a news event that could move it several standard deviations so Im not holding it to expiration... nice .60 profit on those though in 7 days of decay
potential capitulation move today guys...

getting a little more aggressive but if SPY breaks the 165.30 Ill be looking at some put ratio spreads on a possible speedy correction down to the 161's

CPI data tmmrw will be interesting
Quoting Cecil Gee
{quote} wulfgar, looked at fb it has to get above 27.20 for me to comfortable for a call spread. If this closes below 27.09 tomorrow then I'll consider buy a put option for a high gamma set up for fridays expiration. $26.50 or$26 put depends on where the price closes tomorrow. Good luck with yours
Facebook closed at $26.60 today so at opening tomorrow i will look to buy fridays expiration $26.00 put.

closing price of the option was 7c, so baring no pre market shocks that option should open for around 5c, if it does then i'm buying

FB May 2013 26.000 put (FB130518P00026000)

-OPR

0.07 http://l.yimg.com/os/mit/media/m/bas...nt-1093278.png 0.02(40.00%) 3:56PM EDT
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