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Let's Trade Options

  • #16,101
  • Oct 23, 2018 11:53am Oct 23, 2018 11:53am
Quoting The Fool
Trading the Dec rally premise above, I will demonstrate the power of spreads: The Dec21/Dec31 $292/293 diagonal can be had for 1 cent. 1 cent debit could return > $1. The diagonals have a big downside risk, though, so I mitigate that with a Dec21 $294/295 call vertical...for 6c. So the trade risks 7c and can return as much as $1.25. If I'm wrong about December hey I'm just out 7c... This trade I can put on and forget about until December, no stop loss needed. If the spoos rallies into early Dec back to mid-high $280's, I might start looking to take...
Fool,
I like this spread and I'm on it too. I paid at the end 16c + 28$ commissions
  • #16,102
  • Oct 23, 2018 11:59am Oct 23, 2018 11:59am
Quoting mcmfhg
hi, im a new graduate and begin working as an FX option trader.
I'm not trading fx options and not using options to hedge, per se. Good luck.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,103
  • Oct 23, 2018 12:01pm Oct 23, 2018 12:01pm
Quoting relaxtrading
Fool, I like this spread and I'm on it too. I paid at the end 16c + 28$ commissions
I filled that combo for 9c. 2c for the diagonal and 7c for the vertical. Good luck to us....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,104
  • Oct 23, 2018 12:04pm Oct 23, 2018 12:04pm
Quoting moneymaker2
To make sure I understand, if you risk, say $5000 on a trade, you would not do it unless you expected $15K-$30K profit on the trade?
ok - so if I say risk:reward is 1:3 that means I risk 10c to NET 30c, or risk $100, to net $300. So in the EWZ $40 call calendar just above - I risked 10c (or $10/contract) and I am going to take them off for 50c credit (or $50/contract) - so I net 40c for a 4x (or 4bag) return. Capiche?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,105
  • Oct 23, 2018 1:30pm Oct 23, 2018 1:30pm
Quoting The Fool
{quote}ok - so if I say risk:reward is 1:3 that means I risk 10c to NET 30c, or risk $100, to net $300. So in the EWZ $40 call calendar just above - I risked 10c (or $10/contract) and I am going to take them off for 50c credit (or $50/contract) - so I net 40c for a 4x (or 4bag) return. Capiche?
Got it. Shoot, if I was confident in a trade like that, I'd have 500 contracts on it looking for $20K return!

Sounds like a good plan, TF. I hope you get your 50c and more.
  • #16,106
  • Oct 23, 2018 1:32pm Oct 23, 2018 1:32pm
Quoting mcmfhg
hi, im a new graduate and begin working as an FX option trader and still learning how to trade. I have some questions regarding FX option delta hedge. 1. Do we use premium adjusted delta or spot delta (standart delta) for hedging and FX option? lets say premium adjusted delata is 0.76 and spot delta is %80 for a 1 m EURUSD option. do i need to trade 760k or 800 k? 2. I am still studying on deltas formulas. I understand that premium adjusted delta is calculated by subtracring the current value of the opşton from the spot delta. Is it right?...
Sorry, but I have no experience with currency options, so I can't help you at all.

Best of luck to you, though!
  • #16,107
  • Oct 23, 2018 1:42pm Oct 23, 2018 1:42pm
Question for all of you.
What is your prediction on what the stock will do before the end of this year?

I think it should go up in general, making all those hedge funds, and big money look better on the books and after new year will drop again...
  • #16,108
  • Oct 23, 2018 2:06pm Oct 23, 2018 2:06pm
Quoting Cecil Gee
{quote} dont know what happened there price is on far right $7.78 if I make a few dollars on a bounce I will close out
closed the AMZN trade for a nice profit at 11.78.

Amazon.com, Inc. (AMZN)
NasdaqGS - NasdaqGS Real-time price. Currency in USD
Add to watchlist
1,768.89-20.41 (-1.14%)
As of 3:06PM EDT. Market open.

Call Option for Amazon.com Inc.
AMZNJ26182190000
Last 11.78
  • #16,109
  • Oct 23, 2018 2:23pm Oct 23, 2018 2:23pm
IF YOU like shit that moves, check out TSLA
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,110
  • Oct 23, 2018 2:26pm Oct 23, 2018 2:26pm
Quoting moneymaker2
Got it. Shoot, if I was confident in a trade like that, I'd have 500 contracts on it looking for $20K return! Sounds like a good plan, TF. I hope you get your 50c and more.
That calendar is worth $40 today....it needs to come off b4 the elections, a Bolsonaro landslide, and a general pop in the Bovespa come Monday.

I have other EWZ call spreads fishing the latter scenario for next week - up $42 to $45
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,111
  • Oct 23, 2018 2:28pm Oct 23, 2018 2:28pm
[quote=The Fool;11618073]IF YOU like shit that moves, check out TSLA[/

Lots of good bounces around
  • #16,112
  • Oct 23, 2018 3:21pm Oct 23, 2018 3:21pm
fun for geeks

https://s3.amazonaws.com/cherry-pick...eid=9cf7649fb4
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,113
  • Oct 23, 2018 5:51pm Oct 23, 2018 5:51pm
Quoting relaxtrading
Question for all of you. What is your prediction on what the stock will do before the end of this year? I think it should go up in general, making all those hedge funds, and big money look better on the books and after new year will drop again...
Hard to say right now. DIA weekly chart indicates more downward movement for a bit, but with the Nov. 6 midterm and the Saudi thing going on, it's too far out to give a good prediction based on tangible stuff, in my opinion.

Remember, though, it is common practice for funds to do some window dressing the last few days of a quarter to get rid of losers and pick up some winners so they can act like they had those winners the whole time to make their returns appear higher than what they really were in order to be more attractive to investors.
  • #16,114
  • Oct 23, 2018 5:52pm Oct 23, 2018 5:52pm
Good job on AMZN, Cecil!
  • #16,115
  • Oct 24, 2018 4:33am Oct 24, 2018 4:33am
Quoting moneymaker2
Good job on AMZN, Cecil!
Thx, no plans to trade today just watching futures atm, will see where we are later near the close if we look to close higher today then will look to buy calls on some FANG stocks excluding AMZN as they report tomorrow or even the bank stocks, all ifs and buts at the moment
  • #16,116
  • Oct 24, 2018 4:38am Oct 24, 2018 4:38am
Quoting moneymaker2
{quote} Well, with the market gapping, I got into the following HD strike instead: HD Nov2 177.5 CALL @ $2.35
congrats on that trade it closed at 3.78, well done and good call
  • #16,117
  • Oct 24, 2018 6:16am Oct 24, 2018 6:16am
Depending on how markets react today if we can look to close higher than yesterday or trade higher during the day i'm considering NVDA 235 call for NOV2nd expiration

closing price for the option was 2.41 yesterday with NVDA closing at $218.49.
  • #16,118
  • Oct 24, 2018 6:18am Oct 24, 2018 6:18am
Quoting Cecil Gee
Depending on how markets react today if we can look to close higher than yesterday or trade higher during the day i'm considering NVDA 235 call for NOV2nd expiration closing price for the option was 2.41 yesterday with NVDA closing at $218.49.
CLOSING PRICE 221.06, price above is pre market and changing. The rest still stands
  • #16,119
  • Oct 24, 2018 7:04am Oct 24, 2018 7:04am
Quoting Cecil Gee
{quote} CLOSING PRICE 221.06, price above is pre market and changing. The rest still stands
futures ON INDEXES bounced into positive and NVDA pre market 220.35.
  • #16,120
  • Oct 24, 2018 9:16am Oct 24, 2018 9:16am
The crash of '29 was on this day 89 years ago.
"If The Fool persists in his Folly he will become wise." - William Blake
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