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Let's Trade Options

  • #16,181
  • Oct 30, 2018 2:06pm Oct 30, 2018 2:06pm
bot this EWZ diag for 5c and it is worth 42c today, maxP with a perfect finish on Nov16 is over a dollar....holding
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,182
  • Oct 30, 2018 2:27pm Oct 30, 2018 2:27pm
1 week EWZ call calendars look good too, holding for more upside to close the week - nickel debit worth over a quarter heading for 50c with a good finish
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,183
  • Oct 30, 2018 2:41pm Oct 30, 2018 2:41pm
my idea has been that this volatility will persist until just after the US midterms and the US stocks will rally into mid-December. If (when) the FOMC serves another rate hike in Dec, it will set the stage for another spell of volatility in Jan and later.

With this premise in mind and blood in the streets still slippery, what are your choices for beat down stocks (or sectors) for a Nov-Dec rally?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,184
  • Oct 30, 2018 2:51pm Oct 30, 2018 2:51pm
Quoting Cecil Gee
I'm going for it again bought SPY 268 calls for NOV2, EXP SPDR S&P 500 ETF (SPY)
You should make money on those, even if you close today.
  • #16,185
  • Oct 30, 2018 2:55pm Oct 30, 2018 2:55pm
here's another nickel spread for ya, a bet the q's will rally back to low $180's by early Dec...
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,186
  • Oct 30, 2018 3:04pm Oct 30, 2018 3:04pm
Quoting Cecil Gee
I'm going for it again bought SPY 268 calls for NOV2, EXP SPDR S&P 500 ETF (SPY) NYSEArca - Nasdaq Real-time price. Currency in USD Add to watchlist 265.74+1.88 (+0.71%) As of 2:50PM EDT. Market open.
closed some at 267.82, below is market close


SPDR S&P 500 ETF (SPY)
NYSEArca - Nasdaq Real-time price. Currency in USD
Add to watchlist
267.88+4.02 (+1.52%)
As of 4:00PM EDT. Market open
  • #16,187
  • Oct 30, 2018 3:07pm Oct 30, 2018 3:07pm
looking for a little dip down and then more up tomorrow perhaps more than today
  • #16,188
  • Oct 30, 2018 3:17pm Oct 30, 2018 3:17pm
Quoting Cecil Gee
looking for a little dip down and then more up tomorrow perhaps more than today
just thinking if futures continue this bull bounce overnight into tomorrow then we may open on a gap up so will have to be fast to close remainder of calls on SPY
  • #16,189
  • Oct 30, 2018 7:02pm Oct 30, 2018 7:02pm
Quoting Cecil Gee
{quote} just thinking if futures continue this bull bounce overnight into tomorrow then we may open on a gap up so will have to be fast to close remainder of calls on SPY
/ES flat going into early Asia - it has been tough lately to get any follow through on up moves. I expect we have not seen the end of big moves in US indices, waiting to see if the mid-term elections will bring any more of that out.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,190
  • Oct 31, 2018 12:04am Oct 31, 2018 12:04am
HYG a nice one to watch - sometimes I trade it. What do the options tell you about where the market thinks bonds are going?
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,191
  • Oct 31, 2018 1:01am Oct 31, 2018 1:01am
if markets rally so will the junk and I will look to leg into the calendar back side long puts - Feb $80 to $78 maybe, then sell the front month (Dec or Jan) if/when the rate hike spook sets in ... not my usual thing but could be sweet, the Fed cooperates HYG slips down below $80....like the '15 move but faster. The calls are so cheap, would be good to cover upside also...
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  • #16,192
  • Oct 31, 2018 1:10am Oct 31, 2018 1:10am
tech rout been real but maybe more to go...some of these names pretty porky, AMD traded <$2 less than 3 yrs ago...2019 might see the real shtf, will be nice to have bags of dry powder...
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,193
  • Oct 31, 2018 7:18am Oct 31, 2018 7:18am
Hello guys, I am trying to learn options for a few weeks now, for learning I am using Tastytrade and Optionalpha, so I know all basics and other things.

What I want to ask you is some advice or help, if I will find answer here somewhere in 810 pages, you can write it and I will read all thread from the start.

I really like credit and debit spreads and also just naked buying calls and puts.

I would like to start with about 2000-3000$ I know it is not big amount, but because of learning, I do not want to put more, so sure I am not looking to make 100% a month but main goal is to be a constitent and confident with options, then I can thing about bigger account.

I was thinking about that, that I would trade only indexes like SPY, SPX, QQQ - I think it is better to master this at the start and then move to more underlyings.

So what is my question?

Can I be constitent just with buyings? I know that it needs to move and there is also time decay, so I am not sure if I should do that or not.

About credit spread, how I can avoid few looses in a row that will delete my all profits. Because there is always something like 3 or 4:1 (risk:reward)

I want to look for expiration 0-5 days. Do you think it is fine?

Should I look for IV and then decide for debit or credit spread?

I would be thankful for any advice, any help, anything.
What you would do with a small acount?
How you would trade this?

As I said, I am not trying to make millions, I want to learn and master. Thanks a lot and have a great day guys
  • #16,194
  • Oct 31, 2018 9:59am Oct 31, 2018 9:59am
Quoting Badget01
Hello guys, I am trying to learn options ...... I would like to start with about 2000-3000$ .....I would trade only indexes like SPY, SPX, QQQ ..... Can I be constitent just with buyings? ......About credit spread, how I can avoid few looses in a row that will delete my all profits. Because there is always something like 3 or 4:1 (risk:reward) I want to look for expiration 0-5 days. Do you think it is fine? Should I look for IV and then decide for debit or credit spread?
Spend several months paper trading before you commit real money. Trading the most liquid names is the best way to go. re: just buying puts and calls: anything is possible but large losses wipe out most who try to trade options this way. re: credit spreads, you need a large account to trade this way and you'll be looking out > a month to find enough profit to make it worthwhile.

All the questions you ask should be answered from your own experience paper trading. There are a lot of moving parts to options and you need to understand them. Watching the vids on tastytrade is great but you have to learn by doing. Good luck.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,195
  • Oct 31, 2018 10:10am Oct 31, 2018 10:10am
Quoting moneymaker2
SWK Nov18 110 CALL @ $3.00 SWK Nov18 112 CALL @ $2.65 These need to collectively go $6.15 ($1.95 + $1.80 + $2.40) above their purchase prices to break even on SWK trades, anything higher is profit. As of this writing, they are collectively $4.35 out of the $6.15. I would expect SWK to be around 117 by the end of next week or sooner based on weekly chart.

Ok, I'm out:


SWK Nov18 110 CALL up to $8.80 from $3.00


SWK Nov18 112 CALL up to $7.30 from $2.65


Collectively, the above two needed to make $6.15 to break even from the other SWK losses and have made $10.45, so they made up for the losses plus some profit. Wish I hadn't closed the SWK Nov2 117 CALL yesterday, but that's the breaks. I doubt the 123/126 CALLS get off 0 by Friday.


CAT Nov23 119 CALL up to $6.10 from $2.45

  • #16,196
  • Oct 31, 2018 10:31am Oct 31, 2018 10:31am
I have solidly bad luck trading credit spreads. All of the largest losses I have incurred trading them. The one below put on a ~month ago for 50c credit and only today does it look like it might be ok. I will take it off Thurs for a small debit, only to avoid another market dump on NFP Friday.
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,197
  • Oct 31, 2018 11:15am Oct 31, 2018 11:15am
Quoting Cecil Gee
{quote} closed some at 267.82, below is market close SPDR S&P 500 ETF (SPY) NYSEArca - Nasdaq Real-time price. Currency in USD Add to watchlist 267.88+4.02 (+1.52%) As of 4:00PM EDT. Market open
closed the rest at 271.32, been a good week
  • #16,198
  • Oct 31, 2018 11:15am Oct 31, 2018 11:15am
Quoting moneymaker2
{quote} Ok, I'm out: SWK Nov18 110 CALL up to $8.80 from $3.00 SWK Nov18 112 CALL up to $7.30 from $2.65 Collectively, the above two needed to make $6.15 to break even from the other SWK losses and have made $10.45, so they made up for the losses plus some profit. Wish I hadn't closed the SWK Nov2 117 CALL yesterday, but that's the breaks. I doubt the 123/126 CALLS get off 0 by Friday. CAT Nov23 119 CALL up to $6.10 from $2.45
Nice well done
  • #16,199
  • Oct 31, 2018 11:17am Oct 31, 2018 11:17am
Quoting Cecil Gee
closed the rest at 271.32, been a good week
telling us the underlying levels at your open and close is ok but it provides no info on the prices of the options that you bought/sold, and your resultant profit or loss....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16,200
  • Oct 31, 2018 11:23am Oct 31, 2018 11:23am
Quoting The Fool
{quote}telling us the underlying levels at your open and close is ok but it provides no info on the prices of the options that you bought/sold, and your resultant profit or loss....
i have done so many times in the past, profits and losses but you always get real time prices when I go in, just have a look at this SPY TRADE
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