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  • #17,941
  • Mar 7, 2021 7:51am Mar 7, 2021 7:51am
Quoting skyf
{quote} Yes i know but thats not the loss shown immediately on entry. The question at what PRICE?
Not sure what your exact question is, but most platforms calculate any loss or profit on current Bid/Ask price, so if you buy a CALL at $1.30 (your Bid price) and the current Bid/Ask is $1.10/$1.60, you will immediately show a loss of $0.20.....just an administrative calculation, it really means nothing, as you can put an Ask price of $1.40 and technically sell at a profit. Many trades occur between the current Bid/Ask price shown.

Just remember, you actually have no loss or profit until you close your trade or it expires.....
  • #17,942
  • Mar 7, 2021 8:12am Mar 7, 2021 8:12am
Quoting skyf
{quote} Yes i know but thats not the loss shown immediately on entry. The question at what PRICE?
OK I see, so you buy a call for a dollar, at what price will the call value go to $0.00? Well, the simplest thing to do is to chart the P/L of the option. The graph will show you the value of the underlying when th option has lost all value.

This is not exact but it's close enough. For instance, say you think AAPL is going up in the next week or so: you buy the at-the-money Mar 19 call on Monday. On Monday, with AAPL trading at $121.42, you can see that your $122 Mar19 call will go to roughly $0 value if AAPL drops to about $109. You can change the values on the graph - remaining days to expiry, implied volatility, etc, and the 0 value of the call will change somewhat.
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #17,943
  • Mar 7, 2021 9:21am Mar 7, 2021 9:21am
Quoting moneymaker2
{quote} Not sure what your exact question is, but most platforms calculate any loss or profit on current Bid/Ask price, so if you buy a CALL at $1.30 (your Bid price) and the current Bid/Ask is $1.10/$1.60, you will immediately show a loss of $0.20.....just an administrative calculation, it really means nothing, as you can put an Ask price of $1.40 and technically sell at a profit. Many trades occur between the current Bid/Ask price shown. Just remember, you actually have no loss or profit until you close your trade or it expires.....
What i mean is when i buy EU call at Avaoptions at a cost of $500, immediately after entry the -P/L(which changes as price changes) is usually less than $500 and i wonder if when the price -P/L will be -500 can pre-known as well as price for 0$.
Without despair & distraught, focus on Patience to FRESH MOTiVES.
  • #17,944
  • Mar 7, 2021 9:22am Mar 7, 2021 9:22am
Quoting The Fool
{quote} OK I see, so you buy a call for a dollar, at what price will the call value go to $0.00? Well, the simplest thing to do is to chart the P/L of the option. The graph will show you the value of the underlying when th option has lost all value. This is not exact but it's close enough. For instance, say you think AAPL is going up in the next week or so: you buy the at-the-money Mar 19 call on Monday. On Monday, with AAPL trading at $121.42, you can see that your $122 Mar19 call will go to roughly $0 value if AAPL drops to about $109. You can...
What broker gives this info /tool.
Without despair & distraught, focus on Patience to FRESH MOTiVES.
  • #17,945
  • Mar 7, 2021 10:46am Mar 7, 2021 10:46am
Quoting skyf
{quote} What broker gives this info /tool.
Any options broker has charting utilities that will allow you to analyze any options position.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #17,946
  • Mar 7, 2021 2:32pm Mar 7, 2021 2:32pm
In 25 years....Japan fades and China rises. Of all the high-flying stocks we see today, how many actually make a lot of money?

Inserted Video
"If The Fool persists in his Folly he will become wise." - William Blake
  • #17,947
  • Mar 7, 2021 3:50pm Mar 7, 2021 3:50pm
If I have to guess I'd say we see Friday's rally continue into Monday, possibly could get back to SnP previous ath, but pretty soon we will be back to the same game, with the bond market pricing in rising inflation, and the long end of the curve pushing up. Stocks will be tamped down with ^TNX heading to 2.00 or higher. I probably try to catch a quick run like SPX Mon/Wed diag...., but will wait til Monday cards are shown a bit.
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #17,948
  • Mar 7, 2021 7:38pm Mar 7, 2021 7:38pm
Quoting The Fool
If I have to guess I'd say we see Friday's rally continue into Monday, possibly could get back to SnP previous ath, but pretty soon we will be back to the same game, with the bond market pricing in rising inflation, and the long end of the curve pushing up. Stocks will be tamped down with ^TNX heading to 2.00 or higher. I probably try to catch a quick run like SPX Mon/Wed diag...., but will wait til Monday cards are shown a bit.{image}
I agree. The Daily charts show the NDX and SPX should be on the rise for a day or so, but the Monthly on NDX shows more downside likely....
  • #17,949
  • Mar 7, 2021 11:39pm Mar 7, 2021 11:39pm
Quoting moneymaker2
{quote} I agree. The Daily charts show the NDX and SPX should be on the rise for a day or so, but the Monthly on NDX shows more downside likely....
...might not be much for the bulls....no bull follow-thru in Asia....3's, 10's & 30's on sale Tue-Thurs.....I expect we will see more big moves up in rates....stocks will go caca

https://www.treasury.gov/resource-ce...s/auctions.pdf
"If The Fool persists in his Folly he will become wise." - William Blake
  • #17,950
  • Mar 8, 2021 9:16am Mar 8, 2021 9:16am
In the following:

AMT Mar19 205 CALL @ $1.40

This is one of those that traded from $1.15- $1.65 about 20 minutes ago but Bid/Ask never changed, open interest never changed and it shows a low of $1.90.

That is why I put in Wish List orders, because sometimes they get hit out of nowhere.....
  • #17,951
  • Mar 8, 2021 5:13pm Mar 8, 2021 5:13pm
Quoting moneymaker2
In the following: AMT Mar19 205 CALL @ $1.40 This is one of those that traded from $1.15- $1.65 about 20 minutes ago but Bid/Ask never changed, open interest never changed and it shows a low of $1.90. That is why I put in Wish List orders, because sometimes they get hit out of nowhere.....
Just got home and saw I am out of the following:

AMT Mar19 205 CALL @ $4.40 up from $1.40

Didn't expect it to get hit this quickly, but I'll sure take it!!

Must just be my platform, because AMT OI and Volume never changed, and high is currently listed as $3.70....

Too bad I wasn't here at the close, looks like the last hour and a half might have set up some buying opportunities....
  • #17,952
  • Edited 7:47pm Mar 8, 2021 5:40pm | Edited 7:47pm
SE, looks like you were right on WMT..... it might be more in a coma than just sleeping....

But, I have sold at the beginning of the expiration week for a loss only to have the stock shoot up on Thursday and Friday, so maybe there is still a chance.
  • #17,953
  • Mar 8, 2021 5:42pm Mar 8, 2021 5:42pm
There are several I'll be looking at for the open tomorrow. I'll post them here tonight or in the morning.
  • #17,954
  • Mar 8, 2021 7:22pm Mar 8, 2021 7:22pm
This Parrot is probably pining for the fjords

It happens that's one reason I always buy time and pay up for it
  • #17,955
  • Mar 9, 2021 8:10am Mar 9, 2021 8:10am
Quoting moneymaker2
There are several I'll be looking at for the open tomorrow. I'll post them here tonight or in the morning.
Well, I was looking at COST, NOW, CCI, NFLX, NVDA and a couple of more, but with the pre-markets, they look like they will all spike up at the open, so I'll have to see how the day turns out...
  • #17,956
  • Mar 9, 2021 11:55am Mar 9, 2021 11:55am
Quoting SyntaxError
I wont do real time stuff because the madding crowds will start to howl and they want this and they want that whilst acting as total sponges ...
OK, not sure I'd worry too much about that if I were you, but also note this is a thread in the "Interactive Trading" section of the forum. To me, that means people are talking about actual trades they do. It doesn't matter if they are real or imaginary trades. I'd just like to encourage discussion of actual trades.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #17,957
  • Mar 9, 2021 11:56am Mar 9, 2021 11:56am
How would you trade the inevitable GME dump?
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #17,958
  • Mar 9, 2021 4:58pm Mar 9, 2021 4:58pm
Quoting moneymaker2
{quote} Well, I was looking at COST, NOW, CCI, NFLX, NVDA and a couple of more, but with the pre-markets, they look like they will all spike up at the open, so I'll have to see how the day turns out...
In the following:

COST Mar19 330 CALL @ $1.00

Set a Wishful Thinking Bid on this before the open, and didn't really expect it to get hit....never got an alert of the filling and thus wasn't at my computer until now. I should make decent money on this, but honestly, if I would have known I had it, I probably would have already gotten rid of it at a profit of ~$0.75, because I don't see a lot of upside left short term with much of anything now...a few more days, but a bad day on the SPX or NDX and that will negate most up moves of the stocks. Since it has already hit the 5EMA, the next level is the 10EMA (~325.60), so hopefully it will do that soon, so I'll likely get out of that in the next day or so. I gotta figure out what is wrong with this alert stuff, though....

On the plus side, I have had several Wish List orders filled, so that's a good thing. I just need to know when they actually are....or stay at my computer when they are active bids...
  • #17,959
  • Mar 9, 2021 4:59pm Mar 9, 2021 4:59pm
Quoting The Fool
How would you trade the inevitable GME dump?{image}
I wouldn't be able to....they are WAYYYY too expensive for my blood!!
  • #17,960
  • Edited 7:36pm Mar 9, 2021 6:27pm | Edited 7:36pm
You can't buy cheap otm puts on the screwy shit because the iv's will dump when the stock falls, you could lose money even if your long puts go itm.

The fly shown is an option, paying $5 in buying power to get the debit down to near 25c (although who knows if it's fill)...with a maxP over $5 if it finished just right. Flys do not suffer from the falling iv's too much - the short vs long wings counterbalance, although the falling iv's will pull in the b/e points towards expiry. As shown I am modeling a 100% iv drop....
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"If The Fool persists in his Folly he will become wise." - William Blake
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