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Let's Trade Options

  • #161
  • May 21, 2013 9:57am May 21, 2013 9:57am
Quoting The Fool
{quote} Well, pull up a cheer. No harm in being a noob. There's a papertrader on the CBOE site. Also one at TDAmeritrade with ThinkorSwim, the best options trading platform there is. What do you think the market's gonna do? I put on the Jul put leg of the IAU straddle I mentioned above. I need about a $0.80 move either way from here to make money.
Hello,

Thanks for warm welcome, but I'll have to be silent next couple of days until I brush of dust and get to speeds with you all and set up the demo accounts.
I've already looked up ThinkOrSwim, TD Ameritrade and might get the necessary demo-account filling done tonight. In this post does IB mean Interactive Brokers ??

I have an old copy of McMillan but need to get the Natenberg as I've heard it to be best to understand volatility. Learning and growing.
  • #162
  • May 21, 2013 9:59am May 21, 2013 9:59am
Quoting Wulfgar
{quote} Welcome aboard Options are great but there are a few more moving parts than other instruments so take ur time and learn them. But they absolutely are a great tool and open many many other facets of trading than any other derivative.

I very much agree, and though I've wasted enough time already pondering about learning and going live, it seems it is getting vital I do that now.. or else I'll end up just dreaming...
  • #163
  • May 21, 2013 10:00am May 21, 2013 10:00am
Quoting gj6n68
In this post does IB mean Interactive Brokers ?? I have an old copy of McMillan but need to get the Natenberg as I've heard it to be best to understand volatility. Learning and growing.
right on IB, one of the best deals out there for trading of all kinds. Good luck!
"If The Fool persists in his Folly he will become wise." - William Blake
  • #164
  • May 21, 2013 10:41am May 21, 2013 10:41am
Quoting The Fool
{quote} Well, pull up a cheer. No harm in being a noob. There's a papertrader on the CBOE site. Also one at TDAmeritrade with ThinkorSwim, the best options trading platform there is. What do you think the market's gonna do? I put on the Jul put leg of the IAU straddle I mentioned above. I need about a $0.80 move either way from here to make money.
IAU premiums are still to damn expensive for me to consider any kind of Vega + trades like straddles.... afraid of a volatility crush.... although it always can go higher

Id like it to go just a bit higher so I can slam some credit spreads on it.... or at least give a nice range capturing type credit spread... so far Im flat though on the shiny metal stuff
  • #165
  • May 21, 2013 10:59am May 21, 2013 10:59am
Quoting Cecil Gee
{quote} Taken a trade bought USO $35 strike for 15c, i'm a little pissed as i missed a much lower price of 7c earlier below are the real time prices of the option and underly price United States Oil (USO) -NYSEArca 34.53 {image} 0.32(0.94%) 11:54AM EDT - Nasdaq Real Time Price USO May 2013 35.000 call (USO130524C00035000) -OPR 0.15 {image} 0.03(25.00%) 11:32AM EDT Prev Close:0.12Open:0.10Bid:0.14Ask:0.15Strike:35.00Expire Date:23-May-13Day's Range:0.07 - 0.16Contract Range:N/A - N/AVolume:115Open Interest:807
MY USO trade isn't doing well at the moment, the option I bought is down to 6/7c, i don't think i'm wrong in direction even though i know there is resistance above 35.50. I' ve been trying to figure out what i may have done wrong, trading of the weekly chart might be it, takes time to develop.

T.F./Wulfgar i will get some info together and pm it to you by friday
  • #166
  • May 21, 2013 11:03am May 21, 2013 11:03am
Quoting Wulfgar
{quote} IAU premiums are still to damn expensive for me to consider any kind of Vega + trades like straddles.... afraid of a volatility crush....
yep gold got a little bounce but it couldn't run more'n a day, was afraid of that. Thought about closing yesterday up 20% but thought IAU might get some more long juice. Straddle is slightly asymmetric favoring the call side. $0.75 - $0.80 gets me out in the green with a good while to pan out.

I do lots of straddles and usually make money, sometimes just break even. When I am a savvier options trader I will be able to zero in on the most lucrative trades. Until then I still just need to grow my accounts.

Got a nice long call up about 80% since Monday - that BTU Jun $21 call. I thought that coal would rise and natgas would fall, but not so, so I have Jul UNG puts that are badly otm. But If I close them all today I'll make some profit between the two. Maybe I'll wait til Thursday, big injection number will sink UNG....

Decisions, decisions. That's the attraction of the near-expiry trades. You place your bet and bam it's over. Win or lose but no stress.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #167
  • May 21, 2013 11:13am May 21, 2013 11:13am
Quoting The Fool
{quote} yep gold got a little bounce but it couldn't run more'n a day, was afraid of that. Thought about closing yesterday up 20% but thought IAU might get some more long juice. Straddle is slightly asymmetric favoring the call side. $0.75 - $0.80 gets me out in the green with a good while to pan out. I do lots of straddles and usually make money, sometimes just break even. When I am a savvier options trader I will be able to zero in on the most lucrative trades. Until then I still just need to grow my accounts. Got a nice long call up about...
T.F. IAU is a difficult stock to trade if your long to profit in gamma, the only time a straddle should be attempted is this particular stock/etf is when the underly price is equal to the strike price, there is no movement is this stock compared to GDX, GLD plus the spreads are to wide in IAU compared to the other two, I will use this IAU as the example when pm you, then things will become clearer. its as important to play the right stocks as winning
  • #168
  • May 21, 2013 11:22am May 21, 2013 11:22am
Quoting The Fool
{quote} yep gold got a little bounce but it couldn't run more'n a day, was afraid of that. Thought about closing yesterday up 20% but thought IAU might get some more long juice. Straddle is slightly asymmetric favoring the call side. $0.75 - $0.80 gets me out in the green with a good while to pan out. I do lots of straddles and usually make money, sometimes just break even. When I am a savvier options trader I will be able to zero in on the most lucrative trades. Until then I still just need to grow my accounts. Got a nice long call up about...
I hear ya man

its all about batting singles and doubles... thats the attraction of spread trading imho... and why I like calenders and iron condors so much.... just catch high probability low risk/moderate reward trades and build it up

I just like doing str8 straddles and strangles when IV is really really low because if IV spikes it gives another avenue of building premium in the position

as far as UNG, on sunday I got my foot in the door on some futures contracts and closed em for a profit then wound into a Jan 14 21/26 bull call spread.... longer term trade obviously based on the weekly charts.... but premium is so cheap and IV is so low i couldnt pass up the deal
  • #169
  • May 21, 2013 11:46am May 21, 2013 11:46am
Quoting Cecil Gee
{quote} T.F., I'm still keeping my eye on that EWZ heavy option buying you posted last week, theres a divergence in ewz option pricing, i'm as last week i'm still a little bearish on the ETF, only very short term. I would like EWZ to finish above 55.78 for me to turn bullish long term on it. TLT indicates it to me as it stands today
T.F. EWZ is at 55.30 as of now, very tough resistance its facing at this level but I've notice option buyers are here in this ETF, IF it closes above 55.45 and hold above it for the week then i'm buying those long term call opyions for 22c PRice may never get to 72$ but our option will still increase, low risk trade imo

march 2014 option
  • #170
  • May 21, 2013 12:00pm May 21, 2013 12:00pm
Quoting Cecil Gee
{quote} T.F. EWZ is at 55.30 as of now, very tough resistance its facing at this level but I've notice option buyers are here in this ETF, IF it closes above 55.45 and hold above it for the week then i'm buying those long term call opyions for 22c PRice may never get to 72$ but our option will still increase, low risk trade imo march 2014 option
yes, I like that one too. If the juice keeps flowing I could see a good upside breakout happening there if given enough time. I have hope for my IAU straddle but I hear what you're saying on the underlying moves. My original thought was for a harder bounce, but alas...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #171
  • May 21, 2013 1:25pm May 21, 2013 1:25pm
I am seeing a good chance for some continued USD weakening thru the week. Kuroda maybe comes out later today and says some words that strengthen the yen. What's your favorite options play for a weaker USD scenario? FXE long calls I have played before.

CG, are you still watching TLT?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #172
  • May 21, 2013 1:31pm May 21, 2013 1:31pm
Quoting The Fool
I am seeing a good chance for some continued USD weakening thru the week. Kuroda maybe comes out later today and says some words that strengthen the yen. What's your favorite options play for a weaker USD scenario? FXE long calls I have played before. CG, are you still watching TLT?
I trade UUP as a direct correlation to the $dxy... but its pretty thin compared to bonds or FXE so its probably not the bet thing ever for quick in and out plays... just a bit longer term positions
  • #173
  • May 21, 2013 1:42pm May 21, 2013 1:42pm
Quoting The Fool
I am seeing a good chance for some continued USD weakening thru the week. Kuroda maybe comes out later today and says some words that strengthen the yen. What's your favorite options play for a weaker USD scenario? FXE long calls I have played before. CG, are you still watching TLT?
yes still watching and strangley it has risen with the market, there normally inverse to each other, i'm on sidlines until BB/FOMC takes place. whatever he says has a greater impact on TLT/GLD/GDX more than most other stocks. Wulfgars also correct that FXE is more longer term plays than a quick in and out unless your near a strike price and in that direction
  • #174
  • May 21, 2013 1:47pm May 21, 2013 1:47pm
Have been watching MSFT for a long put, too. Not natural to see MSFT at $35. MSFT supposed to be $26 forever.

CG, yes the long bond correlations are perplexing.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #175
  • May 21, 2013 1:50pm May 21, 2013 1:50pm
Quoting The Fool
Have been watching MSFT for a long put, too. Not natural to see MSFT at $35. MSFT supposed to be $26 forever. CG, yes the long bond correlations are perplexing.
when looking at individual stocks also watch its sector, nasdaq NDX or QQQ the etf
  • #176
  • May 21, 2013 1:54pm May 21, 2013 1:54pm
Quoting The Fool
Have been watching MSFT for a long put, too. Not natural to see MSFT at $35. MSFT supposed to be $26 forever. CG, yes the long bond correlations are perplexing.
very strange its not correlated with this rise in the market right before fomc
  • #177
  • May 21, 2013 1:56pm May 21, 2013 1:56pm
Quoting Cecil Gee
{quote} T.F. EWZ is at 55.30 as of now, very tough resistance its facing at this level but I've notice option buyers are here in this ETF, IF it closes above 55.45 and hold above it for the week then i'm buying those long term call opyions for 22c PRice may never get to 72$ but our option will still increase, low risk trade imo march 2014 option
EWZ STILL CAN'T HOLD ABOVE 55.45

iShares MSCI Brazil Capped Index (EWZ)

-NYSEArca

55.30 http://l.yimg.com/os/mit/media/m/bas...nt-1093278.png 0.37(0.67%) 2:47PM EDT - Nasdaq Real Time Price
  • #178
  • May 21, 2013 2:11pm May 21, 2013 2:11pm
Quoting The Fool
Have been watching MSFT for a long put, too. Not natural to see MSFT at $35. MSFT supposed to be $26 forever. CG, yes the long bond correlations are perplexing.
MSFT does look as if it want a minor correction looking at the daily chart. This strange price action from TLT rising with the markets is weird confirmed now with the VIX and VXX rising as well, they all normally go opposit to each other. I have seen this action a couple of times before and i there was a fall in equities over the next couple of days. I shall watch if this is a repeatable phenomenon
  • #179
  • May 21, 2013 3:07pm May 21, 2013 3:07pm
Quoting Cecil Gee
{quote} MY USO trade isn't doing well at the moment, the option I bought is down to 6/7c, i don't think i'm wrong in direction even though i know there is resistance above 35.50. I' ve been trying to figure out what i may have done wrong, trading of the weekly chart might be it, takes time to develop. T.F./Wulfgar i will get some info together and pm it to you by friday
thanks brother... looking forward to it

Oil is a total mystery to me right now and Im sitting on my hands as far as USO goes... only thing I would even attempt is a ratio put spread if it went to 35...
  • #180
  • May 21, 2013 3:10pm May 21, 2013 3:10pm
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?

Neutralized this spread with stock @ 25.60...

If we open tommorow back inside the range Ill take off the neutralization and keep the spread in play... if not Ill close em both and take the SL
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