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Let's Trade Options

  • #881
  • Jun 28, 2013 10:54am Jun 28, 2013 10:54am
Quoting Cecil Gee
{quote} also looking to take a put tomorrow $22.50 if i can get it for 6c on GDX turn my already GDX into a strangle
I'm in nothing new, limited screen hours, contemplating various trades - FXE, GLD, watching for collapse of volatility for shorter term plays on VXX or UVXY, as vol will be back. Odd week next week with NFP stranded. I may take a short vacation from trading - I need one.

my Jul NUGT $6 calls are looking better today - NUGT is up $1.11, 24%, and is about to touch the 6$ strike...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #882
  • Edited 12:25pm Jun 28, 2013 12:11pm | Edited 12:25pm
Quoting Cecil Gee
{quote} briefly touched 22.4o brfore it bounce so not touching it so bought the $24 call for 5c, tomorrow expiration. GDX trading at $22.91 now GDX Jun 2013 24.000 call (GDX130628C00024000) -OPR 0.05 {image} 0.01(16.67%) 2:23PM EDT
closed the GDX OPTION $24 call for 43c a while back +800%

GDX Jun 2013 24.000 call (GDX130628C00024000)
-OPR
0.43 http://l.yimg.com/os/mit/media/m/bas...nt-1093278.png 0.39(975.00%) 2:44PM EDT
  • #883
  • Jun 28, 2013 12:14pm Jun 28, 2013 12:14pm
Quoting Cecil Gee
{quote} if it opens below $22.50 then the $22 put for 6c or under, watch how the miners react in asia, BHP - RIO TINTO
didn't take it as the option opened at 12c double what i was prepared to pay, got lucky as it went the other way
  • #884
  • Jun 28, 2013 12:19pm Jun 28, 2013 12:19pm
Quoting Cecil Gee
{quote} may even take GOOGLE $865 PUT for 10c or lower on the open if google opens lower than $876, this option closed for 25c GOOG Jun 2013 865.000 put (GOOG130628P00865000) -OPR 0.25 {image} 1.58(86.34%) 3:59PM EDT
Google did open lower than $876 but the option opened higher at 40c so out of my range

GOOG Jun 2013 865.000 put (GOOG130628P00865000)
-OPR
0.01 http://l.yimg.com/a/i/us/fi/03rd/down_r.gif 0.24(96.00%) 2:44PM EDT


Prev Close:
0.25
Open:
0.40
Bid:
N/A
Ask:
0.05
Strike:
865.00
Expire Date:
28-Jun-13
Day's Range:
0.01 - 0.40
Contract Range:
N/A - N/A
Volume:
1,290
Open Interest:
3,750
  • #885
  • Jun 28, 2013 12:37pm Jun 28, 2013 12:37pm
Ready for more down action in GOLD and TLT next month
  • #886
  • Jun 28, 2013 3:03pm Jun 28, 2013 3:03pm
Quoting Cecil Gee
Ready for more down action in GOLD and TLT next month
yup i'd like to see a deeper dip in the 10yr rate and a decent bounce in gold. whole lotta re-shuffling in the big hands there at the end of the quarter, nice to see volatility elevated, not that I played it all that well.
Expect more next week.

Coming week jobs numbers: bad is good, good is bad, the taper genie has been let out the bottle. But I'd like to see green market days early in the week and a dip in VXX toward $19 or lower, then a stellar NFP number for a new wave of taper panic. Don't fear the Tapir!

http://images.northrup.org/picture/xl/tapir/tapir.jpg
"If The Fool persists in his Folly he will become wise." - William Blake
  • #887
  • Jun 28, 2013 3:06pm Jun 28, 2013 3:06pm
Quoting Cecil Gee
{quote} closed the GDX OPTION $24 call for 43c a while back +800% GDX Jun 2013 24.000 call (GDX130628C00024000) -OPR 0.43 {image} 0.39(975.00%) 2:44PM EDT
"If The Fool persists in his Folly he will become wise." - William Blake
  • #888
  • Jun 28, 2013 5:20pm Jun 28, 2013 5:20pm
As from next week we will start to have quarterly earnings results so be extra careful when putting in trades check dates first
  • #889
  • Jun 28, 2013 6:51pm Jun 28, 2013 6:51pm
Quoting Cecil Gee
As from next week we will start to have quarterly earnings results so be extra careful when putting in trades check dates first
YUP, I am expecting a blowout NFP and a subsequent further round of market angst. I need to settle down on a short list of trading vehicles, mostly will be indices I reckon and a few choice stocks. Have some good paydays coming soon so I will be able to get another account above daytrade limit. Have a good weekend CG.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #890
  • Jun 29, 2013 3:45am Jun 29, 2013 3:45am
Hi guys. Could you tell me if options are traded with leverage provided by brokers like in FX and whats the minimum amount of dough I would need to start trading them? Thx guise
  • #891
  • Jun 29, 2013 4:51am Jun 29, 2013 4:51am
Quoting The Fool
{quote} YUP, I am expecting a blowout NFP and a subsequent further round of market angst. I need to settle down on a short list of trading vehicles, mostly will be indices I reckon and a few choice stocks. Have some good paydays coming soon so I will be able to get another account above daytrade limit. Have a good weekend CG.
safer that way through earnings season, you too have a good weekend
  • #892
  • Jun 29, 2013 11:14am Jun 29, 2013 11:14am
Quoting backinblackl
Hi guys. Could you tell me if options are traded with leverage provided by brokers like in FX and whats the minimum amount of dough I would need to start trading them? Thx guise

THE typical account balance you need to start in options I have seen is $2500. You need $25k to get past the pattern daytrading limitations. If you have <$25k you are limited to 3 round turn trades in any 5 running market days.

You don't get leverage in options in the same way as in forex. However, "leverage" is built into the way options contracts are priced. For example, let's say you want to go long AAPL: right now AAPL is at $396. To buy 100 shares costs you $39,600. The Jul 20 $400 call sells for $8.24. Buying one contract costs you $824. $396/$8.24 = 48:1. So you've got a leveraged 100 share long position in AAPL, with limitations. You have until Jul 20 until the contract expires. If AAPL tanked and went to $300 by Jul 20, you'd lose all of the $824 premium you invested in 1 call. If you were in the stock, you'd be down $9,600.

If you just want to long stock, long calls in the stock is always a better way to go imho.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #893
  • Jun 29, 2013 11:49am Jun 29, 2013 11:49am
http://www.marctomarket.com/2013/06/...hnical_29.html

"The euro's attempt to recover in the second half of last week fizzled near $1.3100 and closed below the 200-day average (~$1.3075) for the third consecutive session. This area will likely contain upticks. We look for the euro to test the trend line drawn off the early April and mid-May lows. It comes in near $1.2850 at the end of next week. This translates into dollar gains into the CHF0.9540-70 area."

I might consider a bearish position on FXE, but E/U is a a little sticky for my tastes sometimes.

I'll be watching with interest Japan's elections. If Abe solidifies control of the government, we could see new highs in the Nikkei.

http://finance.yahoo.com/news/japan-...112046131.html
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-06-29_ewj.png Size: 46 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #894
  • Jun 29, 2013 12:09pm Jun 29, 2013 12:09pm
Quoting The Fool
{quote} THE typical account balance you need to start in options I have seen is $2500. You need $25k to get past the pattern daytrading limitations. If you have <$25k you are limited to 3 round turn trades in any 5 running market days. You don't get leverage in options in the same way as in forex. However, "leverage" is built into the way options contracts are priced. For example, let's say you want to go long AAPL: right now AAPL is at $396. To buy 100 shares costs you $39,600. The Jul 20 $400 call sells for $8.24. Buying one contract costs you...
Thanks TheF, so the stock would have to fall 24$ for me to lose the whole contract...How likely is for that to happen tho, does it happen to you sometimes that you lose whole contracts like that?
  • #895
  • Jun 29, 2013 12:10pm Jun 29, 2013 12:10pm
I've meant 96$ sorry
  • #896
  • Jun 29, 2013 12:23pm Jun 29, 2013 12:23pm
Quoting backinblackl
{quote} Thanks TheF, so the stock would have to fall 24$ for me to lose the whole contract...How likely is for that to happen tho, does it happen to you sometimes that you lose whole contracts like that?
If you were long call AAPL and it started to dive, you could exit your position and retain some of the value. You could put in a stop-on-quote, a stop loss, to close the postion if it goes against you.

If I am in a small position that I bought cheap and I was wrong on the trade, I will let it expire worthless sometimes. Other times I will close a bad trade to recover some of the premium. There are lots of ways to control risk in options trading, many of which involve limiting profit potential. If I am in a simple directional trade then my risk is set via the size of the trade.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #897
  • Jun 29, 2013 12:40pm Jun 29, 2013 12:40pm
Quoting The Fool
{quote} If you were long call AAPL and it started to dive, you could exit your position and retain some of the value. You could put in a stop-on-quote, a stop loss, to close the postion if it goes against you. If I am in a small position that I bought cheap and I was wrong on the trade, I will let it expire worthless sometimes. Other times I will close a bad trade to recover some of the premium. There are lots of ways to control risk in options trading, many of which involve limiting profit potential. If I am in a simple directional trade then my...
Sounds very interesting, TheF, thanks for explaining this to me.
  • #898
  • Edited 2:30am Jun 30, 2013 2:06am | Edited 2:30am
Wicked hot in the West USA this week. No letup in the forecast. Even hot here in the misty PacNW. I came downstairs to get the window fan. Also in the news last week was BO's executive order re: climate change. Now existing fossil fuel power plants will have to monitor and control carbon emissions. Bad news for coal, good news for nat gas. Friday saw a dip in UNG to $18.69. That may have been the seasonal low. Well, I am a gambler so I will take a shot - looking at a debit bull spread. Sell UNG Oct $16 put @ $0.38, buy Oct $21 call @ $0.70. Might sell the Sept $17 put for $0.44 instead...could buy the Oct $22 call for $0.45 then...these numbers will likely all move against me on Monday morning, we'll see...
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-06-30_UNG.png Size: 53 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #899
  • Edited 10:54am Jun 30, 2013 3:04am | Edited 10:54am
Cool!! New to options. Thanks for the awesome thread! Im going to try this trade out, see how it goes.

Buy SPY put, $149 strike price, Expiration Sep 20 2013, take profit @ $143.30

Attached Image (click to enlarge)
Click to Enlarge Name: SPY.png Size: 190 KB


By the way, what is a NS option?
  • #900
  • Jun 30, 2013 9:27am Jun 30, 2013 9:27am
Quoting Starry
Cool!! New to options. Thanks for the awesome thread! Im going to try this trade out, see how it goes. Buy SPY put, $49 strike price, Expiration Sep 20 2013, take profit @ $43.30 {image} By the way, what is a NS option?
Hey, Starry, thanks for checking out the thread. Are you sure about the strike price on your SPY put? SPY trading at $160 now....

NS = "Non-Standard"....? Not sure beyond that....
"If The Fool persists in his Folly he will become wise." - William Blake
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