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Let's Trade Options

  • #1,901
  • Nov 28, 2013 9:51am Nov 28, 2013 9:51am
Quoting The Fool
{quote} December rally would be more expected. I was thinking we could get some jitters around next week's NFP, the Fed, the taper, comet ISON, something. Or probably the RUT will just go up forever. Fuck trading, I should just invent a new kind of cheese straightener, take the company public, and sell a billion shares at $40, then Mila Kunis-Fool and I will retire to Tahiti after I buy it...
haha. You are definitely her type.
I am trying to patent a pizza cutter with a laser light on the top of it to help the guy cutting the pizza to ensure even slices. anyone want in?
maybe we could package your cheese tool and take the whole fucking shootin match public
then we could write options on it and insider trade like the pros

im going to the cowboys/raiders game today.....got sweet seats.....hoping for a thanksgiving miracle upset
  • #1,902
  • Nov 28, 2013 10:03am Nov 28, 2013 10:03am
heres how the book looks: Thanksgiving Edition!

using a random $110k account as example:

7 Jan crude 87.50 puts (sold for $330/worth $270)
7 Jan crude 100 calls (sold for $370/worth $50)
10 Jan 99 calls (sold for $260/worth $60)
6 Jan 96.50 calls (sold for $190/worth $190)
3 Jan Soybean 1380 calls (sold for $350/worth $250)
3 Jan Soybean 1290 puts (sold for $410/worth $625)

Margin is at $49k.

prob gonna roll those bean puts tomorrow I would imagine......f'in beans....moving soooooo much lately.
I already rolled some in other accounts, but not all.
I will most likely buy back those 99 and 100 calls early to free up margin and try to make one last play on the cycle.....its been a good one even with the tiny emini loss......
obviously I could still do more and be safe, since there is over 1/2 the account available.....but it just gets to be too much sometimes......I always feel better running at under 60-70% M/E ratio for safety purposes.
those bean puts kicked my ass all in one day.....hate beans. don't know why I keep coming back to them. so much better with other stuff.
  • #1,903
  • Nov 28, 2013 10:22am Nov 28, 2013 10:22am
Quoting pipple
heres how the book looks: .....hate beans. don't know why I keep coming back to them. so much better with other stuff.
I never traded ags much, some say if you're trading crop futures you're trading crude....of which writing calls will probably pay for some time I expect. I'd bet we see WTI $85 in Q1 '14

...Watching Romo get beat sounds like a pleasant way to spend T'day - enjoy, that will be a good game.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,904
  • Nov 28, 2013 10:35am Nov 28, 2013 10:35am
Netflix has a similar set up as Apple did. for anyone who wants to follow. We are a little late to this as a start move occurred two days ago but still lets reference this for the future.

strangle $370 call with $350 put for DEC 6 expiration'. total cost would be $568 for the strangle'

I'm not in this.

NFLX Dec 2013 370.000 call (NFLX131206C00370000)
-OPR
3.50 http://l.yimg.com/a/i/us/fi/03rd/up_g.gif 1.26(56.25%) 27 Nov 20:58




NFLX Dec 2013 350.000 put (NFLX131206P00350000)
-OPR

2.18 http://l.yimg.com/a/i/us/fi/03rd/down_r.gif 2.37(52.09%) 27 Nov 20:59


closing price yesterday $362.49

Netflix, Inc. (NFLX)
-NasdaqGS
362.49 http://l.yimg.com/a/i/us/fi/03rd/up_g.gif 7.29(2.05%) 27 Nov 21:00|After Hours: : 362.60 http://l.yimg.com/os/mit/media/m/bas...nt-1093278.png 0.11 (0.03%) 28 Nov 00:59
  • #1,905
  • Nov 28, 2013 10:44am Nov 28, 2013 10:44am
Quoting Cecil Gee
Netflix has a similar set up as Apple did. for anyone who wants to follow. We are a little late to this as a start move occurred two days ago but still lets reference this for the future. strangle $370 call with $350 put for DEC 6 expiration'. total cost would be $568 for the strangle' I'm not in this. NFLX Dec 2013 370.000 call (NFLX131206C00370000) -OPR 3.50 {image} 1.26(56.25%) 27 Nov 20:58 NFLX Dec 2013 350.000 put (NFLX131206P00350000) -OPR 2.18 {image} 2.37(52.09%) 27 Nov 20:59 closing price yesterday $362.49 Netflix, Inc. (NFLX) -NasdaqGS...
The above would be a Long strangle
  • #1,906
  • Nov 28, 2013 10:52am Nov 28, 2013 10:52am
Quoting Cecil Gee
{quote} The above would be a Long strangle
I was looking at Netflix a lot over last 30 days or so.....heard good stuff about options with it.
these expire 3rd Friday of Dec right?
  • #1,907
  • Nov 28, 2013 11:00am Nov 28, 2013 11:00am
Quoting pipple
{quote} I was looking at Netflix a lot over last 30 days or so.....heard good stuff about options with it. these expire 3rd Friday of Dec right?
No the one I'm looking at as the example is for the weekly option which expires on the 6th December, non weeklys all expire 3rd friday of each month where you be correct

Also we may see a bounce on crude in the coming week, its sitting right on top of the 200 day ma on weekly chart
  • #1,908
  • Nov 28, 2013 11:17am Nov 28, 2013 11:17am
Quoting Cecil Gee
{quote} No the one I'm looking at as the example is for the weekly option which expires on the 6th December, non weeklys all expire 3rd friday of each month where you be correct Also we may see a bounce on crude in the coming week, its sitting right on top of the 200 day ma on weekly chart
gotcha.
seems like a small window....I suppose Netflix does move enough to make it work though.
I gotta get a demo with options chains to look at how I would handle doing the exact same thing but selling both of those options.....seeing what would be available to trade out of the losing side (if there was one)
gonna look into getting a demo in the next week or so.....
I may have asked you this....but where do you keep your account? I am pretty close to opening one I think
  • #1,909
  • Nov 28, 2013 11:34am Nov 28, 2013 11:34am
Quoting pipple
{quote} gotcha. seems like a small window....I suppose Netflix does move enough to make it work though. I gotta get a demo with options chains to look at how I would handle doing the exact same thing but selling both of those options.....seeing what would be available to trade out of the losing side (if there was one) gonna look into getting a demo in the next week or so..... I may have asked you this....but where do you keep your account? I am pretty close to opening one I think
trademonster
  • #1,910
  • Nov 28, 2013 6:21pm Nov 28, 2013 6:21pm
Quoting pipple
{quote} ....but where do you keep your account? I am pretty close to opening one I think
Check Interactive Brokers for low rates. Lots of options traders like the Think or Swim platform. ToS used to be a broker but was bought out by TD Ameritrade, and TDA kept the ToS platform intact.

http://info.tastytrade.com/wordpress/background/

You can trade options at any of the topend "discount" brokerages like TDA, Etrade, Schwab (Schwab bought OptionsXpress about the same time TDA bought ToS.), etc. But there are much deeper discounts to be had, like at IB and Trademonster, etc.

My mo is to trade from IRA's that I have set up. If you trade from a Roth IRA your deposits are taxed the current year but your earnings on those deposits are not taxed. I'm limited to $6,500 contributions total per year (it would be $5,500/yr if I were under 50) so it takes time to build up accounts to trading size - I usually don't start trading until there's >$5k to trade. This is the best way I have found to beat the high tax rap of trading without setting something up offshore.

http://www.your-roth-ira.com/2013-roth-ira-limits.html

http://www.irs.gov/publications/p590/index.html

Are you allowed to trade your own funds where you work?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,911
  • Nov 28, 2013 7:49pm Nov 28, 2013 7:49pm
Quoting The Fool
{quote} I am trying to play the oil drop for January and beyond, may try a bear put spread on XLE....
looking at long Jan $79p @$0.38, short Dec 27 $83p @ $0.50, $0.12 credit
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,912
  • Nov 29, 2013 12:35am Nov 29, 2013 12:35am
Quoting The Fool
I'd like to introduce my next biatch:
another one, to ride down...looking at long 12/27 $55p, short 12/21 $52p - $1.55/$0.91, ~$0.65 debit

or, long Jan $50p short Dec $52p, $1.36/$0.91, $0.35 debit
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-11-28_yelp.png Size: 52 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,913
  • Nov 29, 2013 7:39am Nov 29, 2013 7:39am
short trading day so taking no positions for gamma scalps today but still have the Las Vegas Sands (lvs) $72 long call trade on from Tuesday
  • #1,914
  • Nov 29, 2013 9:27am Nov 29, 2013 9:27am
Quoting Cecil Gee
Been keeping my eye on this all day and ready to make a play on this,,it may not work with the public holiday and lighter volume but the set up is there for me. long LVS $72 call for 12c. LVS is trading was at at $71.02 when I made the trade LVS Nov 2013 72.000 call (LVS131129C00072000) -OPR 0.12 {image} 0.01(7.69%) 19:25
closed this trade a little bit ago for 32c or $32 per contract, had bought it for $12 per contract. It may increase more but with lighter volume day and short trading hours I'm out with a tidy profit

now trading at $72.20

Las Vegas Sands Corp. (LVS)
-NYSE
72.20 http://l.yimg.com/a/i/us/fi/03rd/up_g.gif 0.66(0.92%) 15:24 - Nasdaq Real Time Price


LVS Nov 2013 72.000 call (LVS131129C00072000)
-OPR
0.32 http://l.yimg.com/a/i/us/fi/03rd/up_g.gif 0.24(300.00%) 15:00
  • #1,915
  • Nov 29, 2013 9:32am Nov 29, 2013 9:32am
Quoting Cecil Gee
{quote} No the one I'm looking at as the example is for the weekly option which expires on the 6th December, non weeklys all expire 3rd friday of each month where you be correct Also we may see a bounce on crude in the coming week, its sitting right on top of the 200 day ma on weekly chart

Crude up a bit today
  • #1,916
  • Nov 29, 2013 10:00am Nov 29, 2013 10:00am
Quoting Cecil Gee
{quote} Crude up a bit today
I don't buy this move....
granted, much higher and the risk manager in me will force a slight repositioning of the 96.50s.....but I would do it reluctantly....kicking and screaming all the way to stamping my trade ticket
rather be safe that stubborn
for now....I sit and wait.....have enough 87.50s to offset problem.....and could roll right now to an agreeable 97.50......but I think I am gonna white knuckle it and try to just let the weekend go by and see what sunday/Monday brings
this is why you leave $$$ on the side.
I mean.....talk about a screwed up market.....up down up down.....it still baffles me....but that's why it is great for option writing.....just enough craziness and plenty of strikes.
granted....all of these stances can change in the next hour lol
  • #1,917
  • Nov 29, 2013 10:07am Nov 29, 2013 10:07am
Quoting pipple
{quote} I don't buy this move.... granted, much higher and the risk manager in me will force a slight repositioning of the 96.50s.....but I would do it reluctantly....kicking and screaming all the way to stamping my trade ticket rather be safe that stubborn for now....I sit and wait.....have enough 87.50s to offset problem.....and could roll right now to an agreeable 97.50......but I think I am gonna white knuckle it and try to just let the weekend go by and see what sunday/Monday brings this is why you leave $$$ on the side. I mean.....talk about...
it is all on lighter volume but I also seeing it re test of around $98-99 and a rejection of there and $80 will it head too, will wait to see on Monday what will happen and the new month
  • #1,918
  • Nov 29, 2013 11:01am Nov 29, 2013 11:01am
Quoting Cecil Gee
{quote} it is all on lighter volume but I also seeing it re test of around $98-99 and a rejection of there and $80 will it head too, will wait to see on Monday what will happen and the new month
id be very surprised if it hits 98-99 by the time Jan exp comes on 12/16....
I really think it will continue to follow this trend down and setting lower highs off of the 100 day MA on the 4hr chart. really good place for entries and exits IMO.
check it out.
either way I just don't trust it as far as I could throw a barrel of it.
  • #1,919
  • Nov 29, 2013 11:15am Nov 29, 2013 11:15am
Another day....damn am I hung over. Need to keep moving dirt....

Sold TSLA Dec 13 $106p @ $0.60 against old Dec 21 $100 long puts to run up a net $0.40 credit spread...TSLA trading around $130. Last week's dip to $116 may have been the year-end selloff I was looking for, but we'll see...

Sold SSO Dec 21 $90p @ $0.34 against old Jan $82 long puts. SSO @ (another) 52-wk high of $98.53 today. This leg brings an original $1.44 debit (on long $82p) down to around $0.60. I should be able to spread out and eliminate the damage maybe walk away with some profit, but have to run the NFP/FOMC gauntlet...could be dicy.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,920
  • Nov 29, 2013 11:23am Nov 29, 2013 11:23am
Quoting The Fool
{quote} HPQ sitting at $27.55 and Dec $28c @ $0.50. I will probably take a $0.55 if it gets there and leave the calls for whatever. $27.78 the 52-week high....
just not quite enough juice for my ($22/$28) wide strangle play. HPQ looking like it wants to make $27.50 again today and if it does I will sell the call leg
"If The Fool persists in his Folly he will become wise." - William Blake
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