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Let's Trade Options

  • #2,361
  • Jan 7, 2014 8:47am Jan 7, 2014 8:47am
Quoting Cecil Gee
pipple's must be having extended holiday break, not seen him in here for a while. Be Good to have him back
I messaged him & not heard back, hope he's ok and in tall cotton wherever he's at
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,362
  • Jan 7, 2014 8:49am Jan 7, 2014 8:49am
Quoting The Fool
{quote} water under the bridge bud & ya can't go broke taking fat profits. Check out NFLX, down $15 at the open! Yowza! I am spread short 1/31 $305p, long 2/22 $295p - spread in profit about $1.75. I am looking for $320....
yep seems to be correction mode, posted areas it could go down to last week. Investors don't like there subscriptions policies
  • #2,363
  • Jan 7, 2014 8:56am Jan 7, 2014 8:56am
GS and C have given back there gains on the open all the NFLX , appl, pcln all showing weakness while the index rise. one is wrong. A surprise is on. FOMC minutes tomorrow or does someone know something we don't
  • #2,364
  • Jan 7, 2014 9:01am Jan 7, 2014 9:01am
Quoting Cecil Gee
{quote} yep seems to be correction mode, posted areas it could go down to last week. Investors don't like there subscriptions policies
well i just need some more time to let those $305 puts decay, still have to get thru earnings Jan 23 & ideally the spread would be in good profit just before & I could take the money & run
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,365
  • Jan 7, 2014 9:08am Jan 7, 2014 9:08am
Quoting Cecil Gee
GS and C have given back there gains on the open all the NFLX , appl, pcln all showing weakness while the index rise. one is wrong. A surprise is on. FOMC minutes tomorrow or does someone know something we don't
"pent up profit taking" the phrase I saw yesterday - I was expecting some of these pigs to bleed the last 1-2 weeks of the year & it didn't really happen

re: FOMC minutes, always a good excuse to stir things up there. Maybe the reality of Fed tapering will start to set in an we can get that correction....
.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,366
  • Jan 7, 2014 11:19am Jan 7, 2014 11:19am
Quoting The Fool
{quote} Watching YELP instead, rising well today, nearing $71 - been sold down hard from previous jaunts into $72+ territory.... ...in Feb $65p at $4.50, YELP earnings are 2/5 close
not the best entry, puts down a buck, but time will tell
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,367
  • Jan 7, 2014 11:22am Jan 7, 2014 11:22am
Quoting The Fool
{quote} I don't think TWTR can be kept down, either - has less than 20% available shares as FB. TWTR down ~5% today on more downgrades... bought Feb 22 $75 calls for $5.46, will look to sell Jan xx >$75 calls on strength
well was right for a day, now looking for a little bounce & will sell Jan 10 $70 calls
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,368
  • Jan 7, 2014 12:05pm Jan 7, 2014 12:05pm
You called this one a few post back. Good job...

Quoting The Fool
{quote} water under the bridge bud & ya can't go broke taking fat profits. Check out NFLX, down $15 at the open! Yowza! I am spread short 1/31 $305p, long 2/22 $295p - spread in profit about $1.75. I am looking for $320....
SPC * Swollen PocketZ Crew!
  • #2,369
  • Jan 7, 2014 12:11pm Jan 7, 2014 12:11pm
Quoting JoeNY
You called this one a few post back. Good job... {quote}
re: NFLX, thanks, just need a little bounce at $320 and some 2-3 weeks of decay and I will make out ok
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,370
  • Jan 7, 2014 12:20pm Jan 7, 2014 12:20pm
UVXY looks to slip under $16, weekly $17 is $0.16, could be worth a punt (straight call or ratio strangle) - heavy day Wed with ADP, FOMC, etc... could catch a VIX spike...UVXY just a few dimes off 52-week low....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,371
  • Jan 7, 2014 12:31pm Jan 7, 2014 12:31pm
Quoting The Fool
MU earnings out Tuesday close, heavy volume in the near-term puts and calls, Feb $23 calls one of the largest options trades from last week. Long or short? Jan-Feb call/put ratio looks very call-heavy. 12.5% of the float is short. Are the heavy otm calls short, capping short stock positions? Or outright gambles on a short squeeze post earnings? Not sure I care.....
well yeah I care now I am in 1/18 $23 calls. They pinned it at $21.50 and prolly sit around there til the close. Looks like a short squeeze may be in play but MU also ripe for bleeding, could go either way, so I must needs cover my arse and buy some cheap puts near the close. If it had gotten to the $22 strike I would have cashed out...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,372
  • Jan 7, 2014 12:32pm Jan 7, 2014 12:32pm
Hey Guys,

Good to see such big interest since the thread was started. I am a newbie forex trader,
but have traded stock options in the past (Interactive Brokers, still rated #1 by Barron's
many years running as a one-stop online broker.)

Forgive me if some questions sound too basic or have been answered already
(would appreciate those links.)

Questions:

1. What brokers are you folks using for forex /other options and are they offering forex too?
2. How deep is the forex options market compared with stock/ETF/futures options market?
3. What kind of leverage does forex options trading offer? (I am pretty confused on this topic
as mostly forex leverage is 1:100.)
4. I have seen the www.fxoptions.com site, but the liquidity seems pretty thin. How are spreads?
5. What kind of tools and market /technical info are out there? Any good forex options analysis sites?

(I have read books by McMillan and Cofnas et al on options.)

Cheers,
Athar.
  • #2,373
  • Jan 7, 2014 12:41pm Jan 7, 2014 12:41pm
Quoting atharmian
Cheers, Athar.
Hi Athar. I am mostly going to pass on answering your questions since I'm not really trading fx options. I do a lot of trading out of IRA's and I can't trade any leveraged instruments there.

You can probably answer most of them yourself by looking at the fx futures options spreads and volume offered at IB or any of the futures/options houses. Any of the reps there will be glad to explain to you anything you'd like to know about leverage, margin, etc.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,374
  • Jan 7, 2014 12:47pm Jan 7, 2014 12:47pm
haven't forgot about UNH for next week's earnings, got whacked around pretty good on previous releases
Attached Image (click to enlarge)
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,375
  • Jan 7, 2014 12:57pm Jan 7, 2014 12:57pm
Quoting atharmian
Hey Guys, Good to see such big interest since the thread was started. I am a newbie forex trader, but have traded stock options in the past (Interactive Brokers, still rated #1 by Barron's many years running as a one-stop online broker.) Forgive me if some questions sound too basic or have been answered already (would appreciate those links.) Questions: 1. What brokers are you folks using for forex /other options and are they offering forex too? 2. How deep is the forex options market compared with stock/ETF/futures options market? 3. What kind...
I think if real retail FX options were available you'd be able to trade them on IB (which is my broker also) but you can't, so they probably don't exist.
The only real FX options are probably those massive things traded by banks between each other and other similarly meaty counterparties.
I know you can trade synthetic FX options with IG Index (a UK-based spreadbet company) but I imagine these are derivatives based on futures options underlyings.

Alternatively you could trade options on FX etfs. FX etfs of course exist and so I'd be very surprised if you couldn't trade options on them. Of course, the downside is that they don't trade out of US hours but you could always hedge yourself in the spot market 24/5 if say you wanted to lock in hypothetical profits on fx etf options out of US hours.
I have no clue what I'm talking about.
  • #2,376
  • Jan 7, 2014 1:00pm Jan 7, 2014 1:00pm
Quoting Boy Wonder
{quote} I think if real retail FX options were available you'd be able to trade them on IB (which is my broker also) but you can't, so they probably don't exist. The only real FX options are probably those massive things traded by banks between each other and other similarly meaty counterparties. I know you can trade synthetic FX options with IG Index (a UK-based spreadbet company) but I imagine these are derivatives based on futures options underlyings. Alternatively you could trade options on FX etfs. FX etfs of course exist and so I'd be very...
why dont you just trade Futures options for FX?

i.e. options on EURUSD futures from CME.

you can get options on FXE for example but quite illiquid to say the least
Attached Image (click to enlarge)
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  • #2,377
  • Jan 7, 2014 1:21pm Jan 7, 2014 1:21pm
Quoting JeremyWS
{quote} you can get options on FXE for example but quite illiquid to say the least {image}
FXE, FXY. FXA, etc. FXE liquidity is ok, options are tradeable, spreads typically $0.03 +/-

interesting to trade fx spot or futures and hedge with futures fx (or equity) options, although I haven't done it, I got enough irons in the fire as is
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,378
  • Jan 7, 2014 1:25pm Jan 7, 2014 1:25pm
Quoting The Fool
{quote} FXE, FXY. FXA, etc. FXE liquidity is ok, options are tradeable, spreads typically $0.03 +/- interesting to trade fx spot or futures and hedge with futures fx (or equity) options, although I haven't done it, I got enough irons in the fire as is
well true, I probably should have been more specfic. far more illiquid relative to Future options and OTC FX cash options.

I mostly just hedge FX spot positions with Options ideas. either as synthetic stops or leveraged carry generation etc etc.

Vol tends to be very inversly correlated to major USD pairs and so there is clear hedging ideas there.
  • #2,379
  • Jan 7, 2014 1:37pm Jan 7, 2014 1:37pm
Quoting JeremyWS
{quote} I mostly just hedge FX spot positions with Options ideas. either as synthetic stops or leveraged carry generation etc etc. Vol tends to be very inversly correlated to major USD pairs and so there is clear hedging ideas there.
well if you have time it would be interesting to see you narrate any of those trades here
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,380
  • Jan 7, 2014 1:37pm Jan 7, 2014 1:37pm
Cecil, I couldn't sell you on some MU earnings juice?
"If The Fool persists in his Folly he will become wise." - William Blake
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