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  • #2,921
  • Feb 12, 2014 3:26pm Feb 12, 2014 3:26pm
Quoting The Fool
{quote} started trading options with $100k, didn't do great first couple years, as she got rolling she has brought in investor capital, so $100k --> $105MM is not all trading returns, I don't think. At any rate, a good story...
Thanks TF.
Well, if she can do it...LOL. How does one go about getting people's cash for such endeavours I wonder. Presumably you've got to pass a load of exams or somefink. The funny thing is so many people give so much cash to people who make so little with it, targetting maybe 5-10% per year. But then I guess those are less risky endeavours.
I have no clue what I'm talking about.
  • #2,922
  • Feb 12, 2014 3:48pm Feb 12, 2014 3:48pm
Quoting The Fool
{quote} I have my popcorn, ready to see if my CSCO and CTL strangles make me a little richer...
i am 2/22 $21/$24 on CSCO, AH is dropping, $22.85 close --> $22.17....I am gonna need $21....lookin like a long shot but we'll see.

CTL falling but could recoup later, hard to call as the ER was not that bad...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,923
  • Feb 13, 2014 1:47am Feb 13, 2014 1:47am
Quoting The Fool
{quote} I like it. Are you looking at anything for next week? How about TSLA? TSLA has been such a darling, hard to see it tanking >$50...ER out 2/17... the 2/22 $140 puts bid $0.36.
Hey The Fool,

TSLA looks interesting - I'll certainly take a further look at them and see what their IV looks like at market open. Looking at their historical earnings they certainly can be quite volatile with previous movements plus / minus $30 in the underlying (around 15% based on market price at that time). They can certainly surprise the market!!! Given the impressive rise in their price recently, it seems expectations are high.....

http://seekingalpha.com/article/2013...or?source=feed
  • #2,924
  • Feb 13, 2014 1:56am Feb 13, 2014 1:56am
Quoting The Fool
{quote} started trading options with $100k, didn't do great first couple years, as she got rolling she has brought in investor capital, so $100k --> $105MM is not all trading returns, I don't think. At any rate, a good story...
Hey The Fool,

Yeah, I recall the same.

She had about 100k with Merrill and took her money out to start trading options. She wasn't that successful in the beginning as she was trading stock options and she said she was "burnt" by earnings a few times (Boy Wonder's very valid points). She moved to indexes and started doing naked short strangles making 50% profit in the 1st year. After this impressive return, she apparently had friends & family & other investors provide her with capital to the tune of about 700k. She then took the 700k and turned this is the the 105mio!!!! Wow, irrespective of where the money came from, it is a very impressive return and certainly much better than any return I have made or any other money mangers I know of....
  • #2,925
  • Feb 13, 2014 2:10am Feb 13, 2014 2:10am
Quoting njr
{quote} Hey The Fool, Yeah, I recall the same. She had about 100k with Merrill and took her money out to start trading options. She wasn't that successful in the beginning as she was trading stock options and she said she was "burnt" by earnings a few times (Boy Wonder's very valid points). She moved to indexes and started doing naked short strangles making 50% profit in the 1st year. After this impressive return, she apparently had friends & family & other investors provide her with capital to the tune of about 700k. She then took the 700k and...
Guys watch her latest interview on tastytrade.com very interesting interview from 2 days ago
  • #2,926
  • Feb 13, 2014 2:42am Feb 13, 2014 2:42am
Quoting Cecil Gee
{quote} Guys watch her latest interview on tastytrade.com very interesting interview from 2 days ago
Thanks Cecil Gee - I'll watch this a little later today but I'm guessing she has still performed well despite the circa 30% rise we had in 2013....
  • #2,927
  • Feb 13, 2014 7:04am Feb 13, 2014 7:04am
Quoting njr
{quote} Hey The Fool, Yeah, I recall the same. She had about 100k with Merrill and took her money out to start trading options. She wasn't that successful in the beginning as she was trading stock options and she said she was "burnt" by earnings a few times (Boy Wonder's very valid points). She moved to indexes and started doing naked short strangles making 50% profit in the 1st year. After this impressive return, she apparently had friends & family & other investors provide her with capital to the tune of about 700k. She then took the 700k and...
Yeah, funny thing, I'm making about 4% per week at the moment; probably more, ever since so many things clicked into place recently after so many years battling these fooking markets.
I'm supposed to be returning to work in IT but it's getting to the stage that I'm making silly money. I honestly don't know what to do. I'd be taking a job that pays a fraction of what I'm pulling from the market. Really I should get a job as a trader in the City but I have no fuckin clue about how to go about that and that would be throwing away decades of IT experience. And I really love IT - the problem solving aspect of it.
They say be careful what you wish for, and they're right.
I have no clue what I'm talking about.
  • #2,928
  • Feb 13, 2014 7:08am Feb 13, 2014 7:08am
DX has broken out below a significant bear flag in case anyone is interested.
Fundamentally it seems mental that the $ is not getting any traction, but we must remember that fundamentals can be postponed or ignored for a long time as the market positions itself for big moves and tries its best to shake out players before such moves. Furthermore, fundamentals don't pay; only price pays.
It's a tough old game, this.
I have no clue what I'm talking about.
  • #2,929
  • Feb 13, 2014 8:26am Feb 13, 2014 8:26am
Quoting Boy Wonder
{quote} Yeah, funny thing, I'm making about 4% per week at the moment; probably more, ever since so many things clicked into place recently after so many years battling these fooking markets. I'm supposed to be returning to work in IT but it's getting to the stage that I'm making silly money. I honestly don't know what to do. I'd be taking a job that pays a fraction of what I'm pulling from the market. Really I should get a job as a trader in the City but I have no fuckin clue about how to go about that and that would be throwing away decades of...
Wow - 4% a week is pretty impressive. On a 10k account this would give a balance of about:

74k at the end of the first year
568k at the end of the second year
4.36 mio at the end of the third year

Nice work Boy Wonder and with results like this I can understand why you aren't keen on returning to your day job...
  • #2,930
  • Feb 13, 2014 8:45am Feb 13, 2014 8:45am
Quoting njr
{quote} Wow - 4% a week is pretty impressive. On a 10k account this would give a balance of about: 74k at the end of the first year 568k at the end of the second year 4.36 mio at the end of the third year Nice work Boy Wonder and with results like this I can understand why you aren't keen on returning to your day job...
Thanks mate you are too kind and yes I've done the maths, which are quite scary, and it's silly to extrapolate (albeit tempting) because you can't have the same attitude to risk with a $1m account that you can with a $1k or even $100k account, and I've had so many false dawns with trading "I've really got it this time" (LOL, just before the next bust) that I don't trust myself not to f it all up. But (sigh) this time feels different (double sigh); my attitude to risk is completely different; my reading of price action is completely different. Or not, LOL.
I'd love to return to my job actually, because trading like this is an incredibly lonely experience no matter how much money you're making. But I have a shot at making truly epic amounts of cash, and then I can do things with that cash - open a business, whatever. And my mate in London (he works in the City) tells me it's bloody awful there; grim as f**k he says; nobody is happy, everybody is miserable.
I have no clue what I'm talking about.
  • #2,931
  • Feb 13, 2014 9:39am Feb 13, 2014 9:39am
Quoting Boy Wonder
{quote} Thanks mate you are too kind and yes I've done the maths, which are quite scary, and it's silly to extrapolate (albeit tempting) because you can't have the same attitude to risk with a $1m account that you can with a $1k or even $100k account, and I've had so many false dawns with trading "I've really got it this time" (LOL, just before the next bust) that I don't trust myself not to f it all up. But (sigh) this time feels different (double sigh); my attitude to risk is completely different; my reading of price action is completely different....
I hope you don't mess it up!

I used to work the contract IT market back in London my self. I'm a BA/PM and then left that to go into trading on my own. From what I hear, it isn't a great place to be working now.....Better off trading on your own. I know what you mean about how it can sometime be a bit of a lonely experience but I'll take this over 18 hour days, meetings and deadlines for critical items due yesterday!!! Have you set yourself up as a limited company, individual sole trader, or some other structure? Reason for asking is that I might be moving back to London sometime soon and will need to work out the best way to structure my taxes :-)
  • #2,932
  • Feb 13, 2014 10:26am Feb 13, 2014 10:26am
Quoting njr
{quote} I hope you don't mess it up! I used to work the contract IT market back in London my self. I'm a BA/PM and then left that to go into trading on my own. From what I hear, it isn't a great place to be working now.....Better off trading on your own. I know what you mean about how it can sometime be a bit of a lonely experience but I'll take this over 18 hour days, meetings and deadlines for critical items due yesterday!!! Have you set yourself up as a limited company, individual sole trader, or some other structure? Reason for asking is that...
Yeah I hope I don't mess it up too!

BA/PM, sounds like stress. I prefer the techie side of things. Some techie once hit the nail on the head: "I get paid to effectively solve crossword puzzles all day".
Great way to make a living, if you're that kind of person.

I did set up a limited company last year, went to all the effort of (almost) opening a business bank account for it, and then ditched it when I got cold feet ("I can't do this for a living, it's too stressful"). But I was trading differently back then.
I did look into the taxes thing though, and it seems that, at least initially, you're better off not trading through a company, because as an individual you get a CGT and income tax allowance. As a company you don't. And we don't really buy much for our trading, so it's not like we have a lot to take off the top line before getting to the bottom line. Of course, once you're making serious moolah, I guess those allowances are peanuts and hence not really a consideration.
I'd like to speak to my brother in law about this, as he's an accountant, but nobody has any fookin clue what I'm up to (apart from a couple of close mates) and I prefer it that way. There's good resources on taxation but if you want specifics on trading usually u gotta pay. And my experience with accountants is that largely they are a bunch of money grabbing bastards who will try to scare you into becoming a client and then (over)charge you a fortune to do stuff large parts of which you either could quite easily do yourself or which you could get somebody else to do (i.e. contract out) for a lot less. I mean, a tax return (self assessment) will cost you maybe 350 to 700 quid; you can do the fucker yourself most often. I did a load recently to cover time contracting abroad (HMRC screwed up) and some fucker wanted to charge me 2k to do them.
I have no clue what I'm talking about.
  • #2,933
  • Feb 13, 2014 10:31am Feb 13, 2014 10:31am
Trying a bear diagonal put spread on SLV here.
Sold SLV Feb21'14 19.5 PUT
Bought SLV Mar21'14 21 PUT
Spread cost 1.40.
The strategy is to try to repeatedly sell ATMs against the long leg.
Silver seems clearly to be at upper resistance and struggling.
I had considered just buying puts but I *think* I might get a better ROC with this strategy. Earlier today I bought a couple of far OTM 3 mth GLD puts but I may close those and open a similar diagonal on GLD in their place.
I should get 4 weeks of ATMs out of this spread, so let's see.
I have no clue what I'm talking about.
  • #2,934
  • Feb 13, 2014 11:39am Feb 13, 2014 11:39am
Quoting Boy Wonder
{quote} Yeah I hope I don't mess it up too! BA/PM, sounds like stress. I prefer the techie side of things. Some techie once hit the nail on the head: "I get paid to effectively solve crossword puzzles all day". Great way to make a living, if you're that kind of person. I did set up a limited company last year, went to all the effort of (almost) opening a business bank account for it, and then ditched it when I got cold feet ("I can't do this for a living, it's too stressful"). But I was trading differently back then. I did look into the taxes thing...

Hey Boy Wonder,

Thanks for the info on this. Much appreciated.......
  • #2,935
  • Feb 13, 2014 1:29pm Feb 13, 2014 1:29pm
Quoting The Fool
{quote} i am 2/22 $21/$24 on CSCO, AH is dropping, $22.85 close --> $22.17....I am gonna need $21....lookin like a long shot but we'll see. CTL falling but could recoup later, hard to call as the ER was not that bad...
this is looking like a real dog, may be stranded between my strikes.....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,936
  • Feb 13, 2014 1:37pm Feb 13, 2014 1:37pm
Quoting The Fool
{quote} calls have gone from $0.08 to $0.45, where I sold half of them this morning - a 180% return on the strangle, let the remaining calls ride into ER or may close b4 the bell if the share price keeps rising...
(re: CTL) sold the balance for $0.50, this trade saved my week....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,937
  • Feb 13, 2014 1:53pm Feb 13, 2014 1:53pm
Quoting The Fool
{quote} I like it. Are you looking at anything for next week? How about TSLA? TSLA has been such a darling, hard to see it tanking >$50...ER out 2/17... the 2/22 $140 puts bid $0.36.
Hey The Fool - TSLA making new highs today and the 140 PUTs obviously dropping. I'm going to sit this one out and look for earnings closer to the 2/21 expiry date....Good luck if you enter this trade....
  • #2,938
  • Feb 13, 2014 2:37pm Feb 13, 2014 2:37pm
T. Fool I have joined you now in the long EEM $39.50 calls for tomorrows expiration for 5c or $5 per contract.

EEM is trading at $39.14 as of now, should EEM close beneath $39 at the close of today then this trade will not work

iShares MSCI Emerging Markets (EEM)

-NYSEArca

39.15 http://l.yimg.com/a/i/us/fi/03rd/up_g.gif 0.01(0.04%) 20:33 - Nasdaq Real Time Price


EEM Feb 2014 39.500 call (EEM140214C00039500)

-OPR

0.05 http://l.yimg.com/a/i/us/fi/03rd/down_r.gif 0.09(64.29%) 20:07
  • #2,939
  • Feb 13, 2014 3:52pm Feb 13, 2014 3:52pm
Quoting Cecil Gee
T. Fool I have joined you now in the long EEM $39.50 calls for tomorrows expiration for 5c or $5 per contract. EEM is trading at $39.14 as of now, should EEM close beneath $39 at the close of today then this trade will not work
yah mon I thought the YellenFed would get us juiced again today and she did, just need follow through tomorrow. EEM can do $0.40-$0.50 no problem and your $0.05 could go $0.25+ easy. I almost killed my EEM calls at BE today, still hangin in....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,940
  • Feb 13, 2014 3:57pm Feb 13, 2014 3:57pm
Quoting njr
{quote} Hey The Fool - TSLA making new highs today and the 140 PUTs obviously dropping. I'm going to sit this one out and look for earnings closer to the 2/21 expiry date....Good luck if you enter this trade....
thanks njr, I will have to sell 2/22 $145 puts, but not in it yet.... let us know if you see something you like for later in the week.
"If The Fool persists in his Folly he will become wise." - William Blake
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