Let's Trade Options | Page 390 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

BELLA SYSTEM. Let's try it, let's improve it! 118 replies

Let's Trade The News V 0.4 ! 479 replies

Any Options, Bull Options & Option Bit 39 replies

Let's Trade The News! 46 replies

Let a trade develop? 17 replies

Attachments: Let's Trade Options
Exit Attachments

Let's Trade Options

  • #7,781
  • Edited 11:16am Mar 20, 2015 9:55am | Edited 11:16am
Quoting The Fool
yeah I looked at that Mar SPY call spread, will look at otm diagonals further out. I filled the EWZ $34 call calendar just above for $0.09, let's see if some USD weakness can stick around. Maybe Janet Yellen told her minions to sell the USD ...
Can you please look at those diagonals (SPY March5/April1 216/216.50 calls) I bought the other day? Yours idea .
I can only get this on IB for them:
Attached Image (click to enlarge)
Click to Enlarge Name: SPY-216-diag.PNG Size: 35 KB


If you can give me some scenarios, I don't really now jackshit about them.
Hope is dangerous in this game.
  • #7,782
  • Mar 20, 2015 9:58am Mar 20, 2015 9:58am
trying to fill SPY $214 call calendars, Mar5/Apr1 for $0.05

lots of opps long commods if USD is gonna pull back
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,783
  • Mar 20, 2015 9:59am Mar 20, 2015 9:59am
Quoting StrayDog
{quote} Can you please look at those diagonals (SPY March5/April1 216 calls) I bought the other day? Yours idea . I can only get this on IB for them: {image} If you can give me some scenarios, I don't really now jackshit about them.
will do. later tho, gotta jet
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,784
  • Mar 20, 2015 12:30pm Mar 20, 2015 12:30pm
Quoting StrayDog
BTFD.... I just bought a couple of SPY March 210/210.5 call spreads for $0.11
Closed @ $0.42
Reason: SPX is almost testing previous highs now. Expecting a pullback. SPY can still close above $210.50, but I dont want to risk.
Hope is dangerous in this game.
  • #7,785
  • Mar 20, 2015 1:17pm Mar 20, 2015 1:17pm
Quoting StrayDog
{quote} Closed @ $0.42 Reason: SPX is almost testing previous highs now. Expecting a pullback. SPY can still close above $210.50, but I dont want to risk.
good trade...I wanted some a that, but never got filled - I am always just a copper away from glory, it seems

anyway, these markets would be a lot easier to trade if we just always had runaway bull days on even-numbered days, then heavy pullbacks on odd-numbered days. Why can't the Federal Preserve do anything right?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,786
  • Mar 20, 2015 1:26pm Mar 20, 2015 1:26pm
Quoting The Fool
{quote} good trade...I wanted some a that, but never got filled - I am always just a copper away from glory, it seems
Thanks man. I have learned that from you, my friend.

I made just enough to cover losses on some IWM bear put spreads and UVXY call spreads that will expire worthless today, no more than that.
I will have to fine tune my money management among other things, because I was thinking of this trade to be a higher probability than some others, but I didn't buy more than usual. Well, ok. Learning... Gotta fokus, concentrate... too often I am just too tired for trading. RTH begins at 15:30h my time, and I am up from 7h... Lousy excuse, I just have to drink more coffee.

Other ideas today
That BIDU 215 call went from $0.30 to almost $0.80 and than fall.
Wanted to short EUR around 1.0850, but got cold feet... Had some ideas, but chickened. F...... .
Hope is dangerous in this game.
  • #7,787
  • Mar 20, 2015 1:27pm Mar 20, 2015 1:27pm
Quoting StrayDog
{quote} Can you please look at those diagonals (SPY March5/April1 216/216.50 calls) I bought the other day? Yours idea . I can only get this on IB for them: {image} If you can give me some scenarios, I don't really now jackshit about them.
I have been filling calendars for that short time spread - I have $213's and $214's, both filled as I recall for around $0.08.

I can't put up screenshots of your trade right now, but looks like it has b/e out at about $216.10 and a sweet spot at around $215.35, at expiry. If you can net above $0.45, you'll be doing great - maxP looks like around $0.60 +/-
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,788
  • Mar 20, 2015 2:18pm Mar 20, 2015 2:18pm
watching SPY $210.50 puts in the last hour - could have longed them for $0.03 a short time ago, when SPY was last rejected off of $211, they are $0.11/$0.12 now...let's see where they finish
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,789
  • Mar 20, 2015 2:23pm Mar 20, 2015 2:23pm
Quoting The Fool
I have been filling calendars for that short time spread - I have $213's and $214's, both filled as I recall for around $0.08. I can't put up screenshots of your trade right now, but looks like it has b/e out at about $216.10 and a sweet spot at around $215.35, at expiry. If you can net above $0.45, you'll be doing great - maxP looks like around $0.60 +/-
Wow, thanks man. I didn't realized that max profit could be that large... I was thinking more like if I see $0.20 to run for the hills... .

I must sign in again for that site you found months ago. I was a free member for some time, can't remember the name now, to see option combos like diagonals, that I can't put on dough.

On this page
http://www.optionsplaybook.com/option-strategies/
there are pretty good explanations of majority of simple combos.
Hope is dangerous in this game.
  • #7,790
  • Mar 20, 2015 2:24pm Mar 20, 2015 2:24pm
Quoting The Fool
watching SPY $210.50 puts in the last hour - could have longed them for $0.03 a short time ago, when SPY was last rejected off of $211, they are $0.11/$0.12 now...let's see where they finish
$0.20 and I'm out----a paper trade hero! Time for lunch....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,791
  • Mar 20, 2015 2:29pm Mar 20, 2015 2:29pm
Quoting StrayDog
I must sign in again for that site you found months ago.
http://www.optionsplay.com/

they were not bad, just I can do whatever I need to do in ToS and a few spreadsheets

They email me once a week....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,792
  • Mar 20, 2015 2:41pm Mar 20, 2015 2:41pm
trying to fill GLD vertical calls for Mar5 , $115/$115.5 - for five cents
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,793
  • Mar 20, 2015 3:47pm Mar 20, 2015 3:47pm
Quoting StrayDog
{quote} Wow, thanks man. I didn't realized that max profit could be that large... I was thinking more like if I see $0.20 to run for the hills... .
I have been to the skool of hard knocks on the diagonal spreads. They are very risky. Risky and Quirky. A trader needs to understand the risks and the quirks, or he might get knocked hard, as have I.

I will put up some vids sometime over the weekend to illustrate.

Anyway, these days, I hunt for cheap calendars before I think about diagonalizing.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,794
  • Mar 21, 2015 3:39am Mar 21, 2015 3:39am
Goodday folks,

I would like to get your opinion about using guaranteed stop loss while doing cover call.

As we know well, the greatest risk for cover call is for a stock to gap down below our breakeven price (stock purchased price - premium received from selling call) hence the loss could go beyond our initial risk. Given that some CFD brokers for example IG they do provide guaranteed stop loss hence we can figure out our initial risk accurately right?

Cheers
  • #7,795
  • Mar 21, 2015 6:59am Mar 21, 2015 6:59am
Quoting rapphire
Goodday folks, I would like to get your opinion about using guaranteed stop loss while doing cover call. As we know well, the greatest risk for cover call is for a stock to gap down below our breakeven price (stock purchased price - premium received from selling call) hence the loss could go beyond our initial risk. Given that some CFD brokers for example IG they do provide guaranteed stop loss hence we can figure out our initial risk accurately right? Cheers
Hi rapphire.
I think there is no broker who would guarantee execution of stop loss on stocks, since they are gaping up or down usually in pre-market or after hours, on low(er) liquidity. For example, in case of margin call, they will never close your stocks position outside RTH, because liquidity is low. They will close something else, like futures if you had any, OR wait for market to open to close stocks.

I personally do no use stop loss on stocks, only when scalping CFDs / futures, usually to place it on b/e.
By doing covered call you already lowered that gap down risk, I am afraid that is the max you can do, as a long stock holder.
Hope is dangerous in this game.
  • #7,796
  • Mar 21, 2015 8:28am Mar 21, 2015 8:28am
Quoting StrayDog
{quote} Hi rapphire. I think there is no broker who would guarantee execution of stop loss on stocks, since they are gaping up or down usually in pre-market or after hours, on low(er) liquidity. For example, in case of margin call, they will never close your stocks position outside RTH, because liquidity is low. They will close something else, like futures if you had any, OR wait for market to open to close stocks. I personally do no use stop loss on stocks, only when scalping CFDs / futures, usually to place it on b/e. By doing covered call you...
Thanks Stray Dog.

What i meant is long the CFD (where there is guaranteed stop loss offered by IG markets ) instead of normal stocks in the cover call. Is that feasible?
  • #7,797
  • Mar 21, 2015 10:43am Mar 21, 2015 10:43am
Quoting The Fool
I can't put up screenshots of your trade right now, but looks like it has b/e out at about $216.10 and a sweet spot at around $215.35, at expiry. If you can net above $0.45, you'll be doing great - maxP looks like around $0.60 +/-
SDog, the above is wrong for your SPY call diagonal ($216/$216.5) - the vid runs thru the P/L for a 1-lot trade, so maxP is just $0.10, upside b/e is $216.45 or so, which will come in as SPY rises

http://screencast.com/t/tL3kztJVL
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,798
  • Mar 21, 2015 11:47am Mar 21, 2015 11:47am
Quoting The Fool
{quote} SDog, the above is wrong for your SPY call diagonal ($216/$216.5) - the vid runs thru the P/L for a 1-lot trade, so maxP is just $0.10, upside b/e is $216.45 or so, which will come in as SPY rises http://screencast.com/t/tL3kztJVL
Hey friend, oil getting there....

This is the monthly crude. The better play is waiting for a close below the blue zone (daily/weekly should be enough) then shorting the bounce. At least that's what I aim to do. Will be first time playing options off this method, should be exciting.

will probably only buy one or two contracts, no TP yet...still plenty of time, it will be months out though.
Attached Image
  • #7,799
  • Edited 11:48pm Mar 21, 2015 11:19pm | Edited 11:48pm
Quoting Pharm0r
Hey friend, oil getting there....
I won't be surprised to see new lows for WTI this Spring, maybe approaching $40, but I think that will have to happen in the next 8 weeks and I think that will have to have a corresponding resurgence of USD strength - to new lows for U/J and E/U, for instance. Oil traders are watching the Iran nuke deal developments - if Iran cuts a deal that allows it to sell more oil, that could augment the supply mix and spell trouble for oil bulls.

I still think we will bounce into Q3, though, on surging demand - and I am still shopping for cheap call spreads that mature out there...not going all in, by any stretch, though. Oil could do what natgas has done, sink to persistent glut-induced lowball ranging - lasting for years, who knows...?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,800
  • Mar 22, 2015 2:48am Mar 22, 2015 2:48am
http://screencast.com/t/whZJC56FEVKp

I'd bet oil will move up on the back of a weakening USD, but there are lot of wild cards, so it may just range from low $40's to low $50's for the next month.

The double diagonal shown gets to most of its profit for the midrange of the spread ($16-$18) a week before Apr expiry; if USO will be around $17, you can close the first Apr week for most of the ultimate profit for the spread. $0.15 credit gets it on....
Attached Image (click to enlarge)
Click to Enlarge Name: 2015-03-22_uso2.png Size: 61 KB
"If The Fool persists in his Folly he will become wise." - William Blake
6 traders viewing now