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Let's Trade Options

  • #11,441
  • Dec 9, 2015 6:28pm Dec 9, 2015 6:28pm
Quoting The Fool
cue Monty Burns, "Exxcccelent....!!!!...." http://finance.yahoo.com/news/jpmorg...192321466.html
Lol. If liftoff "goes awry" ... . It's either .25 bps or 0 bps ... . Media "hypeage". Luvin' it.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #11,442
  • Dec 9, 2015 6:30pm Dec 9, 2015 6:30pm
Quoting The Fool
{quote} VIX has weeklies that started in July and are now getting kinda sorta decent volume......do you have ToS? Check the Dec5 and Jan2 chains to see some big (15,000) VIX put spread trades....those showed up yestiddy in Time&Sales
Now how the heck did I miss that? Probs sleep deprivation. Or I just got it into my geezer head that there weren't any and then didn't look at them again. (Slaps self silly).
Fireworks are fun ... as long as you don't blow your fingers off.
  • #11,443
  • Dec 9, 2015 6:31pm Dec 9, 2015 6:31pm
Quoting The Fool
{quote} we have the "Pineapple Express" coming in off the Pacific last few days - the meteorologists call it "atmospheric river" - a stream of warm wet air coming at us from like south of Manila somewhere. I can stand on the beach on the WA or OR coast and smell the coconuts....I mean that literally....whatever we get here ya'll get more or less a few days later. Enjoy!
Can you move that beach here?
Fireworks are fun ... as long as you don't blow your fingers off.
  • #11,444
  • Dec 9, 2015 9:01pm Dec 9, 2015 9:01pm
CBOE has a lot of info on their product, the VIX options....

http://www.cboe.com/micro/vix/vixoptions.aspx
"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,445
  • Dec 10, 2015 5:33am Dec 10, 2015 5:33am
Credit anticipates, equity confirms.

http://finance.yahoo.com/video/deep-...212359081.html
http://www.bloomberg.com/news/videos...=yhoo.headline
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,446
  • Dec 10, 2015 6:17am Dec 10, 2015 6:17am
love the monthly charts ..... wti looking apocalyptic, could settle under $35 to close the year
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,447
  • Dec 10, 2015 7:26am Dec 10, 2015 7:26am
A question for you who trade options..specifically options on futures, if any I was wondering, if I take today's example on EUR USD option on futures contracts. Lets suppose that I woke up this morning 8 PM London time and wanted to BUY in the money PUT option on EUR USD 6E at the strike price of 1.10000 and wanted to sell that option when the price reaches 1.09200.

What type of Option is the right call, weekly, monthly, LEAP?

How much money would be needed in margin and considering all broker fees + premium and the exit price how much p/l at the end?
  • #11,448
  • Dec 10, 2015 10:29am Dec 10, 2015 10:29am
Quoting merquise
A question ?
see P/L model from front month
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,449
  • Dec 10, 2015 4:45pm Dec 10, 2015 4:45pm
Hey @The Fool thanks for the chart. As I can see that position would be in the red right? Can you elaborate a little bit and how can it be in the green with those parameters or some others. I am reading about the options and trying to figure out how to day trade with them instead of using Forex or Futures.
  • #11,450
  • Dec 10, 2015 5:31pm Dec 10, 2015 5:31pm
Quoting merquise
Hey @The Fool thanks for the chart. As I can see that position would be in the red right? Can you elaborate a little bit and how can it be in the green with those parameters or some others. I am reading about the options and trying to figure out how to day trade with them instead of using Forex or Futures.
sure marquise I will elaborate some later. I recommend learning to trade spreads if you want to trade options and also futures, for that matter. Just going long/short options without spreading is a good way to go broke.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,451
  • Dec 10, 2015 7:48pm Dec 10, 2015 7:48pm
Quoting merquise
Hey @The Fool thanks for the chart. As I can see that position would be in the red right? Can you elaborate a little bit and how can it be in the green with those parameters or some others. I am reading about the options and trying to figure out how to day trade with them instead of using Forex or Futures.
There are tons of resources on Dough and TastyTrade about trading options, and they've recently added a segment on futures. I would get the options concepts down first before you dive into futures and/or futures options, so you know exactly what you're getting into, how software can help you foresee the most likely outcomes of your setup from a statistical standpoint, etc. ... . Just my two cents ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #11,452
  • Dec 10, 2015 7:50pm Dec 10, 2015 7:50pm
Quoting The Fool
{quote} sure marquise I will elaborate some later. I recommend learning to trade spreads if you want to trade options and also futures, for that matter. Just going long/short options without spreading is a good way to go broke.
And I'm in agreement with TF on the spreads ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #11,453
  • Dec 10, 2015 9:38pm Dec 10, 2015 9:38pm
Quoting merquise
Hey @The Fool thanks for the chart. As I can see that position would be in the red right? Can you elaborate a little bit and how can it be in the green with those parameters or some others. I am reading about the options and trying to figure out how to day trade with them instead of using Forex or Futures.
Hi marquise,

If you buy a call or a put, you always start out in the red. If you buy expensive, in-the-money options, you start out deep in the red. I'll give you some examples with FXE, which is how I sometimes trade euro-dollar options. Regarding EUR/USD, I think it will go down & I think it will trade around $1.03 in mid January. Note there's a 2 cent difference implies in the pricing for FXE and EUR/USD - for instance, when E/U is $1.03, FXE will bet at $101/share
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,454
  • Dec 11, 2015 3:07am Dec 11, 2015 3:07am
Quoting ZebraSquirl
{quote} There are tons of resources on Dough and TastyTrade about trading options, and they've recently added a segment on futures. I would get the options concepts down first before you dive into futures and/or futures options, so you know exactly what you're getting into, how software can help you foresee the most likely outcomes of your setup from a statistical standpoint, etc. ... . Just my two cents ... .
Heh, there are tons of links to read as well as books, so Tasty will have to wait in line For futures I've demo traded them on Ninja platform, I like it. They are the same as forex, the only difference being ticks instead of pips.. Technical analysis works the same. What I like about them is commodities. I loved trading oil, gold, corn, wheat, soy, nat. gas.

But let me try to say what I wanted to accomplish with options if it is possible. Using the yesterday example of EUR USD. Had I opened short position on forex or futures @ 1.1 and closed at around 1.093 since that was the low of the day I would have earned around 60 pips or ticks, so roughly around 600$ to 700$ on futures because of the tick value. Now the real problem would be stop loss. I have to have it, or not, no matter.

With using options I could trade more confidently knowing that I have locked in risk per trade and that that trade can fluctuate for a period of time until the option expiration.

So to put my question simply. Can I replace day trading forex/futures with options in the stated manner, or not? If not are there solutions to it?
  • #11,455
  • Edited 11:46am Dec 11, 2015 9:58am | Edited 11:46am
I'm sorry, merquise, I had hoped to show you a variety of ways to trade spreads on FXE - just don't have time right now & probably won't for some time. I suggest if you just want to trade directionally you will be better off trading futures - options are too expensive and risky to use as a scalping vehicle. If you will learn to use the various spread trading strategies you unlock the potential for high profit and superior risk management with options. Good Luck.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,456
  • Dec 11, 2015 10:08am Dec 11, 2015 10:08am
USO strangler's Dec2 $12/$14.5 for 18c - the $12 puts have gone to $0.82....net 64c or $64 x 85,000 is a $5MM payday, if they hung in.....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,457
  • Edited 5:45pm Dec 11, 2015 11:56am | Edited 5:45pm
Dec2/Dec VXX calendars @ $26, $27, & $28 - all tapped for $0.20 - $0.40 net. Nice fat payday.

If ^VIX continues to blow up next week, I have many Dec/Jan VXX and UVXY calls calendars, some Jan VIX calls bflys also - that will make me richer. Those 1-month calendars have huge like 20 bagger MaxP's on expiry day but I am looking at probably getting out on FOMC day.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,458
  • Dec 11, 2015 1:56pm Dec 11, 2015 1:56pm
Quoting merquise
{quote} Heh, there are tons of links to read as well as books, so Tasty will have to wait in line
just mho - I would move up Tastytrade to the front of the line. There's a bewildering number of vids in there but the content is better than most options books. Re: books, there are many that are just elementary & a few stand out, like "Volatility Trading" by Sinclair, "Trading Options Greeks" by Passarelli, etc....you can get all you need from online resources though, no need to spend money on books you will read once or twice and then put on a shelf...

...re: TT - I don't really agree with how some (most?) people there trade, but I still have learned a lot from looking over their shoulders.....there's really no better free resource for traders of any kind.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,459
  • Dec 11, 2015 2:00pm Dec 11, 2015 2:00pm
already fishing the future ^VIX reversion, trying to fill a Dec5/Jan2 UVXY $20/19 puts diagonal for $0.07
"If The Fool persists in his Folly he will become wise." - William Blake
  • #11,460
  • Dec 11, 2015 2:45pm Dec 11, 2015 2:45pm
30+% upmove for ^VIX today, cowabunga....just need a little follow through next week. Cheers all & have a good weekend.
"If The Fool persists in his Folly he will become wise." - William Blake
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