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Let's Trade Options

  • #14,441
  • Dec 19, 2016 8:16pm Dec 19, 2016 8:16pm
Quoting The Fool
CHL Mar $45/42.5 bull puts for 3c - risk $3 to make $250 less a mountain of comms
looks way low for CHL, and prolly take 10c to fill
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,442
  • Edited 3:01am Dec 20, 2016 2:44am | Edited 3:01am
The high cost of OT: re MNKD, some think will rebound - currently trades at < 80c.

The 100-lot Jan '18 $1.5/$2.00 bull call vert costs about $260 - at a $0.01 mid you pay $100 for the contracts and $160 in comms. Fuck. The maxP for the spread will be about $4,500, if MNKD shoots to the moon.

For the same price, $260, you can buy 15x Jan '18 $1.5 calls at a 16c mid....at expiry, the calls would be worth $500 at $2.00, $3,500 at $4.00, $6,500 at $6.00, etc

The "smaller" trade would be better if MNKD looks like it could move to >$4.50 or so in the next 13 months. Doubtful. If it just made it to $2.50, the spread trade would be worth 4x as much as the long calls.....

....there's always a trade-off, it's a $number when you compare different trades, good to know....and it's a different number every day in the life of the trades.
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,443
  • Dec 22, 2016 2:17pm Dec 22, 2016 2:17pm
today just FXI bull puts, Jan27 $32/31 for 13c....let's see if Trump can get the trade war started before he even takes office....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,444
  • Dec 22, 2016 2:26pm Dec 22, 2016 2:26pm
Quoting The Fool
The high cost of OT: re MNKD
not gonna touch that, prolly headed for BK....I rarely trade options on cheap stocks and mostly wanted to illustrate how high cost of comms can affect competing trades
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,445
  • Dec 22, 2016 6:23pm Dec 22, 2016 6:23pm
BOT this Mar SPX put fly for 25c, it is netting 25-30c today....I am tempted to take it off as it's likely there will be some more gas in the rally ....25c fly could be worth over $10.00 with a good finish in March. I could take it off now and buy another with a little wider wings with the profit
Attached Image (click to enlarge)
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,446
  • Dec 22, 2016 10:10pm Dec 22, 2016 10:10pm
Quoting The Fool
...I rarely trade options on cheap stocks
GSAT gets good news and maybe will start looking like a buyout target for somebody.....hasn't traded above $5 in 7 years or so.....
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,447
  • Dec 23, 2016 5:49pm Dec 23, 2016 5:49pm
Quoting The Fool
{quote}GSAT gets good news and maybe will start looking like a buyout target for somebody.....hasn't traded above $5 in 7 years or so...
tried to fill GSAT calendar calls as shown @ 5c, 10c.....no dice....maybe junk, maybe not...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,448
  • Dec 23, 2016 9:00pm Dec 23, 2016 9:00pm
Most high yield analysts scoping 5-10% returns for 2017, would take HYG from $87 to $91-95
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,449
  • Dec 24, 2016 11:16pm Dec 24, 2016 11:16pm
another screener

http://www.gurufocus.com/
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,450
  • Dec 26, 2016 12:40pm Dec 26, 2016 12:40pm
Hi "The Fool" and everyone.

I have tried to search on the web past days about options trading with little luck and now I find this thread

I havent read the thread completely but I have one short question if you do not mind.

What´s the minimum account needed for options? I know it depends on the brokerage but maybe you can give me some clearer picture.

I would like to start "playing" with options, but if 10 grad needed then I would leave it alone.

For example I love Forex because of the simplicity with the mini lots and micro lots and leverage, it helps you to have a little account and gamble a little bit to take some experience blowing a few dollars.

Sorry for my english, it is not my native language.

Regards,
  • #14,451
  • Dec 26, 2016 5:03pm Dec 26, 2016 5:03pm
hola Tortilla y Feliz Navidad,

The minimum you need to trade in a US margin account I believe is $2,000. However, you don't have to trade on margin and there are brokers who will allow you to trade in a cash account with less than that. Since you are not a US citizen, I don't know where you can open an account to trade options, other than Interactive Brokers. You'll have to contact them to see what they will allow for a cash account, but as I recall it is $10k.

Buena suerte.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,452
  • Dec 26, 2016 6:15pm Dec 26, 2016 6:15pm
3 week of nothing for the spoos sets up a bull flag & probable Santa rally into 2017, should take out 2,300 and the Dow should take out 20,000 in the coming thin week or the next.
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,453
  • Edited 11:53pm Dec 26, 2016 11:37pm | Edited 11:53pm
that 11/14 spike to /ng $4.50 saw UNG at $23+

.....I heard tell of another arctic blast to hit the northern US tier at year's end, $4.00 will be a good target for New Year's Day. UNG to $10 a long shot same tf, but $10 maybe spike to $12 if I'm lucky by Jan opex.
Attached Image (click to enlarge)
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,454
  • Dec 27, 2016 3:57am Dec 27, 2016 3:57am
Quoting Tortilla
Hi "The Fool" and everyone. I have tried to search on the web past days about options trading with little luck and now I find this thread I havent read the thread completely but I have one short question if you do not mind. Whats the minimum account needed for options? I know it depends on the brokerage but maybe you can give me some clearer picture. I would like to start "playing" with options, but if 10 grad needed then I would leave it alone. For example I love Forex because of the simplicity with the mini lots and micro lots and leverage,...
Since you don't live in the US, you have many more choices:
1. You can trade CFD's instead of options
2. There is no day-trading rule for you
3. If you live in Canada, minimum is $5K with TD Waterhouse and you can get ThinkorSwim from them
  • #14,455
  • Dec 27, 2016 7:10am Dec 27, 2016 7:10am
Quoting SnoopyAKQJT
Since you don't live in the US, you have many more choices: 1. You can trade CFD's instead of options
Thanks, Snoopy. You trade CFD's in Canada?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,456
  • Dec 27, 2016 7:18am Dec 27, 2016 7:18am
couple long gold trades today: Mar17/31 GLD $120 calendar calls @ 15c; long AUY Feb $3.5 calls for 5c
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,457
  • Dec 27, 2016 7:33am Dec 27, 2016 7:33am
Quoting The Fool
{quote}Thanks, Snoopy. You trade CFD's in Canada?
I am with CMC Markets in Canada. They are out of the UK.
Anybody from anywhere (I think) can go to their UK web site to open a demo account (cmcmarkets.co.uk) .
CFDs are commission-free. The only 'price' for entry is the bid/ask spread. For SPX500, it is $0.50 during market hours and $0.70 afterhours. They allow you to buy, say, 0.1 (yes, not even 1) SPX500, and for stocks, commision is $8 and dividend withholding is 15% until 2017 when it will become 30% due to new US rules.
One can trade oil, gold, corn, DAX, FTSE, NIKKEI, DOW30, RUS2000, etc, commission free, with no lower limit, ie like 0.5 ounces of gold, 0.7 barrels of WTI. The bid/ask spread has to be watched like a hawk because they are NEVER constant. During volatile market times (such as US Election night, Brexit night), and during aftermarket hours, they go up.
CMC doesn't support MT4 nor MT5, though. No EA trading for me on their platform, which is web-based.
  • #14,458
  • Dec 27, 2016 8:02pm Dec 27, 2016 8:02pm
Quoting The Fool
couple long gold trades today: Mar17/31 GLD $120 calendar calls @ 15c; long AUY Feb $3.5 calls for 5c
Doin' some gold ... . I was kind of waiting for a decent GDX, GDXJ entry (bull put verts). You know me ... . Premium selling bus ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #14,459
  • Dec 28, 2016 9:55am Dec 28, 2016 9:55am
Quoting ZebraSquirl
Doin' some gold ... . I was kind of waiting for a decent GDX, GDXJ entry (bull put verts). You know me ... . Premium selling bus ... .
Not much on those gold trades, typical $100 risk.

I didn't chase anything long equities. I still remember what they did after the Dec '15 rate hike. At the open I filled a Mar SPY $213/210/207 put fly for 8c, filled a variety of spreads yesterday, similar long-dated stuff.....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,460
  • Dec 28, 2016 3:26pm Dec 28, 2016 3:26pm
wish I had more time to delve into the Pharma stock opps. Some of them went crazy after Hillary went down - GALE popped $.20 to $3.50....
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"If The Fool persists in his Folly he will become wise." - William Blake
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