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nbowers79
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Everything posted by nbowers79
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Got out of bidu around 121.50........didn't leave much on the table. Hung around and picked up a put spread on aapl 560/550june.... its done me well this afternoon. Will probably close out of it in a day or two....... Apple was at 563.25 when the spread executed. Pretty wild swing this afternoon with the news out of greece. Not sure what to expect for tomorrow but technically aapl looked good so we'll see.
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Time for an update. I closed out the spy spread on friday for a nice profit....unfortunately I was watching cat and decided that it was just a temporary spike so.....I bit. Took on some put contracts and closed them this morning for a nice loss! Luckily I went ahead and jumped on some bidu for the ride back up...not sure if this is a temporary bounce or change in trend but time will tell. Europe can't be fixed over night but I have found that you can't fight the tape and survive very long! I got in to Bidu with a 120/130 june call spread. It went through the bottom strike today and turned a morning loss in to a profit for the day we'll see how the rest of the week goes! Hope everyone had a nice weekend. Good luck this week should be exciting!
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While I realize trading involves little to no manual labor this week has been exhausting! Glad the week is over. Thank you mslk for sharing your insight. Those vxx calls should be treating you well! Going to go catch up on some sleep for Monday!
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Looks like it could have a big break soon. The technicals I watch seem to be sitting right on the edge of a drop.....a big drop. Obviously technical analysis is not a precise science/art so we'll know when we know but it really looks interesting. I'm still holding my spy puts/spread. It has treated me very well this week. I am not the most creative trader though......how have you all been managing in this downturn? Anyone watch cnbc last night as they were discussing the 13f filings and deere's earnings? I'd say someone on that show took a hit on deere!! I have some coffee to drink so good luck to everyone.
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Mid week now on the spy puts/spread....things working well. Market seems to be getting a little ahead of itself with the relentless selling but it seems at any time something could come out of Europe and just send this off a cliff. Stayed away from oil as I'm not informed enough to mess with it! If the market does come back some this will just happen again in June with the new round of elections.......Good luck to everyone!
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Good morning. Looks like today will start out like a real barn burner! Hope everyone got some sleep over the weekend! Starting this week with the vertical put open on the spy. Also watching oil. Europe is looking really bad this morning.......I wonder how much will spill over into the US.
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Exited apple for about an 8% gain....would have liked more but the macro risks seem to be mounting in the world lately! I got into a small vertical put spread on the spy this afternoon in preparation for next week. I have been making more trades than I have intended lately but the market seems to be very volatile, and unsure about direction. Spy short looks like a good deal. Random question for anyone reading this: Do any of you use options oracle? I have tinkered around with it a little lately and am unsure about some of the probabilities its been giving me. Glad the week is over I'm tired.....it was a profitable week but seemed like a long one. Hope everyone has a calm, relaxing weekend.
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Wow......what a week! Whales belong in the ocean, not working for JP Morgan!
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Doubled down this morning.........we'll see how this works. I was kind of thinking the huge reaction to Europe would have happened yesterday....
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This morning I got into a call spread on aapl. I went with jun575/590 looks like it might have some bounce to it. aapl was trading at 562.50 when I entered the position.
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Pretty interesting stuff. Futures currently not reacting very well......I wonder how much longer Merkel will be around in Germany?
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Hi while you are correct that if cat drops to 80 the long puts would have more profit, it doesn't alter the fact that when comparing the two strategies over the same price range the spread takes a fraction of investment to put on and returns a far higher percentage yield for the risk taken.
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Hi, I'm no expert so if anyone has a better explanation please feel free to cut in, or if I am not correct also please cut in.......In response to your questions about risk reduction and higher returns via spreads: If you go into the market and buy 1 in the one in the money put(specifically the june16 110) at todays closing price it would cost you 10.05 per contract plus commission..... the delta on these as of the closing is -.88 so for every dollar the underlying stock moves your option price would move .88 cents. ......so you have 1005 dollars invested in this thing and if you want a 40% return you need the stock to go in your favor about 5 dollars....... In this instance you have 1005 at risk for a possible return of 40% and we're not sure how long it will take to get there.... If you look at a put spread on cat say from 100 to 95.00 you would only need to invest 173.00 for about the same profit except when you factor in that you are only investing 173 and when it has reached your max profit level it will be worth 500.00 your actual percentage return would be far greater. Here your risk is only 173 dollars where the long put was 1005. Hopefully this explanation is close to correct and you find it helpful! Good luck in your trading.
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I decided to try my hand at spreads in order to further reduce the cost of time and volitility. And yes I was making money trading in the money options. I will continue to do both in the future as well. As for now the spread seems to offer a good opportunity to reduce risk and increase return.
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Hi I have taken directional positions via in the money options but for the spread positions I have been buying slightly out of the money positions I use the spread strategy in this instance to help offset the cost of volitility and time. In my experience time is worth little and I try to minimize its cost whenever I can. Also I usually take the position about 3-5 days before earnings and I do it with stocks that seem to be trending. Usually large cap stocks where the options spread is at least 5%. I don't use weekly options, I consider weekly options the same as gambling at a casino.
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I will post up some of my options positions(not actual size though) here to see if anyone has some good feedback to perhaps help me some. I'm new to spread strategies and have had a rocky start. I had purchased some amzn puts last week and sold them this morning to put on a vertical put spread on NFLX, I went with the 100/85 spread. So far so good. All comments are welcome. Thanks
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Introduce Yourself Here - Don't Be Shy!!
nbowers79 replied to trading4life's topic in Beginners Forum
Hi, I have been registered here for several months and figured I'd introduce myself. I'm 33 and trade part time mainly options at this point. I've traded stocks, and forex in the past but have gotten comfortable trading options. I have been basically obsessed with the financial markets since I was 12. I don't consider myself to be an expert on anything and probably make more mistakes than your average trader but hopefully over the course of time I might be able to add something useful here. There seems to be a good amount of useful information here and some very friendly and generous people willing to share! Thanks for having me and I look forward to interracting with some of you in the future. Nathaniel -
Hello to all, I have been trading options for over a year now and would like to see if there are any traders near my area I could discuss stategy with. Anywhere within 30 miles of Pittsburgh, PA would be best. Up until recently I had been buying and selling puts/calls, however, recently have been trying my hand at spreads. Thanks.