Lets Trade Options!
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Thread: Lets Trade Options!

  1. #1
    Any choices traders here? Want to discuss trading choices? Not sure if this thread will go anyplace. If I loe even one trader inforexsoutheast.asiawho wants to share some decent options trading thoughts, then I'll be happy.

    I am not a very complied choices trader - been trading choices m/l full time for just the last year or so. I am basically a newcomer, but I make money. Being a greenhorn, I am not out to be the guru of anybody. And I am not searching for you. I enjoy learning by doing.

    I don't want to spend much time talking options in general, for example, what is an option? Why trade choices? Etc - but I'll find those topics from the way in this first post. There was another thread about options trading aboutforexsoutheast.asiaawhile back and trader laid out some excellent ideas for novices - worth a look if this is you:

    https://www.forexsoutheast.asia/gene...ing-forex.html

    Also, if you are relatively new to options trading I highly recommend you get about the CBOE site and use the free instruction and trading tools that are there:

    http://www.cboe.com/

    Some great books to begin with:





    So, wait, dude, this is a forex website, why are you talking about choices?

    Well, of course it's possible to trade options on whatever - stocks, FX, metals, indices, financials, ags - virtually anything that trades on the futures and stock exchanges. And, as our friend was able to say It is all 1 trade.

    So that's 1 thing I enjoy about trading choices: there is lots of selection available to you if you need or want it. If you are into intermarket analysis as I am, you can find good trades. But the primary reasons I have gotten m/l an options trader would be these:

    1) Risk Control: Generally talking, and for me personally anyway, trading choices has compelled me to reside within defined risk parameters for every trade. I never have uncontrolled transactions anymore. I get my ass handed to me personally, and no doubt, but it's on my terms.

    2) Tax functions: I trade options from several accounts. Brokerage accounts and IRA accounts. I am at daytrading degree ($25k) on a single account and building towards there on the others. What I really like is the idea of trading from the Roth IRA accounts, where all of profits are tax-free. I could not trade place fx but choices trading is permitted. This is, although there are methods to beat the taxman. So my focus is on building these Roth accounts.

    OK, so enough generalities by way of introduction. If you are doing some options trading, I'd like to hear what it is you are taking a look at.

  2. #2
    Thus, some recent transactions that I have closed or opened. So I've been closing transactions that'd that date I trade the monthlies and expiry is coming up next Friday.

    Great concessions:

    Closed 5/18 $63 YCS long calls once I watched U/J spike Friday. YCS a decent way to short the yen, have done exactly the trade a few times this past year. Left a few there since yen will prolly keep sliding. Nevertheless, it was roughly a 120% roi.

    Closed 5/18 $11 EWJ extended calls. Great profit. EWJ a bullish Nikkei trade. (Approximately.)

    Closed 5/18 $78 XLE puts (back in April when XLE dipped to $74.) I enjoy another SPDR ETF's and trading choices on XLE. In addition, I trade options on oil through USO.

    Dumb Trades:

    Played a straddle on TMF. 5/18 73 put/call. It did exactly what I thought it would do, went to $77 a week after I purchased it and I offered the call there thinking that I would earn money and that was a shirt. Plus it did slip, so I offered the place and I made money on the straddle. Bad trade since there was quantity on TMF and that broke one of my rules: do not trade overpriced choices. And then I offered too soon - TMF was as low as $66.41 on Friday.

    June 22 $40 TSLA puts. Tried to play with a mean reversion put on a volatile movement up for TSLA. The reversion did happen and I tried to shut at like profit but just missed passed chances to bond at breakeven, 25% down. As TSLA has been among the stocks of the Spring Pretty was down 75%. Worst trade I'll market eventually coming on any kind of pullback for prolly a total loss of high - TSLA will prolly go to the moon as much as its being hyped.

  3. #3
    New Trades:

    I see the high %gainers and %losers, the high volumes of choices exchanged, etc.. I seek mean reversion plays out. One late last week, that I saw was LINE. Following is a 2-yr chart:

  4. #4
    So LINE looked like a mean reversion candidate that was good to me. I did some dd and see the dip at the stock has been the result of a hatchet piece with a journalist at Barron's, not the time. Is that the reality? Who knows? But it smells of manipulation. That is a odor in the markets. That is the odor of cash. I ended up buying Jun 22 $35 calls. 1 day reunite was 12%. Stock was around $35.10 AH on Friday, I am looking for at least 36...

    I enjoy these mean reversion gambles but they're risky and you have to do great dd to determine what you can see in regard to what is behind the huge moves.

  5. #5
    Nice tread Fool! Will follow....
    I am not an option trader but always wanted to get involved....
    That Line trade looks good, all last year it is ranging, now it is in the bottom of the range if it hit the shirt even the middle of the range You're in

  6. #6
    Quote Originally Posted by ;
    So LINE appeared to me like a good mean reversion candidate. I see the dip at the stock has been the result of a hatchet piece by a journalist at Barron's, not the time either and did some dd. Is that the reality? Who knows? But it smells of manipulation. That is a frequent smell in the markets. That is also the smell of money. I ended up buying Jun 22 $35 calls. 1 day return was 12%. Stock was around $35.10 AH on Friday, I am searching for at least $36... I enjoy these mean reversion gambles but they're risky and you have to...
    like this thread 'fool' egies you use are buying options, have you ever sold them. Its exactly what institunionals do. Ensure you understand margin requirements. Still good thread

  7. #7
    Quote Originally Posted by ;
    quote like this thread 'fool' egies you use are buying options, have you ever sold them. Its exactly what institunionals do. Ensure to know margin requirements. Still superior thread
    Hi Cecil, yes I understand there is a universe of options egies to pick from as I've said, I am not so sophistied. I do know margin demands one reason I have avoided margined egies is because I am trying to build up some tiny accounts fast (I'm restricted in the IRA accounts how much principal I could donate annually) and that I don't need to limit the job which may be done with restricted equity in these accounts. In addition, in the tiny accounts, I can't day-trade options (daytrading options here in the united states is defined as making over 3 round-turn options trades in any 5 running market days) so I don't wish to implement egies that involve numerous options purchase/sales.

    As I get larger and better edued I am sure I will do more options promoting I am interested in these egies involving credit spreads, writing covered calls, etc..

  8. #8
    Quote Originally Posted by ;
    quote Hi Cecil, yes I understand there's a world of options egies to choose from as I've said, I'm not very sophistied. I really do know margin requirements one reason I have avoided margined egies is since I am trying to develop some tiny accounts quickly (I am restricted in the IRA accounts how much principal I can contribute annually) and I really don't want to limit the work that can be done with restricted equity in those accounts. Also, in the tiny accounts, I can not day-trade options (daytrading options here in the US is described as creating...
    Hey F.

    I totally umderstand your motives and to be truthful I too attempt to limit myself to just buying options today as its easier and I can control my risk and trades to an acceptable level. For this attempt exploring the choices that they potentionally have super leverage capacities where the risk of capital can increase dramitcally supplying you trade the components as in stock/etf's.

  9. #9
    Yeah, as it happens, I'm sitting ploughing through McMillan right .

  10. #10
    I've July 20 UNG $21 puts. ETF UNG monitors the month NG futures. Bought in March if UNG was a little over $22. Showing a small profit now. Should I hang in for longer? Attached is the UNG chart. Nat Gas will slide if there is a warmer than Spring. Main reason - believed a Spring we would observe. We've had a Spring. I had been hoping to get a dip to lt;$16 like last June. The politicized issue of LNG exports complies matters. UNG been on a slide from $23.50 past fourteen days. Decisions, decisions.

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