GILD ready to rock now
edit to add: 37.53k bid @ 63.00 filled and nowwww ready to rock
edit to add: 37.53k bid @ 63.00 filled and nowwww ready to rock
Stock Markets
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Last: 1 hr ago by Maximus_Meridius
McInnis....question since I know you and a few others are active Options traders.
I am pretty much a shares and covered calls player short, swing and long. I am tired of missing out on all the fun some of you guys have with the options trades so dipped my toes in to watch the fluctuations with decay and rise with the stock performance, time horizon, etc. Not that I want to lose money on my toe dipping but just bought a limited number of calls as 'education' whether I lose or not. Cheap hands on knowledge.
Are you setting stops immediately when you buy options? If so are there some parameters you are using differently than shares purchases?
I am pretty much a shares and covered calls player short, swing and long. I am tired of missing out on all the fun some of you guys have with the options trades so dipped my toes in to watch the fluctuations with decay and rise with the stock performance, time horizon, etc. Not that I want to lose money on my toe dipping but just bought a limited number of calls as 'education' whether I lose or not. Cheap hands on knowledge.
Are you setting stops immediately when you buy options? If so are there some parameters you are using differently than shares purchases?
I have no idea what I'm doing but am currently in the middle of the same experiment, and thus far I've found that for me doing verticals is much better. I have transitioned from naked calls/puts to debit spreads, and will venture next into credit spreads and iron condors. I'm not a text book kind of guy, never have been so I do best hands on and trading in small lots helps me learn.
Happy Birthday Prog! Go get'em today.
MBIO at $2.99
I'm determined to learn at the very least basic options trades. Wife out of town, kids in the area out of town, have books, videos, BBQ and a cold beer to immerse myself for the next 3 days.jwhitlock3 said:
I have no idea what I'm doing but am currently in the middle of the same experiment, and thus far I've found that for me doing verticals is much better. I have transitioned from naked calls/puts to debit spreads, and will venture next into credit spreads and iron condors. I'm not a text book kind of guy, never have been so I do best hands on and trading in small lots helps me learn.
Take it from me, I've gotten destroyed cause I didn't set stops. I actively watched my positions go down in flames. Set stops on the trades.FJ43 said:
McInnis....question since I know you and a few others are active Options traders.
I am pretty much a shares and covered calls player short, swing and long. I am tired of missing out on all the fun some of you guys have with the options trades so dipped my toes in to watch the fluctuations with decay and rise with the stock performance, time horizon, etc. Not that I want to lose money on my toe dipping but just bought a limited number of calls as 'education' whether I lose or not. Cheap hands on knowledge.
Are you setting stops immediately when you buy options? If so are there some parameters you are using differently than shares purchases?
Others know much better and my learning style might be different but plugging things in here and looking at the graphs helped me ( I'm a hands on/visual learner). They have all kinds of strategy calculators I found helpful. One below is for basic long calls. Im sure someone else has some good calculator links they could share.
Weekend with no kiddos and wife, whew I'd be so stoked, and then so bored, and then staring down all the things I know I need to get finished at the house. Enjoy!
https://www.optionsprofitcalculator.com/calculator/long-call.html
Weekend with no kiddos and wife, whew I'd be so stoked, and then so bored, and then staring down all the things I know I need to get finished at the house. Enjoy!
https://www.optionsprofitcalculator.com/calculator/long-call.html
Thanks! Will check it out.
Rice and Fries said:Take it from me, I've gotten destroyed cause I didn't set stops. I actively watched my positions go down in flames. Set stops on the trades.FJ43 said:
McInnis....question since I know you and a few others are active Options traders.
I am pretty much a shares and covered calls player short, swing and long. I am tired of missing out on all the fun some of you guys have with the options trades so dipped my toes in to watch the fluctuations with decay and rise with the stock performance, time horizon, etc. Not that I want to lose money on my toe dipping but just bought a limited number of calls as 'education' whether I lose or not. Cheap hands on knowledge.
Are you setting stops immediately when you buy options? If so are there some parameters you are using differently than shares purchases?
Does this apply to naked calls too? I've seen them fluctuate and drop a huge percentage, and then rebound the next day or two like it was nothing.
I think I need to get better at understanding when it's broken a support or technical level and then understanding where that is in relation to the options price and setting stops for that.
MaroonDynasty said:McInnis 03 said:
All I know is if Biden wins, short oil, long renewables
If Biden wins, oil drops 30% immediately.
Not so sure. A ban on fracking would be bullish for oil.
LADR running a bit
Bob Knights Paper Hands
Joined:
Dec 22, 2010
Posts:
11,968
How long do you want to ignore this user?
Big volume on MGNI, jumped almost to $10. Still holding out for 12+, but damn it feels good to be a gangsta.
AgsnFly said:MaroonDynasty said:McInnis 03 said:
All I know is if Biden wins, short oil, long renewables
If Biden wins, oil drops 30% immediately.
Not so sure. A ban on fracking would be bullish for oil.
How? Sure, it would make the price per barrel and price at the pump go up, because companies aren't going to have the ability to extract oil. That doesn't mean US Oil Comaony stocks would rise, they'd plummet. It would ruin the Us oil industry while making us dependent on foreign oil.
Yeah, it applies to nakeds as well. Its tough to see them fluctuate up and down wildly. Lets take RKT for example...jwhitlock3 said:Rice and Fries said:Take it from me, I've gotten destroyed cause I didn't set stops. I actively watched my positions go down in flames. Set stops on the trades.FJ43 said:
McInnis....question since I know you and a few others are active Options traders.
I am pretty much a shares and covered calls player short, swing and long. I am tired of missing out on all the fun some of you guys have with the options trades so dipped my toes in to watch the fluctuations with decay and rise with the stock performance, time horizon, etc. Not that I want to lose money on my toe dipping but just bought a limited number of calls as 'education' whether I lose or not. Cheap hands on knowledge.
Are you setting stops immediately when you buy options? If so are there some parameters you are using differently than shares purchases?
Does this apply to naked calls too? I've seen them fluctuate and drop a huge percentage, and then rebound the next day or two like it was nothing.
I think I need to get better at understanding when it's broken a support or technical level and then understanding where that is in relation to the options price and setting stops for that.
I bought 4 October 30th RKT $24 calls for $1.50 and then totally watched them erode to be worth $0.20 per option. There's hardly any chance now that those options will ever get close to the original purchase price. I wish I had set stops at $0.75 so I'd only lose 1/2 of the funds. Now its like do I sit there and hope they bounce or watch them erode to zero? I think the bigger strategy is all about capital perservation in terms of I could have easily take the $0.75 per RKT option sell and moved them into $10 March MGNI calls. Now I can't buy dog shat with the $60 bucks i'd get from selling them.
Im obviously still very much noob status and not sure how to have OA1 my way out of that trade but it's all learning experiences (as painful as they are). I'm definitely sitting out through the election and hoping to just learn a bit more and gain discipline.
Overall, I've probably lost $5K this year on option trades from:
1. Not selling when I should have cause I was greedy
2. Not getting out of bad trades sooner
3. Dad dicked by the market movers on stupid things like SLV options.
Don't get me wrong, I have made some cash on options too, but it still hurts to think "I could have just not been dumb and put that $5k into VOO/SPY"
Someone with a better memory than my sleep-deprived brain: didn't OA talk about selling covered calls on MGNI at 10? Premium on the Nov and Dec calls ain't bad...
I think that was mentioned but last word on MGNI from OA a few days ago was forget it and he will tweet when it hits $11.Maximus_Meridius said:
Someone with a better memory than my sleep-deprived brain: didn't OA talk about selling covered calls on MGNI at 10? Premium on the Nov and Dec calls ain't bad...
Bob Knights Paper Hands
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All sectors but tech and airlines opened green.
CHW, MARA, and TSLA... why are you going the wrong way when it feels so good to go up?
CHW, MARA, and TSLA... why are you going the wrong way when it feels so good to go up?
Bob Knights Paper Hands
Joined:
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Posts:
11,968
How long do you want to ignore this user?
FJ43 said:I think that was mentioned but last word on MGNI from OA a few days ago was forget it and he will tweet when it hits $11.Maximus_Meridius said:
Someone with a better memory than my sleep-deprived brain: didn't OA talk about selling covered calls on MGNI at 10? Premium on the Nov and Dec calls ain't bad...
Sorry for mentioning it. I broke the dam.
I haven't had success setting stops on immediate options buys. Options are so viciously volatile that in my experience I've gotten pounded any time I set an immediate stop. You can't set that tight if that's your plan. You have to let it play out. At least, that's my experience with ATM and OTM plays. With ITM plays it'll give you a softer buffer and is really probably the best way to use options in a cash flow manner. OTM and ATM plays swing so incredibly hard that it's damn near impossible for me to set a good behaving stop.FJ43 said:
McInnis....question since I know you and a few others are active Options traders.
I am pretty much a shares and covered calls player short, swing and long. I am tired of missing out on all the fun some of you guys have with the options trades so dipped my toes in to watch the fluctuations with decay and rise with the stock performance, time horizon, etc. Not that I want to lose money on my toe dipping but just bought a limited number of calls as 'education' whether I lose or not. Cheap hands on knowledge.
Are you setting stops immediately when you buy options? If so are there some parameters you are using differently than shares purchases?
What I will say is I've had better success when doing ATM and OTM options by legging out at targeted percentile gains. Say I buy 8 contracts of something and it moves 33% in my favor, I'm selling 25% of what I have there. If it moves another percentage in my favor, let's say 33% again, I'll sell another 25% and then see what happens with the remainder. Or maybe I'll buy 4 contracts, it moves in my favor, sell 3 to take the risk off and then let 1 ride.
So much depends on your timeframe (weeklies vs monthlies vs leaps) and your strike (itm, atm, otm) that no one strategy I've found works everywhere with options.
I can tell you my bad habits though:
Not being patient with them, selling them too early before the move I felt was coming came
Buying strikes with not enough time
Buying STUPID STUPID STUPID OTM naked options
Taking risk off on hedges, if you're hedging, let it ride, it's there to protect you
I'm sure there are more......
***If this post is on Business and Investing, take it with a grain of salt. I am wrong way more than I am right (but I am less wrong than I used to be) and if you follow me you will be too.***
B&I Key:
ETH - Extended Trading Hours --- RTH - Regular Trading Hours
ORH - Opening Range (1st 30min) High --- ORL - Opening Range Low
R1, R2, R3 - Resistance 1, 2, or 3 --- S1, S2, S3 - Support 1, 2 or 3
B&I Key:
ETH - Extended Trading Hours --- RTH - Regular Trading Hours
ORH - Opening Range (1st 30min) High --- ORL - Opening Range Low
R1, R2, R3 - Resistance 1, 2, or 3 --- S1, S2, S3 - Support 1, 2 or 3
MGNI going for 10
Thanks very much and great info for me. I have seen already how quickly OTM can fluctuate and drive you nuts without the above understanding. Also good advice on the drawdown on exposure at varying levels. Really appreciate the response.McInnis 03 said:I haven't had success setting stops on immediate options buys. Options are so viciously volatile that in my experience I've gotten pounded any time I set an immediate stop. You can't set that tight if that's your plan. You have to let it play out. At least, that's my experience with ATM and OTM plays. With ITM plays it'll give you a softer buffer and is really probably the best way to use options in a cash flow manner. OTM and ATM plays swing so incredibly hard that it's damn near impossible for me to set a good behaving stop.FJ43 said:
McInnis....question since I know you and a few others are active Options traders.
I am pretty much a shares and covered calls player short, swing and long. I am tired of missing out on all the fun some of you guys have with the options trades so dipped my toes in to watch the fluctuations with decay and rise with the stock performance, time horizon, etc. Not that I want to lose money on my toe dipping but just bought a limited number of calls as 'education' whether I lose or not. Cheap hands on knowledge.
Are you setting stops immediately when you buy options? If so are there some parameters you are using differently than shares purchases?
What I will say is I've had better success when doing ATM and OTM options by legging out at targeted percentile gains. Say I buy 8 contracts of something and it moves 33% in my favor, I'm selling 25% of what I have there. If it moves another percentage in my favor, let's say 33% again, I'll sell another 25% and then see what happens with the remainder. Or maybe I'll buy 4 contracts, it moves in my favor, sell 3 to take the risk off and then let 1 ride.
So much depends on your timeframe (weeklies vs monthlies vs leaps) and your strike (itm, atm, otm) that no one strategy I've found works everywhere with options.
I can tell you my bad habits though:
Not being patient with them, selling them too early before the move I felt was coming came
Buying strikes with not enough time
Buying STUPID STUPID STUPID OTM naked options
Taking risk off on hedges, if you're hedging, let it ride, it's there to protect you
I'm sure there are more......
Mgni at 10
My reddest day of the year.... save me NIO!
Great feedback, thanks guys!
I neglected to mention on stops......you'll often hear "don't let a winner turn into a loser".....it's great advice, but if done incorrectly I think it cancels itself out.
Quick scenario:
Buy some $1.50 call, it quickly runs to $1.70.
What do you do? Cross fingers, let it run? Set stop at $1.50? Sell some, then set a stop?
A) Cross fingers - This often causes pain, it'll run to $1.75, then pull back to $1.30, then you're left wondering WTF. This is a common phenomenon with OTM calls.
B) Set stop at $1.50 - 20 minutes in you probably get stopped out for a break even on the ebbs and flows.
C) Sell a little at $1.70 - set a stop on what's left. Now you've made some profit, and worst case you get break even on what's left. This can let winners run a bit.
Again, this depends on strike and time. OTM weekly, you're likely going to see A or B happen quickly, C is likely best here. ATM or ITM monthly or leap, you could do any with some confidence......
Again, nothing seems to work all the time with these and that's why I think you have to find your niche and run it, or have a plan for each setup you're using.
Quick scenario:
Buy some $1.50 call, it quickly runs to $1.70.
What do you do? Cross fingers, let it run? Set stop at $1.50? Sell some, then set a stop?
A) Cross fingers - This often causes pain, it'll run to $1.75, then pull back to $1.30, then you're left wondering WTF. This is a common phenomenon with OTM calls.
B) Set stop at $1.50 - 20 minutes in you probably get stopped out for a break even on the ebbs and flows.
C) Sell a little at $1.70 - set a stop on what's left. Now you've made some profit, and worst case you get break even on what's left. This can let winners run a bit.
Again, this depends on strike and time. OTM weekly, you're likely going to see A or B happen quickly, C is likely best here. ATM or ITM monthly or leap, you could do any with some confidence......
Again, nothing seems to work all the time with these and that's why I think you have to find your niche and run it, or have a plan for each setup you're using.
***If this post is on Business and Investing, take it with a grain of salt. I am wrong way more than I am right (but I am less wrong than I used to be) and if you follow me you will be too.***
B&I Key:
ETH - Extended Trading Hours --- RTH - Regular Trading Hours
ORH - Opening Range (1st 30min) High --- ORL - Opening Range Low
R1, R2, R3 - Resistance 1, 2, or 3 --- S1, S2, S3 - Support 1, 2 or 3
B&I Key:
ETH - Extended Trading Hours --- RTH - Regular Trading Hours
ORH - Opening Range (1st 30min) High --- ORL - Opening Range Low
R1, R2, R3 - Resistance 1, 2, or 3 --- S1, S2, S3 - Support 1, 2 or 3
Is anyone continuing to add MBIO, or is this wait and see mode?
I'm in wait and cry mode
Awesome. Again many thanks for all the feedback in detail on this. Looking forward to getting in the water on this aspect of the markets.
If Bidens win, buy USO and short shale co (OXY). Canadians' SU and CNQ are already extremely attractive investments.txaggie_08 said:AgsnFly said:MaroonDynasty said:McInnis 03 said:
All I know is if Biden wins, short oil, long renewables
If Biden wins, oil drops 30% immediately.
Not so sure. A ban on fracking would be bullish for oil.
How? Sure, it would make the price per barrel and price at the pump go up, because companies aren't going to have the ability to extract oil. That doesn't mean US Oil Comaony stocks would rise, they'd plummet. It would ruin the Us oil industry while making us dependent on foreign oil.
OA's opinion and thoughts on this page of this thread.McGibblets said:
Is anyone continuing to add MBIO, or is this wait and see mode?
https://texags.com/forums/57/topics/2721405/2361
Wait and see for me.
I have moved to a mental stop model. I generally buy ATM/ITM calls or puts to reduce volatility, but I will go OTM if its a vertical depending on price, etc.
I am okay with an option losing 50% if there is time AND I think it will turn around. If there is no evidence of turn-around, regardless of price, cut. On the flip side, I sell when the stock has made the move I was looking for or when I think it is starting to peter out. I miss out on a theoretical max profit in a lot of cases doing this, but I'm not gambling / hoping.
By sell, I mean scale out. If I wake up and a stock gaps up 5%, I will just profit take normally.
I am okay with an option losing 50% if there is time AND I think it will turn around. If there is no evidence of turn-around, regardless of price, cut. On the flip side, I sell when the stock has made the move I was looking for or when I think it is starting to peter out. I miss out on a theoretical max profit in a lot of cases doing this, but I'm not gambling / hoping.
By sell, I mean scale out. If I wake up and a stock gaps up 5%, I will just profit take normally.
Stimulus stand off
Not seeing any news on why SNSS is up 13%. Just normal biotech volatility?
.
GOCO
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