sts7049 said:

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what i haven't quite grasped yet is how (or when) you make money on them.

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Sell whenever you choose. I go net free on them sometimes. Close them the same way you open, i.e. McInnis' screenshot. But when they blow through i usually let them expire and td will just pay you the difference if both strikes expire itm. In my experience you can never sell them for max profit before expiration, you gotta let every last penny of premium rot away

hedge said:

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Any lithium stocks to jump on lads ?

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you in WWR yet?

NRD09 said:

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sts7049 said:

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what i haven't quite grasped yet is how (or when) you make money on them.

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Sell whenever you choose. I go net free on them sometimes. Close them the same way you open, i.e. McInnis' screenshot. But when they blow through i usually let them expire and td will just pay you the difference if both strikes expire itm. In my experience you can never sell them for max profit before expiration, you gotta let every last penny of premium rot away

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I've found the same thing, that the only way to get max profit is to let them expire and be above (or below for puts) both strikes.

Ferris Wheel Allstar said:

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get them to walk you through it. I will PM you the contact that I did mine with.

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That is very much appreciated.

Colt98 said:

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I piggy backed a small entry into TRXC with you. First spread for me. When is the ideal time to close it out. The Thursday before the exp date?

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Almost missed this.

It's up to you. I've noticed with the TRXC trade that the different strikes are just going NUTS at times due to demand so the value of the spread really fluctuates.

Complete honesty here, I went net free on the trade today by closing out half of my spreads so I can leave the other half net free.

There really is no "ideal time" as it's all up to the person holding it. I don't know your cash needs, etc. As the price of the equity moves in your favor, the closer to max value your spread will get. Ie: TRXC if it goes to 15 in the next week or two, that $2 spread from 4/6 will get to about $1.50-$1.75. If this happens, I tend to close the thing because it's a month less I have to wait to close it. Otherwise, if the price stays close (ie: TRXC hovers at $6-$7) each day brings you more value. Closing it day of expiry would be most ideal in that case.

I had an OSTK 80/90 spread on that I closed today that was set for 2/19. It was at $9 on a $10 spread. I didn't want to wait another week with teh volatility I saw in the QQQ"s the last two days.

It just all depends.

P.S. I never hold a spread into expiry, period. I always close them early as I don't want some crazy **** to happen to me. Ie: You have an aapl 137/140 for a friday, and aapl closes at 140.09...but then drifts lower AH and settles at 139.89. That other broker won't exercise the short call so it creates some hassle on your side, or at least it can depending on your cash situation.

I always always always close my flys and spreads. It's just part of my rule set. It's not for everyone.

Yeah, I think I would too.

"Mrs. Lippy's hammer is GREEEEEN"

This is humbling.

StrawberryFields said:

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RigsTx said:

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I downloaded TOS the other day and haven't had time to familiarize myself with it yet. It is daunting for a pretty much newbie. I'm hoping after OA's seminar at the end of the month along with reading the other thread about TOS setups that I'll be a little less intimidated.

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TDA has great education and offers webinars on TOS and how to best utilize all the features.

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They also offer free one on one training sessions where they log onto your TOS and show you how the platform works. I did an hour session the other day and we went through every single tab in depth. Very informative.

StrawberryFields said:

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NRD09 said:

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sts7049 said:

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what i haven't quite grasped yet is how (or when) you make money on them.

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Sell whenever you choose. I go net free on them sometimes. Close them the same way you open, i.e. McInnis' screenshot. But when they blow through i usually let them expire and td will just pay you the difference if both strikes expire itm. In my experience you can never sell them for max profit before expiration, you gotta let every last penny of premium rot away

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I've found the same thing, that the only way to get max profit is to let them expire and be above (or below for puts) both strikes.

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So one of the horror stories I've heard was on a Put Spread of some sort. At close the Spread was within the acceptable range and the trader believed they had pocketed the $1.70 premium.

However, after hours trading on Friday moved the price of the stock into the money and the option was exercised on Saturday morning. Instead of a 1.70/gain, the trader had a $3MM margin call on stock that had been put to them.

RigsTx said:

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StrawberryFields said:

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NRD09 said:

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sts7049 said:

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what i haven't quite grasped yet is how (or when) you make money on them.

---

Sell whenever you choose. I go net free on them sometimes. Close them the same way you open, i.e. McInnis' screenshot. But when they blow through i usually let them expire and td will just pay you the difference if both strikes expire itm. In my experience you can never sell them for max profit before expiration, you gotta let every last penny of premium rot away

---

I've found the same thing, that the only way to get max profit is to let them expire and be above (or below for puts) both strikes.

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So one of the horror stories I've heard was on a Put Spread of some sort. At close the Spread was within the acceptable range and the trader believed they had pocketed the $1.70 premium.

However, after hours trading on Friday moved the price of the stock into the money and the option was exercised on Saturday morning. Instead of a 1.70/gain, the trader had a $3MM margin call on stock that had been put to them.

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OOF

with jokes like that....

$30,000 Millionaire said:

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apologies for not posting much - I have had a 2 day migraine.

ps WTF happened to pot stocks today?

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Not fun. Hope it subsiding for you.

Rice and Fries said:

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McInnis 03 said:

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Be kind to your elders.

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Old man winters over here.

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FJ43 said:

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MBIO to the Tex Ags thread these days...

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For those in WWR, this might not apply since Fibonacci is less useful on short term trends, especially in the trading range WWR has shown over the last 6 months.. but if I drew the retracement correctly based on the large dip from October, then this week has mostly been between the .382 and .5 levels. It finished today below the .382 level, so if it doesn't bounce back above it tomorrow, it could pinball between the .382 and .236 levels. Which would mean a price range of $7.23 and $9.38. If it goes back above, then the .5 retracement is $11.13 and .681 retracement is $12.86.

Of note, the 21 period StDev Channel has a lower value of $8.2 which was where OA said it could drop to.

I'm probably doing this all wrong.

time to hedge, march expiry.

TELL with a strong day and continuation AH. Over $4!

mazag08 said:

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For those in WWR, this might not apply since Fibonacci is less useful on short term trends, especially in the trading range WWR has shown over the last 6 months.. but if I drew the retracement correctly based on the large dip from October, then this week has mostly been between the .382 and .5 levels. It finished today below the .382 level, so if it doesn't bounce back above it tomorrow, it could pinball between the .382 and .236 levels. Which would mean a price range of $7.23 and $9.38. If it goes back above, then the .5 retracement is $11.13 and .681 retracement is $12.86.

Of note, the 21 period StDev Channel has a lower value of $8.2 which was where OA said it could drop to.

I'm probably doing this all wrong.

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see attached.

I left the resistance line I drew a week or so ago.

$30,000 Millionaire said:

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mazag08 said:

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For those in WWR, this might not apply since Fibonacci is less useful on short term trends, especially in the trading range WWR has shown over the last 6 months.. but if I drew the retracement correctly based on the large dip from October, then this week has mostly been between the .382 and .5 levels. It finished today below the .382 level, so if it doesn't bounce back above it tomorrow, it could pinball between the .382 and .236 levels. Which would mean a price range of $7.23 and $9.38. If it goes back above, then the .5 retracement is $11.13 and .681 retracement is $12.86.

Of note, the 21 period StDev Channel has a lower value of $8.2 which was where OA said it could drop to.

I'm probably doing this all wrong.

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see attached.

I left the resistance line I drew a week or so ago.

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You focusing more TOS now?