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| four 5,087 posts msg #125378 - Remove message |
10/2/2015 10:39:29 PM http://www.futuresmag.com/2010/05/12/top-4-options-strategies-beginners?page=3 of interest? |
| Mactheriverrat 3,178 posts msg #125381 - Remove message |
10/3/2015 2:31:55 AM @Karenna IMHO- Look at the AMBA median bollinger band(20,2) line which is down trend. Which is really the 20 day MA . Until it breaks that downtrend its still down. Such as the 20 day EMA. Just saying. We learn from our past. |
| mahkoh 1,065 posts msg #125383 - Remove message |
10/3/2015 6:14:23 AM Mahkoh, That was the long answer. The short answer is -- "premiums are favorable". :>) Premiums are favorable, that must mean they are favorable in relation to other premiums or towards a metric. Do you filter for this in some way? I use return on margin as a measure when evaluating possible entries. As I sell cash secured at the money puts this leads me to securities that are not too far from the option strike and are reasonably volatile. I'll consider those where ROM is over 7 - 10 % (depending on where we are in the option cycle, the closer to expiration the lower the premiums) and below 20 %. If ROM is over 20 % something is up, premiums never get elevated without a reason. The options I sell are 4 to 6 weeks out and I do not trade earnings. Once in the trade I calculate time value to margin, when this moves below 2 % I'll usually look to close out if the trade goes against me. At this point my option is so far out of the money that I'm essentially holding the stock and that wasn't my intention when I opened the position. When the option has lost 40 % of it's value I'll take profits, once I'm 15 days in the trade I'll happily close at break even. |
| karennma 8,057 posts msg #125396 - Remove message |
10/4/2015 12:40:28 PM Re: Mactheriverrat 534 posts msg #125381 - Ignore Mactheriverrat 10/3/2015 2:31:55 AM @Karenna IMHO- Look at the AMBA median bollinger band(20,2) line which is down trend. Which is really the 20 day MA . Until it breaks that downtrend its still down. Such as the 20 day EMA. Just saying. We learn from our past. ================================= @ Mac, You're absolutely correct. Once AMBA crossed the 20 EMA on 08-11-15, it never ... *never* turned back. Initially, I thought it was a "set-up" for a huge rally. When I finally became skeptical, I even posted on 08-31-15, that I had my doubts & subsequently cut my position in 1/2 prior to earnings. Thank g*d, I had the sense to at least do that! Sad, sad, sad. It'll take me a long time to make up that loss. :>( |
| karennma 8,057 posts msg #125397 - Remove message |
10/4/2015 12:59:33 PM Crossing the river of death, below EMA(20). DEATH Spiral of AMBA. Also, a double-top.  |
| karennma 8,057 posts msg #125404 - Remove message |
10/5/2015 10:34:25 AM karennma 5,530 posts msg #125366 10/2/2015 1:57:32 PM BAC (current price $15.14) STO (40) 10-09-15 $14.00 Puts @ .04 (+$160) BTO (5) 10-09-15 $15.oo Call @ 0.36 (-$180) ================ Sell (5) 10-09-15 $15 Calls @ 0.72 = $360 (doubled my money, gain $180) |
| karennma 8,057 posts msg #125405 - Remove message |
10/5/2015 10:40:51 AM 10/5/2015 10:34:25 AM karennma 5,530 posts msg #125366 10/2/2015 1:57:32 PM BAC (current price $15.14) STO (40) 10-09-15 $14.00 Puts @ .04 (+$160) BTO (5) 10-09-15 $15.oo Call @ 0.36 (-$180) ================ Sell (5) 10-09-15 $15 Calls @ 0.72 = $360 (doubled my money, gain $180) This "ask" on the $14 puts is only 0.01, so, the $160 is still in my pocket. Net gain $180 + $160 = $340. |
| karennma 8,057 posts msg #125407 - Remove message |
10/5/2015 11:01:21 AM karennma 5,532 posts msg #125370 10/2/2015 2:44:33 PM BAC (current price $15.14) STO (40) 10-09-15 $14.00 Puts @ .04 (+$160) BTO (3) 10-16-15 $15.00 Calls @ .55 (-165) ===================================== Ha! I forgot! I changed the BTO order on Friday to 10-16-15 which is now 0.68 (worth $204). I'd still have a gain, but only $39. After commissions, not much. Net gain drops to $199 LESSON LEARNED! Stick with the short term, current week! |
| karennma 8,057 posts msg #125408 - Remove message |
10/5/2015 11:24:00 AM Ditto! You're gonna get screwed on the 2 week options. Better to trade current week. Ask $176 on DOW 10-16-15s Ask $200 on DOW 10-09-15s karennma 5,533 posts msg #125367 10/2/2015 2:33:15 PM DOW - current price $44.10 STO (20) 10-09-15 DOW 40 Puts @ .08 = +160 BTO (1) 10-16-15 DOW 44.00 Call @ 1.34 = -134 |
| karennma 8,057 posts msg #125409 - Remove message |
10/5/2015 11:25:51 AM Ha! DOW must've moved up while I was typing ... Now 10-16-15s are $213!! Kewl! |
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