Trade Idea: Digging In For An Easy Options Trade [View article]
You've asked the golden ticket question. I have a "stable" of stocks as my go to source, and I also monitor the biggest gainers/losers on the day to see if I can exploit extreme weakness or strength. I look at about 100 charts a day/night to see what is at support, what is at resistance etc. As a for instance, AAPL printed a gravestone doji on the day which could represent the reversal candle. As far as the November AAPL goes, I go as low as possible to get a decent premium for the least risk possible. I'm down in the 560/555 range for .95...here's why. Look at the chart of PCLN on earnings and the day after. That could just as easily be AAPL. Just sayin', don't let juicy premiums lull you into feeling "safe". Your job is to make the most money you can for the least risk available.
Trade Idea: Digging In For An Easy Options Trade [View article]
While that is a viable idea, it ties up a lot of capital for a few months. You have to consider opportunity cost when evaluating trading ideas, and to do this in any quantity would eat up a ton of buying power.
Trade Idea: Digging In For An Easy Options Trade [View article]
Hi Sanford, Straddles and or strangles would are also great ways to take advantage of a larger move...I just want to see a tad bit more weakness in the overall markets before adding to my positions. I don't want to be the early bird to that party :)
Trade Idea: Digging In For An Easy Options Trade [View article]
Hi Russell, I'm going out on my own limb here and the markets will do what they will - but I am expecting a pullback to happen around August 20th. This is based off of my Fibonacci time study.
Trade Idea: Digging In For An Easy Options Trade [View article]
Hi TwistTie, you must have options approval of at least a tier 2 in your account. It requires a form submitted to your broker, and you are able to fax it to them. It generally takes 24 hours for approval. As a word of advice, I'd avoid using the word novice when submitting the application :)
Margin: Your margin is the spread less the credit - this is a $5 spread, less the .75 credit so you would be tying up $425 per each contract you take in the spread. If you did a 5 lot it would tie up $21.25.
I am EXTREMELY glad you understand the trade - it is my style to explain things in "normal people" terms LOL!
Trade Idea: Digging In For An Easy Options Trade [View article]
Hi Sanford, I have two methods of early exit. If I get 80% of the credit and the market looks iffy, I will close down the position. Other than that, if the spread goes to .05, even the week of expiry, I will close. Thanks for your kind words and thanks for reading!
Trade Idea: Digging In For An Easy Options Trade [View article]
Trade Idea: Digging In For An Easy Options Trade [View article]
Trade Idea: Digging In For An Easy Options Trade [View article]
Trade Idea: Digging In For An Easy Options Trade [View article]
Trade Idea: Digging In For An Easy Options Trade [View article]
Trade Idea: Digging In For An Easy Options Trade [View article]
Trade Idea: Digging In For An Easy Options Trade [View article]
Straddles and or strangles would are also great ways to take advantage of a larger move...I just want to see a tad bit more weakness in the overall markets before adding to my positions. I don't want to be the early bird to that party :)
Trade Idea: Digging In For An Easy Options Trade [View article]
I'm going out on my own limb here and the markets will do what they will - but I am expecting a pullback to happen around August 20th. This is based off of my Fibonacci time study.
Trade Idea: Digging In For An Easy Options Trade [View article]
Margin: Your margin is the spread less the credit - this is a $5 spread, less the .75 credit so you would be tying up $425 per each contract you take in the spread. If you did a 5 lot it would tie up $21.25.
I am EXTREMELY glad you understand the trade - it is my style to explain things in "normal people" terms LOL!
Thanks for reaching out!!
Trade Idea: Digging In For An Easy Options Trade [View article]