Do you have a trading plan: i.e. time & price stops? If your first trade is a loss, how do you plan to recover to get to $100k? An OTM so close to expiration, a 3 day weekend and an earnings report leave no room for error ... Are you familiar with multioption's thread My Options Play? Good luck with your dare!
Once again man, you dont need to follow my picks. I am just posting my picks and you are a total liberty to ignore me. Dont you think. if you want me to explicitly state then here it is. Options have a high risk of losing money. I am not a trading advisor. Please do your due dilligence and research before making any investment.
Problem is that a 6% move with 3 days to expiration is not the only problem. Youy are relying on a move in the stock to move the option alone but you need to look at the delta and gamma and theta of this OTM option. The stock could move $2.00 and the option could still produce no gains. The news of the upgrade in price is factored into the price already so you cannot go by that alone. These kind of OTM plays are simply lottery tickets and since you are putting all your eggs in one basket, you can blow it out with just one wrong pick. If you just want to post picks and ignore any advice then I understand. However if you want to make better trades, understand the greeks of the position you are in.
I'd argue that a 6% move down is nothing, if the stock has recently moved 10%, or 15% or higher up ... Although, that is the system that I'm working to devise ...
Do you think multioption has a trading plan? If so could you explain it? From what I have seen it's high risk gambling, with no plan at all. Just buy and cross your fingers. That AMD call "trade" takes the cake.
I just read that. So the guy loses $10K+ on his position, stock is tanking, and he decides to "average down"?? I guess the thing that kind of suprises me about this is that he didn't at least utilize a different strategy, such as a strangle. I realize that pre-earnings probably isn't the greatest time to be doing so (due to high volatility inflating the price of options), but at least it would have reduced his risk. I think you're also supposed to use near-month options for strangles? The other thing is that I'm interested in trading options at some point, but I would never risk more than a certain percentage of my account on a trade. The guy just lost $10K+, and has now proceeded to throw some further money down the toilet...he either has a very large trading account, or he is bent on reducing it to zero as quickly as possible.
I just posted this on Multioption's thread: The only way I coulda bought AMD out-the-money options before the earnings announcement woulda been if I had insider information about an imminent takeover AMD, and I didn't want to miss the train. ... And I shoulda been Martha.
just curious... what is desireable about going from 1k to 100K? I never see threads with names like "$500K trading capital, $250K annual trading profits" personally, I don't understand why so many people treat the market as a gambling vehicle when it offers so much opportunity to live a life of nice wealth and free time. good luck in your quest.