1k to 100k

Discussion in 'Options' started by rsethura1, Apr 12, 2006.

  1. Like i mentioned, based on its HIV sales data etc, beat estimates and now trading at 62.5...tomorrow should be a good day to probably see the apr 65's make money...
     
    #31     Apr 18, 2006
  2. Chagi

    Chagi

    I personally think that this is a matter of the "haves" vs. the "have nots". Since I'm at the very beginning of building up my wealth, I can certainly relate to the individuals posting here that are wanting to build up a large trading account from trading alone.

    That said, I also realize that doing so isn't very realistic, unless one is either extremely talented or extremely lucky. Instead it's much more realistic to gradually grow one's trading account over time.
     
    #32     Apr 18, 2006
  3. I understand every ones response, but if i had say 30000 dollars and plunked it down on OTM calls, then yeah I am gambling, but i starting with 1000 dollars and i dont care if i have to catch a lucky break here or there to grow this, but the reason i posted gild was i had done my DD and saw where the stock was a week before i posted and checked out the estimates and thats why i posted gild...the options volume was also decent enough to play this. my goal was to sell this at .80, but if it stalls out at .60, i will gladly sell and take the 50%.

    May be it is gambling, but atleast i am not throwing the money randomly with out any dd. again this is just my quest and if i fail at it, so be it...
    atleast i will be happy knowing that i plunked down 1k based on DD
     
    #33     Apr 18, 2006
  4. I do not think people are picking on your DD, I thnk the choice of OTM options with 3 days to expiration and big theta and small delta, not to mention IV crush, is at least where I am coming from.

    You are doing due diligence but picking the lowest probable means to capitalize on your DD. If you felt strongly about an up move, you could have done the $60 Calls or the $60/$65 Bull Call spread which give you an even better chance for profit.

    If GILD is at $62.50 tomorrow, the $65 call does not necessarily have to budge at all given a possible crush of IV ( April IV was double MAY IV).

    The point is all the DD in the world cannot get to a profit if you choose options with the lowest probability of success. If DD helps put the odds in your favor, then also choose the option strategy that puts the odds in your favor.
     
    #34     Apr 18, 2006
  5. cnms2

    cnms2

    I see your point, but your choice of putting almost all your $1,000 into GILD out-the-money calls under the current conditions is less related to money making through trading than even this story: Man trades paper clip for house.

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1042861>

    What's your trading experience? As you could learn from Chagi's post, some beginner traders might try to emulate you and lose all their money...

    Anyway I wish you good luck, and I hope that GILD will pull you out this time.
     
    #35     Apr 18, 2006
  6. zxcv1fu

    zxcv1fu

    Wish you good luck tomorrow. The day after the earning, volatility goes down & premium decreases. The only way you will make money is if the stock moves up a lot.

    I know cause I traded earning play before. Now I know to buy more time.

    The way you put almost the whole eggs in one basket is like 1 British guy last year took all his asset & gambled in 1 hand in Vegas. He was lucky & won. I wish you the best luck too.
     
    #36     Apr 18, 2006
  7. rhogaine

    rhogaine

    Options trading can enhance on overall portfolios performance. If you stick to a few good strategies then you can be succesful. I firmly believe that it is possible. However, maintaining a sound, emotional-free approach takes discipline so you must stick to your strategies even if it is monkey-like. Sounds easy but believe me it's not. This is what seperate the "haves" from the "have nots". Trading options in this manner can be boring, but the boring approach usually leads to long-term profits. Take the time to learn and I think you will be pleased with the results.
     
    #37     Apr 19, 2006
  8. You're probably right, I could have cut down on my risk by playing the may 60 ITM calls...thanks for the honest and sincere advice. I do appreciate that...my goal is not make new folks follow me and lose money...if that is the impression this forum is having, then i will stop posting...I dont have to make money at the expense of others losing...

    may be next time when i post a play, i will post what i am playing and what would be the best conservative play as well...
     
    #38     Apr 19, 2006
  9. You're probably right, I could have cut down on my risk by playing the may 60 ITM calls...thanks for the honest and sincere advice. I do appreciate that...my goal is not make new folks follow me and lose money...if that is the impression this forum is having, then i will stop posting...I dont have to make money at the expense of others losing...

    may be next time when i post a play, i will post what i am playing and what would be the best conservative play as well...
     
    #39     Apr 19, 2006
  10. novel20

    novel20

    1 hand only...:D
     
    #40     Apr 19, 2006