buying stocks vs. options for short term trading

Discussion in 'Options' started by stockmarketbeginner, Nov 30, 2017.

  1. spy guy

    spy guy

    my option trades sometimes last 10 minutes sometimes a week, untill i get a profit, take all profits in option trading they can go away as quick as they appear. with 3 to 4 month out strikes you have time for them to get in the green, dont limit yourself to a time frame to sell, profits tell you when to sell. all daytraders dont go to cash at market close
     
    #71     Dec 25, 2017
  2. ironchef

    ironchef

    You are printing money.:D

    In 2017, SPY went up 20%, if I knew beforehand, a 5x leverage (using margins, etc.), would net me ~100% overall?
     
    #72     Dec 27, 2017
    spy guy likes this.
  3. If you know the future, and/or are able to predict/manage it, ....you should be able to generate way more than just 100% a year.
    That estimate is being modest and conservative, to say the least.
     
    #73     Dec 27, 2017
  4. ironchef

    ironchef

    A good strategy in this bull market.
     
    #74     Dec 27, 2017
    spy guy likes this.
  5. ironchef

    ironchef

    you are correct sir. But for us small retails here, 100% return a year is mostly a pipe dream except perhaps for a few elites among us.:(

    Seasons greetings to all for a profitable 2018.
     
    #75     Dec 30, 2017
  6. spindr0

    spindr0

    Talk about knowing the future is nonsense and achieving a 100% return per year is rather Walter Mitty-ish but it's not unrealistic to achieve outsized gains in a bear market like 2000 and 2008. If you do this long enough and get comfortable with trading as well as managing risk, it's doable.
     
    #76     Dec 30, 2017
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  7. ironchef

    ironchef

    How can you trade and make a killing in 2000 and 2008 instead of been killed (like one of us here :banghead:).
     
    #77     Dec 30, 2017
  8. spindr0

    spindr0

    1) Buy & Hope doesn't work very well when the market loses 50+ pct over 18 months.

    2) DCA facilitates the recovery if/when it occurs but you still take the beating on the way down.

    3) Next in line is transitioning to cash and avoiding some/most of the above.

    4) Buy long puts or inverse ETFs or short equities and ETFs. Mix and match if you like.

    I'll give you four guesses which one leads to making a killing in 2000 and 2008. Start with #1 and you'll have it by #4 :wtf:
     
    #78     Dec 31, 2017
  9. spy guy

    spy guy

    in long downtrends i do the same thing with puts but i stick with spy options only because i am comfortable with spy
     
    #79     Dec 31, 2017
  10. ironchef

    ironchef

    OK, so when do you know when to buy puts or inverse ETF or short equities and ETF?

    And when do you reverse and start to buy calls or ETF or long equities and ETF?

    If you do know, aren't you knowing the future?
     
    #80     Dec 31, 2017