Day Trading Options - How to choose the right strike?

Discussion in 'Options' started by tradinginaz, Sep 29, 2015.

  1. destriero

    destriero

    Baller. You went long near 110.50. Good call, Bro. Good call.
     
    #11     Sep 29, 2015

    • AAPL at $109.06
    • Bought 2 October 02, 2015 113.00 calls at $0.26


    IMO ...... That is a good trade and you did choose the right strikes, that is my sort of trade. I would exit when (if) it returns a profit - if not let it expire worthless. I would shoot for a 2x trade or better. Wednesday will make or break this trade. An alternative strike would be the 112.00 for $0.48, buy one contract to keep maximum loss at about $50.00.

    Good luck.




    :)
     
    #12     Sep 29, 2015



  2. In today's volatile market that $1.50 from entry to market close is jack-shit with three days expiry.




    :)
     
    #13     Sep 29, 2015
  3. destriero

    destriero


    4.50 from the strike. I will bet you or baller any amount that AAPL doesn't touch his strike by Friday 4PM.
     
    #14     Sep 29, 2015




  4. It doesn't have to. If Wednesday and/or Thursday is a strong day for AAPL those 113.00 calls will pay-off, even if AAPL is below $113.00.






    :)
     
    #15     Sep 29, 2015
  5. J_Smith

    J_Smith

    No bet, as I hopefully won't have it then :)

    As OTM rightly said, worth a gamble near the close to get rid of at the open if aapl gaps up - prob I see is that time decay has really kicked in since close yesterday, as can be clearly seen on the 2 day chart.

    I have being trying out some daytrades recently with aapl options, and they are fine once you don't get sucked in and hold if they lose after entry, for it is easy to hold as the risk is small, but it is bad trading - if you are daytrading then you daytrade, that is my way of thinking - most times I have held during the day I have lost by end of day, any time I have daytraded I have won by end of day - I am finding that time decay near end of day is a killer - for current week, monday is ok, tue is the start of fast kick in, as per today, and next few days will be worse - but, as the option price is derived from the stock price, stock price is king, so, that is what I watch and trade, the options are just my best way to keep my risk small for now, and so far they are well worth trading once you get a few trades under your belt to get the feel for things.

    BTW, I have an interesting chart for you experts, something I am trying to crack - will post a section :)and see what ye think, especially the spread
    traders.

    Another point, and that is my current view for broad market is more down, so any longs are higher risk that shorts right now, but again, stock price is king - but is always more risky if you trade against the big players, which I think are going to drive this market down, but that is just my opinion - I trade what I see, but keep my opinion in the back of my mind at all times, so when I am wrong I can kick myself in the ass and say, you fool, you are not following the big boys again :)

    J_S
     
    Last edited: Sep 29, 2015
    #16     Sep 29, 2015
  6. destriero

    destriero

    I never stated it did.
     
    #17     Sep 29, 2015
  7. J_Smith

    J_Smith

    What do you guys think of these strikes?

    15:00:30

    White line - sell @ 0.42
    Blue line - buy @ 0.41

    Net credit = 0.01


    15:27:30

    White line - buy @ 0.21
    Blue line - sell @ 0.475

    Net credit = 0.265

    Result = credit 0.275

    Am I reading this correctly !

    J_S

    Screen Shot 09-29-15 at 08.01 PM.PNG
     
    #18     Sep 29, 2015





  8. destriero ........ You clearly have no interest in this thread with posts like those. Let the market have the final word on the AAPL $113.00 weekly calls.





    :)
     
    Last edited: Sep 29, 2015
    #19     Sep 29, 2015
  9. J_Smith

    J_Smith

    Here are 2 more strikes.

    Scenario 1

    10:33.30

    White line - buy @ 1.18
    Blue line - sell @ 4.26

    Net credit = 3.08

    12:11:30

    White line - sell @ 3.20
    Blue line - buy @ 3.32

    Net debit = 0.12

    Result = 3.08 - 0.12 = credit 2.96

    Scenario 2

    10:33.30

    White line - buy @ 1.18
    Blue line - buy @ 4.26

    Net debit = 5.44

    12:11:30

    White line - sell @ 3.20
    Blue line - sell @ 3.32

    Net credit = 6.52

    Result = 6.52 - 5.44 = credit 1.08

    Am I reading this correctly again!

    J_S

    Screen Shot 09-29-15 at 08.50 PM.PNG
     
    #20     Sep 29, 2015