ideas for profit taking

Discussion in 'Options' started by met1989, May 28, 2019.

  1. MarkBrown

    MarkBrown

    pro traders sell options not buy them...
     
    #11     May 28, 2019
    murray t turtle likes this.
  2. met1989

    met1989

    amazing
     
    #12     May 28, 2019
    MarkBrown likes this.
  3. smallfil

    smallfil

    You should be trading based on the stockchart and not the theoretical values you see on your computer screen. The reason this is flawed is you do not know how far a stock will run up or drop for that matter. Like someone said, "trade what you see" not what you hope for. You do not have control over the stock and how it will perform nor the profit or loss you will incur!
     
    #13     May 28, 2019
    expiated likes this.
  4. met1989

    met1989

    just out of curiosity the spread is jumping from -100 to 150 $ why is that because of the spreads?
     
    #14     May 28, 2019
  5. taowave

    taowave

    It appears the OP is trading some sort of a spread where the max loss is close to the max profit.He will be limiting his losses to apx 10% of the max loss(debit in the spread),so he has an apx 12-1 reward/risk ratio barring any adverse gaps....Seeing the position would help
     
    #15     May 28, 2019
  6. met1989

    met1989

    How did u get to that my debit was the 10% max loss ;) so why is it a 12/1 ratio?
     
    #16     May 28, 2019
  7. tommcginnis

    tommcginnis

    Enabling you to step further off a cliff
    without first insisting that you know how to pack your parachute is no kindness.

    :(
     
    #17     May 28, 2019
  8. Did not hear you say that in 2008, 2009 or the many other years of large vol spikes. Oh right, that's when you created new user ids and had to fund your depleted accounts. Joke aside, the above applies to probably 95% or more perpetual option sellers. Point being is that options are most of the times correctly priced meaning that you are selling insurance and most insurance policies are invoked at some point. Unless you write millions of policies like a large insurance firm and have large and deep long term investments you most likely go belly up on large vol spikes.

     
    #18     May 28, 2019
  9. ironchef

    ironchef

    Pro traders by definition trade for institutions and therefore write millions of contracts, selling to amateur retails like me. Me? I am looking for a winning lottery ticket. :cool:
     
    #19     May 28, 2019
    MarkBrown likes this.
  10. met1989

    met1989

    Ok .... let’s not focus on one word out of a whole question ;) thanks for who ever tried to answer !!!
     
    #20     May 28, 2019