You are right. I concentrate on limited number of stocks and keep trading them. I sell covered PUT after I short it and most of the time they expire and this way I reduce the cost. So You cannot say my short cost was $90. Sometimes I make $2000 by selling covered PUTs or naked Calls in a week. This week I sold 18 covered PUT 97.5 for MCD and so the shares will be assigned and my short position will be covered. and I will start again. I had 85 naked PUT 10 for TZA sold at 9 cents which expired worthless. I had 16 naked Call 65 for ADI at $1.25 and 2 naked Call for 67.5 for $0.3 which expired worthless. So you see that I made over $3000 this week. In short, I don't short and wait. I always follow up my trades with options and when I lose money, usually I don't cover it and wait. It means I don't have short stop orders.
Xandman I was in CAG when someone started hitting the bid, they were hitting the bid at $1.65 x $1.80, size was 1500x1500 and someone keeps pounding the bid. It was the $43 Calls and soon they have sold 15,000 calls taking the bid from $1.65 down to $1.40 still smashing the Bid until the Bid is $1.30 x $1.50 yet the stock did not change. Usually the stock changes dramatically when some big whale is banging out the Bid. The end of the day was this person dumped 40,000 Calls at $1.50 average price. This happened after that buy-out group Janney decided to load up in ConAgra. What does it mean when someone keeps banging out the Bids on a stock like ConAgra, MDLZ or another big food stock? Thank's in advance!
I bought some of his Calls he sold at $1.40, I bought 300 contracts and made a little off them after a few days, what is the reason to smash the bid like that? His selling was greater than the Open Interest at the time, what can someone infer? If anyone can help me understand this I would appreciate it, still a newbie with options when I read the advanced methods used by our experts here. Why would I buy something like this when I saw someone smashing the Bid? I like the stock, the time to expiration was several months and I was hoping for a black swan once I saw Janney had joined this trade.
Covered my $98.10 $MCD swing short at $97.30. Market decline helped me pull in a couple of stubborn shorts.
Your playing tight spreads Garret, very stubborn stock like GMCR and MCD. I covered GMCR quick after smashing it on the long-run. The next two trades on GMCR, one lost $.20 and the other made $1.10. Nothing compared to all those Puts I rolled up since the $130 range. Today's Market action is weak, stocks heading back down on margin calls?
MCD is a short term buy at 91.36 or basically below 93 to 94. This is just a short term trend but long term I believe it will go down.
$GMCR did not see the yesterday afternoon sell-off that the mkt did... stable today... $MACD turning up... 55+ target by friday
Thank you for your responds. Indeed I found concentrate on a limit number of stocks was better than casting a wide net. 3 yrs ago, I also started to complement my stock trades with options. Regards,