I suspect Jeff is suffering from the VIX effect? http://finance.yahoo.com/q/bc?s=^VIX&t=5d&l=on&z=m&q=l&c= The vix here started the morning at 19.55 and closed at 19.55. I have found that under VIX 25, long buying directional does not work well, or enough. You need a different strategy. I´m working on my choices. The lower the VIX number the less volatile the market and at Vix 17, to Vix 12 is practically dead in the water. You can´t trade direct buying calls, or puts. When in the BULL trend, the trend tends to rescue your errors if you hang in there a number of days. But right now we are range bound. Going sideways. Thus that VIX 19.55 number is not high enough to permit you to make money on trades that are long calls, or puts. Over VIX 25 your puts will start to make money like a bandit. Not only can you not cover your bid ask spread and commissions, any movement is so shallow as to force your stop/loss to work. Forget the stop loss and maybe just set dollar and cents increments to double up, or whatever you are doing.
Thanks Jeff, I guess I should have expected a down day like this with no put protection, I got trounced. Thanks, I appreciate the advice. Looking in terms of % does make sense. I think I was overconfident on market direction, a recipe for disaster. Dave rockn, "Those are frightening prices on GOOG and AAPL!" I can remember in the 1990's paying $1,600 for EBAY options and at the time I thought that I was out of my mind! I also remember closing them out at $550 and being happy to get that. Since the 1990's, I now think small. SPY options bought between 1.25 to 2.50 and sold +25% to +57% higher (depending on signal type), or stopped out at -20% to -40% under Buy 1. "My hat is off to you being able to deal with those kind of prices and the best of success." Jeff [/QUOTE]
I was basing the long going into earning and also the hype and momentum surrounding aapl on this run. I was figuring on a break with the rest of the market in may selling. I do think the break down that started last week, I didn't think there would be more selling today obviously. I think aapl is still very strong, it was just profit taking, and the stops going off at different support levels (guessing)
The attached 5 year chart of the VIX (with monthly candles) is an interesting way to look at volatility. It appears that whenever the VIX drops to 15 for a month or two, it then starts to head back up. I wouldn't read too much into this, but if nothing else its at least a little interesting.
Had a SBUX put spread on Fri at the close worked out nicely.. Today I put a reverse iron condor for CREE, cost me 1$, will see if can get 1.50 after the earnings. Also got YOKU reverse iron condor for June, SNDK, FSLR,..NFLX for earnings,,will be putting more on....but need for CREE to move up or down tomorrow after market closes...my bias is UP, but i'm still in a neutral trade.... YOKU was difficult to get in, took me 15 min, but was able to put a reverse iron condor for 1.20, with $2 max profit... stop is 50% loss of the combined options value.... I think CREE will go higher then the triple top and get a short squeeze after that, just like it happened to SVU, on SVU however i only got long call spread right before the earnings, paid 20c for it, sold for 60c... Anyhow,,,if anyone knows how to adjust a reverse iron condor, please let me know, so far got nothing to but take a 50% loss, can't come up with any adjustment ideas.....thanks in advance..
I´m going to have to look that up on the reverse iron condors. They sound cheap and OTM. That you can make a profit on it, is interesting. Too bad you didn´t post the actual trades to look at how you were choosing them.
Bad opening this morning. I noticed I was still long PUTS. Went to HELP desk in TOS after looking at my trades and they confirmed I was LONG 6 contracts in PUTS. Must have hit the buy instead of the sell, or the ASK instead of the BID. Asked the desk guy to sell them quick at the opening. Ended up losing a bit I think now on the commissions, instead of a small profit. Still I´m out of them and not too expensive I hope. The 3 contracts I must have bought yesterday would have been a bit more expensive too. Even though the 3 contracts I was holding were paying there way. Maybe I´m too old for this stuff?
no trader in the world can help you if you are aren't at minimum aware of your own position. Not trying to be critical but again you are struggling with the basics. Instead of telling us about your nap, tell us your position then maybe atticus or someone else can try to help you. So what is your position right now, today?
I´m long 5 QQQ 67 Calls I expect them to go up today and tomorrow. At least to 67 strike, maybe more? You got me curious. If have it right, I invested before commissions $985. With rising CALLS they are currently worth $820 and should be going up for a while.