anyone have PALM on their radar screen? There is a large gap from 9-23-05---- doubtful it will be filled soon-- but it could trade into said abyss -- perhaps to 30-31+ ! : only thing I don't like is how the Dec 30c did not budge much with today's decent move - of course now the vola is down and gamma up-- so maybe it's a better entry point IF you don't want the stock or ITM calls-- or LEAPS
You can't be sure, I'm sorry. I used hankster's strategy in the past, and unfortunately for me it is the strategy I lost the most money with. I'd like for others to learn from my experience without repeating it. Regarding strategies that can and will work: there is no strategy that works over all the market conditions. More, all options strategies start with a negative expectancy due to slippage and commissions. This doesn't mean you shouldn't trade options, it just means that you can't use only one strategy over all the market conditions and issues. I disagree with anybody that claims that you can use sytematically the same options strategy and constantly make money of it. Obviously I may be wrong, but I feel it is my duty to share my opinion with those that think otherwise, hoping that they'll not repeat mistakes that they can avoid. Currently I'm trading only front or back month slightly in the money straight calls and puts, or vertical spreads (long itm / short otm, when iv is higher). They work well for me, and they are the strategies I recommend to anybody who asks. But independently of the strategy anybody uses, I recommend to use defensive money management (position sizing). I mean by this to not risk more than 2% of your trading account on any individual position (I use 1%), and not to risk more than 6% on all your position opened at any given time. But be careful, this is less than your maximum risk you take, and you should have that in mind too. Hand in hand with this I recommend to write down a trading plan before opening any position. This has to spell out clearly what is your stop loss, and based on it you should calculate the size of your position that meats the 2% maximum risk. Then never open a larger position than your calculated size. Immediately after opening your position I recommend to place your hard stop orders, and not to rely on mental stop orders. One final basic recommendation is to calculate your planned position reward / risk ratio before opening it, and if this ratio is less than 1, not to open that position. Obviously these are my opinions, and others will disagree with me. I'd feel that I met my goal if at least some of the people reading this post would spend a little thought on it. Don't take my word if you don't feel like doing so, but study, read books, discuss with others with an open mind, be flexible and wise. With all due respect too ...
anyone get into BBY calls when it was <.44? hit 46.85 today-- of course there WAS risk involved in the trade - :eek: hopefully no one bought LEAPS since they never make any money- -- that's what we hear ! Ice
iceman1, sorry that you're still unhappy with my suggestion. I still don't find anything wrong with it. I stand by those comments. I disregard your ANAL comment. It's sad when you can't find arguments and you have to use derogatory language. Really sad ...
to me "anal" means someone who looks for prefection in all things related to trading and the markets--- and like "ANALysts" and many quant geniuses-- are usually wrong since the obvious and well-known doesn't always pan out anyway-- even when the risk seems low--- !
I don't understand why you're so unhappy with my posts. If you don't like them please ignore them. If you want to discuss them please do so with counter arguments. If you have a better method of forecasting prices, please share it. Just shooting from the hip possible prices doesn't help me to learn anything. Some people found useful some of my posts, you didn't. I wish you well, and to never regret discounting my risk wise recommendations.
b.t.w - judging by the pricing on BBY calls and puts- it's my "belief" that BBY is still headed northeast ----- into next week and perhaps right up until its earnings release on Dec 13th
iceman1, I'd like to make use of your good trade suggestions, but I can't as long as you don't clearly state what position to put on, and what's its time frame and profit target (at least).