My Options Play

cnms2 · Oct 19, 2005

Quote from dummy-variable:

you can follow any of my comments on this board by just clicking on my post history. the point of view that most matches mine on these boards seems to be maverick and riskarb.

i've posted trades in other places mostly to illustrate some techniques such as butterfly management (see theoptionclub at yahoo groups) or earnings plays (see chicago option traders at google groups). i also had a blog that detailed a (failed) delta neutral trade at http://klugo.blogspot.com/
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Thanks. It seems that both maverick and riskarb are pretty active on these boards. I learned from their posts.

It seems that you abandoned your blog at the beginning of this year. Why?

dummy-variable · Oct 19, 2005

Quote from cnms2:

It seems that you abandoned your blog at the beginning of this year. Why?
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way too many other preoccupations

steve46 · Oct 19, 2005

Quote from thenewguy:

imho this trade had very little to do with options. The core of this trade is that he has a directional pick of a stock that he feels very confident in. So confident, in fact, that he's willing to leverage it to the tits, and he feels that he can overcome the inherent negative expectancy in initiating an option trade.

secondly, knowing if he "weights" his indicators isn't going to do much good if you don't know what indicator it is, now is it?

You're joking about the intraday quotes, right? In my office here I have almost 100Mb of bandwidth in quotes... EOD!!! LOLOLOL.

Besides which (and don't get me wrong, I'm on board with Multi, and want to see him succeed) putting on a naked long position that is 1/4 of your account size is gambling and high risk. He even states it on his post where he initiated the trade! As it turns out, it is more like %2.... (from the two accounts that I know of).

- The New Guy

OK, The first thing I observe is that you dont think before posting, and apparently you didnt read, or perhaps remember the posts. On page 12, second post from the top, Multi lists the technical indicators he uses as follows:

"FYI: My technical tools are EMA, DMI, and MACD in addition to weekly, daily, and intraday charts."

You say you are a professional yet you don't ask the right questions, and you don't seem to have an understanding of the game. Finally, you are here asking the same questions as the newbies. Something doesn't add up.

I suggest you ignore my posts as they are of little use to you. After all you are a professional.

Steve
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uninvited_guest · Oct 19, 2005

Quote from ozzy:

FYI.

I made I believe 4500%-5000% in 2003 and most of it was due to directional option trades. This strategy has its importance and should not be downplayed (or cast aside) IMO.
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Ozzy PM'd me about my question if he blew out his account after 2003. His answer "I blew out."

He gave no details, sort of a useless message. Don't know why he just didn't post his answer with some details so that we all can learn from his mistake.

thenewguy · Oct 19, 2005

Quote from steve46:

Quote from thenewguy:

imho this trade had very little to do with options. The core of this trade is that he has a directional pick of a stock that he feels very confident in. So confident, in fact, that he's willing to leverage it to the tits, and he feels that he can overcome the inherent negative expectancy in initiating an option trade.

secondly, knowing if he "weights" his indicators isn't going to do much good if you don't know what indicator it is, now is it?

You're joking about the intraday quotes, right? In my office here I have almost 100Mb of bandwidth in quotes... EOD!!! LOLOLOL.

Besides which (and don't get me wrong, I'm on board with Multi, and want to see him succeed) putting on a naked long position that is 1/4 of your account size is gambling and high risk. He even states it on his post where he initiated the trade! As it turns out, it is more like %2.... (from the two accounts that I know of).

- The New Guy

OK, The first thing I observe is that you dont think before posting, and apparently you didnt read, or perhaps remember the posts. On page 12, second post from the top, Multi lists the technical indicators he uses as follows:

"FYI: My technical tools are EMA, DMI, and MACD in addition to weekly, daily, and intraday charts."

You say you are a professional yet you don't ask the right questions, and you don't seem to have an understanding of the game. Finally, you are here asking the same questions as the newbies. Something doesn't add up.

I suggest you ignore my posts as they are of little use to you. After all you are a professional.

Steve
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LOLOLOL! this just keeps getting better! Where did I ever say I was a pro?? OH WAIT, HERE IT IS!!!!

"I had the same feeling when I started looking at using options as another tool. Here is what I've learned so far (please note, I AM NOT A PRO)."

I even printed it in all caps in the original post!

Actually, I have been very candid about learning to trade options. At the end of that post I ask for other, more experienced option trader's advice and opinions, like I frequently do. For crying out loud man, LOOK AT MY NAME!!! HAHAHA how much more candid can I be??

Holy crap, I've never seen anyone so condescending, rude, and stupid all in the same post. How about YOU go and read what I've written, and then YOU think before posting. Hahahah OBVIOSLY you are the one who can't read.

My comment about the EOD quotes was because you came on here all full of piss and vinegar insulting us and implying that we used EOD quotes when anyone even 1/4 serious about trading doesn't use EOD quotes. I thought someone who was so quick to call everyone else a newbie would know that.

Here's an idea... instead of insulting me and berating me with my "newbie" questions, why don't you answer them?

What's your deal anyway? You come on here and your first post is with your guns blazing... Did I piss in your wheaties in another life or something? Sheesh man, I'm just here to learn... what are you here for??

- The New Guy
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thenewguy · Oct 19, 2005

Quote from dummy-variable:

usually it's because the MM can take off risk on a position with the trade. or it might simply be a scalp on a previous trade. sometimes it's also a way to clear out a small order that get's in the way of a bigger spread trade being quoted.

not necessarily true. that's the whole problem - you can't really determine who's doing a trade or whether it's a buy or sell or if the options are being used speculatively on direction or to hedge . much easier and better to just watch IV levels: if IV is rising, then the public is buying premium; if IV is falling then the public is selling premium.
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Very interesting... Thanks for replying. I've definately learned alot from your posts and mav's and riskarb's too. Good stuff!

- The New Guy

steve46 · Oct 19, 2005

You know what, you are absolutely right. Please do continue as you were

Good luck

Steve

cnms2 · Oct 19, 2005

Quote from Multioption:

...

FYI: My technical tools are EMA, DMI, and MACD in addition to weekly, daily, and intraday charts.
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Multi:

What resolution(s) are you using for the intraday chart(s), 60 minutes, finer?

Thanks

ozzy · Oct 20, 2005

Well if your trying to get me to say it was because I was trading directional options, I will tell you that was not the case. It happened for other reasons (personal, lack of experience, leverage).

Anyways, I will make what I lost back and ten fold. While doing so I might play some directional options just for you.

ozz

P.S let me know if you want to hear my life story, I can send you another useless message.

Quote from uninvited_guest:

Ozzy PM'd me about my question if he blew out his account after 2003. His answer "I blew out."

He gave no details, sort of a useless message. Don't know why he just didn't post his answer with some details so that we all can learn from his mistake.
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thenewguy · Oct 20, 2005

Quote from steve46:

You know what, you are absolutely right. Please do continue as you were

Good luck

Steve
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OK, I have no idea if you're being sarcastic or not, but before dropping this matter forever I would like to appologize to you. I feel that I overreacted with my post last night and regret some things I said.

In reality, I am in this business to earn money, and any advice is appreciated. You may have been confused about my "professional" status because I have worked in the buiness for years, but mostly on the IT side. So on some topics I really do know what I'm talking about, but on others I'm still new and looking to learn. I post my take on things, and look for those with more experience to offer their opinions as well.

Regardless, I should not have responded like that, and I will not in the future.

Good trading to you!

- The New Guy