Option trade idea on YHOO

So far my prediction looks good. YHOO opened at 16.70 and peaked at 15.75 and now it is trading at 15.59. It should drop more.
FYI : I am short 49000 shares of YHOO.

 

Oh boy, that's nearly $800k, if you really mean stock shorting, or is there maybe a typo? Or do you mean options? Yes, the latter would make more sense as this forum is about options trading.

 

Cool, congrats!
But is there a special reason why the IRA didn't perform like the other acct?

 

While we wait for his response, I'm going to guess that he is on excessive margin leverage in the other account,..... which you can not do in an IRA.
Over concentration in one stock and excessive margin is not generally a strategy combo that ends well...... assuming I'm correct.

 

i would be worried if your ira was up over one hundo percent... Good job buddy......glad your doing well...

 

There was no typo. I also believe we are getting distracted from the topic of this post.

 

You cannot trade some strategies in IRA account. That limits you in both good and bad way.

 

YHOO failed two intra-day rallies and made two head and shoulders and is going down. Time 3:13 and it is trading at 16.56

 

Trading for income:

Sell PUT 15 for November 16. Bid/Ask are 0.02/0.03
Sell at 2 cents. This trade is for those who pay low commission on options. This is a very safe trade with modertae profit.

 

2,525 in margin to sell 10 puts.. collecting 30 dollar credit.. ... not worth it to me..