Option trading for a newbie

Discussion in 'Journals' started by Ben74, Oct 17, 2008.

  1. Ben74

    Ben74

    Just starting options, and posting my notes here so I can compare and see if I can match the big boys trades.

    Starting with $10,000 account using OX.

    I started with a 2 GOOG October 390 calls (.GOPJR) bought at $3.20 for ($654.95).

    I thought about selling it yesterday before the close for about $6-$8, but didn't pull the trigger. Maybe I should have done it.
     
  2. IMO you gambled on GOOG risking 7% of your capital on one day of time value. Now you may get lucky and make some $$ today, but you need to understand that money management is the key to staying alive. That $6-$8 in premium may be evaporated depending on where GOOG opens. Just my opinion. There are times when a risky trade is waranted, but as your first trade I don't think it was a wise one even if it turn a profit.
     
  3. Ben74

    Ben74

    I bought 5 more goog oct 390 calls at $0.60 just minutes ago. That's an additional ($314.95). The question is will goog rebound. time to pray.
     
  4. wenzi

    wenzi

    Praying is rarely a good trading strategy.
     
  5. I guess my first post was not clear enough. Take the rest of your money to the casino at least you'll get free drinks.
     
  6. Ben74

    Ben74

    Bought another 10 goog 390 calls at $0.50 this time for cost of ($515).

    Still hoping goog hit $287-$290 before 1PM EST.
     
  7. MTE

    MTE

    Looks like you are averaging down...

    [​IMG]
     
  8. Ben74

    Ben74

    I bought another 10 goog oct. 390 calls at $0.70 for ($715). I doubt the casinos are giving this much money out on jackpots.

    edit: updating, I have a total of 27 GOOG October 390 calls for a net cost of ($2,199.90).

    I'll update on a closing price later, don't plan on excercising of course.

    edit again: My AMZN November 60 calls were just opened at $3.60. Didn't think I'd get my limit price, but got it, so I have 10 AMZN November 60 calls at $3.60 for cost of ($3615).

    Have over $5500 invested or speculated, however anyone wants to put it.
     
  9. Ben74

    Ben74

    well, if you knew what I knew, you'd be putting in thousands more than me into GOOG. :D
     
    #10     Oct 17, 2008