Option trading for a newbie

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

  1. Ben74

    Ben74

    I bought 6 DECK March 50 puts at $3.10 today for earnings costing me ($1,874.95). Not a lot of capital at work here as I'm cautious on this trade.

    Ben
     
    #121     Feb 26, 2009
  2. NoDoji

    NoDoji

    Ahh, nothing like lowered guidance to "put" money in your pocket :D
     
    #122     Feb 26, 2009
  3. Ben74

    Ben74

    Yeah, money in my pockets from those stingy investors that didn't want to sell higher. I sold at $9.50 and got a net gain of $3,810.10. This trade is unbelievable. Can't believe the profits. I hope everyone is doing the same today too right?

    Oh and the gains have added up, I'm showing a gain this year of $27,371.85. And that's right, it's a +228% return since I put in $12,000 late last year, and I made it with 1 trade at a time. Of course, there were a few nice ones like DECK today.

    Ben
     
    #123     Feb 27, 2009
  4. NoDoji

    NoDoji

    Great work, Ben, keep up the strong risk management and you can't lose!
     
    #124     Feb 27, 2009
  5. #125     Feb 28, 2009
  6. Ben74

    Ben74

    I bought 5 AZO Mar. 155 calls at $2.25 for ($1,139.95). I'm not using a lot of capital here but who knows right.

    Ben
     
    #126     Mar 2, 2009
  7. 155 is far out of the money and that price has never been hit before on this stock I believe, do you normally buy options that far out of the money and at a price point the stock has never reached?
     
    #127     Mar 2, 2009
  8. Ben74

    Ben74

    lol, I'll give you my answer tomorrow morning. I'd be a fool to talk before the actual earnings are reported.
     
    #128     Mar 2, 2009
  9. gobar

    gobar

    ben nice one...

    do u intend to take profit right away or wait till specific target?

    yesterday i sold my HBC put right @ the open and mine was the lowest price

    hahah

    thanks
     
    #129     Mar 3, 2009
  10. Ben74

    Ben74

    frostengine, it looks like AZO has never traded above $148.50, and I don't know if it will trade beyond that level during the trading day. I can safely say that AZO did have a trade at $152 in the early hours of trading though.
     
    #130     Mar 3, 2009