Option trading for a newbie

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

  1. I would still say the price you got was excellent as yesterday morning the strike of 17.5 was almost 1 buck in the money so you paid a little more than a dollar was excellent, given the supposedly high IV for earnings right next day. Your method might just be better than the other method where the loss of time value and ITMs becoming OTMs are constant enemies.

    What is hard is to pull the trigger (even if you hand me the call before you place the trade!). With the big cushion you have built up, pulling the trigger becomes easy I guess!
     
    #181     Mar 18, 2009
  2. Ben,

    What are your thoughts towards PLCE?
     
    #182     Mar 18, 2009
  3. Ben74

    Ben74

    Bought some. I bought 10 PLCE March 22.5 calls at $1.35 about 2 hours ago. I should have upped it to 20 calls. Too bad for me. Also bought NKE for earnings.

    Ben
     
    #183     Mar 18, 2009
  4. Ben,

    Looks like we took opposite sides on PLCE, I dove in on the 22.50 puts... Although wish I would have waited to get a better price, got in the .60's...

    Now that I know you got the calls, I am not feeling very good about this position.
     
    #184     Mar 18, 2009
  5. Ben74

    Ben74

    Heck who knows, you might be the one making money, I think I've made enough this year lol. I did buy 10 NKE March 45 calls at $1.60 for ($1,615) too. That's the one I'm watching today.

    Ben
     
    #185     Mar 18, 2009
  6. Ben74

    Ben74

    Closed those 10 PLCE calls at $1.95 for a small gain of $570. I'm still holding NKE calls, and might get out for a gain after all....who knows.

    Ben
     
    #186     Mar 19, 2009
  7. NoDoji

    NoDoji

    Any particular reason why you didn't take a nice profit on NKE calls the day before expiration?
     
    #187     Mar 19, 2009
  8. Ben74

    Ben74

    If NKE had just rallied I was hoping for something like +100% on the trade, but as it happened, people freaked out. I still have it though, and was actually at the same gain as yesterday. It's crazy for who ever took the same calls this morning at $0.50. I still have it though, and I will be looking to get out tomorrow hopefully when the market rallies. Otherwise, the win streak comes to an end.

    Ben
     
    #188     Mar 19, 2009
  9. Ben74

    Ben74

    Closed NKE March calls at $2.45. My gain is small again at just $820.

    Ben
     
    #189     Mar 20, 2009
  10. Just curious, but what do you consider a "big gain"? $820 in my book isn't bad, but then again my cost of living is very low.

    On average it looks like your just investing around $2-3k, is that about right? Ever thought of scaling into positions and building a bigger base, or is that not compatible with your strategy?


    Good job, keep it up!

    -troll
     
    #190     Mar 21, 2009