yes, you could sell them and profit before they expire if we dip. personally i mostly stay away from options because they are more complicated than stocks. as riskfreetrading said you are holding a hot potato because every day these option lose value even if spy does not move.
I am short @ 890 and 895. Stop is between 910 and 920, Target is below 860. I think we are going to make a temp top, Heading to a flag formation in the next 10 days.
spanish89, On a serious note, would you consider posting some more about your experience, if not on this thread certainly on your own. I find the idea behind spread betting interesting, and as I understand it, it provides folks in the UK with more options when it comes to trading the markets. On a frivolous note, what's up with the young ladies on the right hand side? Seems like you are setting yourself up for distraction from the task at hand. Regards, John
ALoha mate, im feeling rather shy and gushy now as i didn't think anyone actually still read my thread apart from the few regulars who post there daily. Can i just ask if you would liek to know more about my experience of from when i started learning to trade, upto now where i trade for a living from ?? Or experience about using spreadbetting firms?? Baiscally a spreadbetting firm platform and trade executions is just exactly the same as a brokers platform. (ive attached a photo of my platform) The only differences are the comission cost structure and tax taht you have to pay. Like with brokers i hear you pay something like £1 comission per trade, now matter how big the trade is???! :eek: :eek: But with sb firms you pay the 'spread cost'. Which is a certain number of points per trade x the £ amount that you are traidng at per point. So the only people who use sb firms are swing traders, since if they are going for a 900points move, they only pay that spread 1x, so for example if its crude oil they will ahve a 12points spread, so if the market does move those 900points in their favour they will make keep 888points as their profit. Or scalpers who are extremely skilled at scalping and have moral objections to paying tax, so choose the harder tougher traidng route to have the luxury of no tax. It is very very tough scalping oil with a 12ticks spread, since oils has an average dialy range of about $3s. But you make 8trades and you have already lost $1s worth of move in just comission. So to just 'break even' that day you will have capture 1/3 of the day's entire range. So to make profit it does take alot of adjusting if you learnt to trade trhough a broker. But if you learnt trhough an sb firm like i did its great cos you could always make the switch to a broker and have a huge huge advantage every trade before you even start... And you could buy and sell at the actual price that the market was at, not have to have every trade filled 6points against you away from the market's price, and then have your exit filled 6points less profit than the market's real price would pay. And that girl wasn't actually talking to me... lol She jad just signed onto msn, and so mini window popup to notify me of that. Im not signed into msn when trading anyways though at it distracts me, but when i took that screenshot i was mid way through friday night here i think.
People should atleast wait till a couple hours into monday to see how things are trading before they place their shorts.
I do wish i had done that, but i had no way of knowing that dow wasn't gna break through the support it was getting at the 8694 level, that it went down to after i had made my sell trade from 8725. And as it was a position trade, not series of scalps i had no reason to take profit at 1st resistance, as every other day for the last 2months dow has had a movement of over 100points in a few seconds, and so if that had been it and the dow started its pullback on friday id have been so gutted. End of the day this is what i specialise in, taking the top of big overdone spikes! So the bigger the spike the better it is for me, as the steeper and higher the spike, the harder and faster the pullback! And with this spike being the biggest 1 ever in stockmarket history you simply could have asked for an easier sell opportunity! Facts are______ *Over 1,500 points spike up in a straight steep line in 4days with no pullbacks, made a new world record. All i need is a 400points pullback, so just a normal average sorta of day's range, can still even leave the dow up over 1,000points from a 3day move, and i will have nearly doubled up my current capital.
spanish89, Thank you for the quick reply. Your reply hit the spot for explaining spread betting. As time permits, if you are able to talk about your start and making the jump to full-time trading that would be great. I'm really looking forward to going full-time in the next year or two but the wife comes from a corporate salaryman culture so this will be a hard sell, even though she sees the results in the account. My bad on not realizing this was your thread. Regards, John
well i never covered all my shorts, just covered all my leverage. i'm 100% short right now and as we start to crash next week i'll be going slowly up to 400%. why does everyone always fall for the same tricks? this isn't a rally- this is a there-is-no-one-here-to-stand-in-our-way-holiday-week-dramatic-move. (see oil 4th of july). there are three big players in markets that i can really identify. technical traders, fundamental traders and game theorists. the latter simply look for opportunities to give the first two what they are looking for to make their money off of lighting those triggers up. what's better than a light volume 5 day rally through a week where half the industry took off the entire week and the other half just took off the last half. this was nothing but a short-squeeze and maybe has legs monday, but realistically the increased liquidity provided by everyone returning to work monday will simply be used to liquidate their longs through the first day or two of next week and then move back into net-net short and crush all the permabulls into hitting their stop loss. whether or not we break into new lows mid dec is questionable- but unemployment is going to be an absolute shitshow. dm