It seems to me, as far as I can discern, you use the same strategy accross all markets, but vary the tactics and instruments used. Or, am I still not warm... Grooves are often mentioned, tick tock. Story Musgrave, I'd not heard of this guy before, thanks for the heads up. Cheers Bogan22
Yes, the assignment difference I knew about - not the settlement price . Remembering my days of options buying/selling, assignment was never really my concern. An OTM assignment doesn't happen (if it does, some idiot just gave you free premium). An ITM assignment can happen (and happened to me) but that just says bad trade management! Even then you get some premium early and then turn around, cover, and sell more premium Some risk can be managed by way of spreads (vertical or calendar). In fact one of my strategy was to buy OTM leaps on a good but slow moving stock and sell front month ATM options against it. A good slow accumulation of premium and you roll it all forward or backward if the underlying moves substantially. But that was still a lot of headache and not much reward for my taste. Now that you have opened my eyes some more - esp risk management, I see that you can trade whatever market as long as you are in control of #1 Reflecting back I already see lots of errors I made (combined with my stubbornness and not having clear targets). Now I want to try the bread and butter trading. I really like the idea of going flat by EOD (or mostly flat). No overnight risk and Angela throwing a bucket of cold water after serving too many beers Small steps first. Famous quote - "A journey of a thousand miles begins with a single step."
Good advice TO! In fact few days back I noticed some low ADR stocks which are mostly slow moving, heavy volume dinos (for e.g. GE) held by dumb money! The thought crossed my mind that even if they offer low ADR, you can still trade higher number of shares for lets say 20 cents with 5 cents stop loss if they are easy and predictable. Is that what you are alluding to I mostly use their ThinkOrSwim platform which TDA is pushing heavily since they aquired them. It's a one stop shop for everything - any instrument, charting, scanning, L2, active trader, news feed etc. Haven't tried quotetracker but will keep TDA open just to have access to these tools! Thanks!
well B22..once the market has good liquidity..and the spreads are not TOOOOOOOOO wide..then the risk can be taken on..but must accept that the trade is a loser before u place it..then..if things go ur way the trade might just be profitable..like this one for instance..i will have to ask permission from TFF if i can post the chart TO
going flat with shares or ftrs..yes..definitely..but with options..well..it all depends..as per mib trades..sometimes u just have to wait and see what will happen..but as u know ur risk is limited..even if the big BIG BLACK SWAN arrives..then even if u lose u are still able to trade away without the loss affecting ur way of thinking..for..if u start to leave losses fuk up ur mind..which i am sure u have experienced at some time ..that is the start of the slippery road to giving it all back..providing u have made it first..if not..then u might just end up losing ur hard earned cash..which is even worse and yes..it is always wise to learn to crawl before u can walk TO
Too many put 90% of their focus on trade identification and not enough on Risk/Trade/Money Management. but then again what do I know
Hmmm now this has me stumped So the only way that trade could have happened is if you sold puts on Friday after open and covered today after market open - i.e. the only times when this option traded at the price mentioned. So you held not only overnight but over the WEEKEND a short put!!! Doesn't it carry the same risk as short future? It looks the opposite of low risk/high reward to me. Unless I am being a complete idiot and pulled the wrong chart