Hi all, Wow, I take a day away from the market and you guys have been busy trading and posting.
Some good points regarding different plays. I still have my SINA naked puts. Not real happy with them but don't want the loss. Tomorrow will be interesting. I will roll them down if necessary.
I have lots of AAPL spreads. Tomorrow i will close most and open new ones if all is calm in the mkt. I like the spread of 335/340. 6 pts of cush with 2 days.. A little spooky so maybe the 330/335 for .04cents.
We don't have to wait for new options as they are already on line and with plenty of open int.
NFLX, trading around 239+ maybe the 225/220 with 2 days to go. Just trying to pick up crumbs.
I try to avoid over-thinking the market. Who know why OIL is down, or commodities are down and some consumer items up. To me these are just what they are. About the time i think i see a trend, then the tide turns and all that was up is down and all that was down is up. The pundits will tell you why, but where were they before it happened? I just take what the mkt will give and pick up the crumbs. You will never out-think these items. You might out-guess but recognize that it is a guess. As I have said in the past, mutual funds with computers bigger than your house...have no idea what will happen tomorrow. Just keep picking up the crumbs and let others try to out guess tomorrow.
Jerry
11 comments:
I closed my SINA position before earnings. I didn't want to take the risk, those Chinese stocks are really getting hammered. Discipline trumps conviction and earnings are a wild card. That's my take. =/
Yes Jerry, Haha - what you wrote always makes me laugh. Don't over think. Don't over-try not to think when you think you want to think.
I had some SINA too that I diligently closed out at twice the mark (while on vacation no less!).
You are so right Jerry about so much of the regular market swings being a guessing game. Honestly half the time (or more) it seems like you may as well go to a casino and say "Red" or "Black" as far as that action is concerned. Selling conservative put or call options makes one feel more like playing the role of the house itself. Sure you won't ever have the BIG SCORE but you'll pretty consistently take the money of all the other guys who think they'll be the lucky ones.
@Jerry, Welcome back :) haha. I will look at the AAPLs but for .04 for a spread it cost me $40 in fees for 10 contracts. This would put me at $0 profit lol. I have to watch my commissions. Using ToS (canadian)
Hi guys, Fulgore, I have recently changed brokerage strictly because of comm fees. I have kept 4 accounts at TDA but opened an option trading account at a different brokerage. The fees are much lower for option trading.
It is 4.95 to open the trade, .65 for the next 5 options and then .15 for the rest of the trade. Also the fees on spreads are only for one side. There are some fees associated with the second side but small. It was a pain to set up the account but once finished it seems ok. Their requirement for plain naked puts is 25% which is higher than most brokerages (most are 20%) So that lowers your return as the maintenance is a little higher. But with the spread fees so low I do save hundreds a week with spread trading fees.
Jerry
@Jerry, wow thats great, BOB? do we have anything on the Canadian side that has this option? Where the spread fees would only be for one side?
Jerry what stocks do you have live right now and which ones are you looking at for next week?
I made a trade this morning with a PCLN spread. with PCLN trading around 518+ I sold the 505 for tomorrow and bought the 500. With only 1.5 days to go, i like the 13 points of cush and I received .14 after commish. It was a ROI of 2.7 in one day.
I have lots of AAPL at different strikes. Still some SINA PUTS.
But looking forward to next week, I will wait until Monday to open as the weekend always makes me nervous.
Jerry
AKAM - Six trading days until monthly expires. At noon today (Thursday) the May $31 put selling for $0.08. Gives you approx 9% cushion and 2% return.
What happened to the blog?
No access to all the earlier comments on this thread. Anybody has the same problem?
Good weekend to all.
Hi yes they are all gone.
Regards
test
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