Suggest starting here. https://www.optionsplaybook.com/options-introduction/options-basics/ Personally I only use the basics simple plays - 1. Short puts on things I dont mind owning at a lower strike for some income. 2. long puts on companies I think are going down (recent months most of my earnings have come from puts on BANC, HSBC and DB.) 3. Selling covered calls on things I own in volume for income. 4. Long calls on things I think will go up quickly. (I haven't been successful with this, the challenge is timing. It may be a solid prospect that will go up eventually, but with options you need to manage the theta.)
That's a pretty good beginner's site. The diagrams that explain the breakeven, profit, etc. points are good, too. I bought the book years ago, and the author used to work for TradeKing before they were bought out by Ally. If you go to the "home page", https://www.optionsplaybook.com/, you'll also see a dropdown in the bottom left. Take a look in there, as well -- especially the selection for "Top 10 Options Trading Mistakes".
https://www.investopedia.com/options-basics-tutorial-4583012 my core holdings include quality large cap stocks (MSFT, BX, SBUX, etc) i generally rent my stocks out by selling covered calls. and when i see a definitive up trend developing, i buy calls and sell put spreads. when i see a definite down trend developing i sell call spreads the Mar market turbulence has led me to construct calendar spreads on SBUX and MSFT
I think a lot was all covered above, but if any specific questions we can try to answer - just let us know. I mean we can't give financial buy/sell etc but someone can at least make sure you're not doing some dangerous option play (assuming your broker has it unlocked)- I mean if you ever decide to do them etc.. So could ask questions on losses/if something doesn't look right etc. Another thing you might want to try for fun is paper trading them, I'm not sure of any current apps to use, but it can be a good experience/exercise before you start trading them with real money just because on options they can shift rapidly on percent gain/lost. My main advice on them is to understand the variables which really shift them. I think a lot of newer options traders miss out on profits because they don't take them when they should (even if it's too soon) or they buy options that will never even get close. That's the hardest lesson on options is getting out and not questioning it later, basically take profits and move to the next. Sure, you can learn from your mistakes before, but step away if you start forcing trades/trade on emotions, because in options it can wreck your account fast.
Man was I right about oil or what. Jesus, you're about to see the biggest bull run in Oil history occur in from to your eyes. We have the ingredients for a 100 oil by next summer. Saudi lost a fortune in Ramadan income and royal family are getting their houses taken up for cost savings. I cant believe there were trolls here actually thought he world was about to run out of storage and we were going negative again LOL. Oil tankers were nowhere close to full and people were buying up all the FUD so institutions can get in at the bottom. The only time the oil market crashed was when retail investors sold. Poor smucks sold their savings on Robinhood to institutions in the Hamptons after reading articles by Goldmansacks LOL. I can't believe I was fortunate enough to have gotten in at the very bottom. This thread is classic example of how not to trust the media and institutional banks. Look back at this thread when I'm up mid-six figures and laugh at the troll responses I got. The USL options if anyone was lucky enough to get them are up 4x since the bottom when I posted. The funniest thing is Robinhood and Charles Schwab banned their clients from buying USO while it was at the bottom but had no problem with people buying 3.5 billion dollars worth the week before. Its sad that main street noobs lost all their money to hedge funds who conspired all this. The SEC and Justice department need to open a probe on USO ASAP because that was pure manipulation.
given the volatility, it was the responsible thing to do the exchanges have guidelines to halt trading, so do brokerages it is sad that u can't back up ur convenient claim; show us that u know what ur talking about by naming one such main street noob
SPLK operates in the same SW analytical space, AI, as SaleForce.com, and has an earlier Earning Call on 22 May. as such i use it as the canary in the coal mine / early warning system for my CRM CALL; it is indicating a continuation of a strong uptrend after momentary perturbation the trading pattern for CRM, w a 5-28 earnings call, tells the same story
That was quick, hit $175 today, took some profit, but still hodling half of what I bought. I still like the company very much, will re-enter if there's another crash.
Watching MSFT for ex-div date, I don't think it'll be a lot but should end + over today/tomorrow. GE 5/29 6.50 call - not holding long unless something changes, just moving contracts, probably wouldn't get in now, but watching for Put opportunity further out
ascending triangle or a triple top in the making? this is the 3rd time, in the last 3 wks, that BX is trying to break away from the 100 DMA, ~ 53.4, if it can gather enough momentum to bounce off the 100 DMA, then gonna be > 60 soon if not, then gonna be a triple top, be near the closest support at the 50 DMA, ~~ 48 soon
Disney I should have just repeat cycle over last month or so, unfortunately don't have any currently.
Other one I'm watching are odd ET calls at $9 for 6/19, high volume and I've made decent returns before here. I bought early and low though, so will probably move ahead like usual unless trends continue to look nice Then of course the gamble options Disney put 115 / calls 120-125 5/22, I don't follow Disney much though... So didn't do these. Someone probably just loaded these on short run for quick play.
put a sell order, on the 6-26-20 expiration, out there w a limit of $2.6 credit bto 53 Put sto 58 Put
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@CCity Zero maybe it's just me...are you actually making any plays? i mean this in the nicest way possible...but i see a lot of could have would have should have...and a lot of words. lol
Looking for a few targets to buy puts on as a hedge against the rest of my portfolio (in case there's another crash). I'm thinking long expiry (7 months?) to cover the election, way out of the money cheap premium puts. Characteristics I'm looking for: - If there's a crash, price will drop further % compared to S&P index - Good liquidity in options market (smaller caps tend to have terrible liquidity) - (good to have) High earnings multiple, if there are fears over lapse of corporate tax cuts due to election result, change in EPS forecast will get multiplied/amplified. Don't want this to be a D&D thread, this is not a prediction of an election result, just the fear/volatility leading up to the election is enough to cause price fluctuations. - (good to have) potential cyclical factors - Not a bank. They are already very low and with banks getting a cut of the stimulus loans, I don't see them falling that much further, I've covered all of my long puts on banks which is why I'm looking for new targets. Suggestions/tips on specific stocks for further research are appreciated. One name I was considering was NVDA - valuation seems out of whack when compared to Intel and AMD, but will need to read up more.
