AstuteShift wrote: ↑Wed Mar 03, 2021 5:35 pm
You mean puts I hope haha.
It depends on the option strike price, the delta and whether it’s in the money or out the money
The puts we are in are very out of the money and require a massive move to the downside for profit
One website where you can see the profit/loss is called option profit calculator.com
This website will give you a nice idea of what to expect
Yes a PUT. This website is overwhelming but AWESOME. I was wondering if something like this existed. I was thinking about how to identify which PUTS to sell for maximum profit. I think this will go a long way towards that.
The website doesn't seem to tell me anything I don't already know. I have to enter in all the data and it just does a chart showing returns. I was hoping it would identify the best options for max profit. I guess I'll keep staring at it. Is there any software that does this? I saw an ad for Ninjatrader for example.
There are websites that give historical data on options with specific dates and companies, also which ones to do on earnings etc
It’s called market chameleon, it’s pricey but you get what you paid for.
The website doesn't seem to tell me anything I don't already know. I have to enter in all the data and it just does a chart showing returns. I was hoping it would identify the best options for max profit. I guess I'll keep staring at it. Is there any software that does this? I saw an ad for Ninjatrader for example.
I don't use any of those tools. The best strategy is to understand trends, by looking at stock charts to determine patterns. Option strategies are useless if you can't determine what the stock is going to do
When the words short term appear under any post; the same conditions listed in the Market update under the short term category apply
The end is always near; its the beginning and how you live each moment that counts the most
The website doesn't seem to tell me anything I don't already know. I have to enter in all the data and it just does a chart showing returns. I was hoping it would identify the best options for max profit. I guess I'll keep staring at it. Is there any software that does this? I saw an ad for Ninjatrader for example.
I don't use any of those tools. The best strategy is to understand trends, by looking at stock charts to determine patterns. Option strategies are useless if you can't determine what the stock is going to do
Indeed. If you don’t follow the trend then option strategies will just make you broke or you make the broker rich with the commissions
SOL wrote: ↑Wed Mar 03, 2021 7:14 pm
... The best strategy is to understand trends, by looking at stock charts to determine patterns. Option strategies are useless if you can't determine what the stock is going to do
The website doesn't seem to tell me anything I don't already know. I have to enter in all the data and it just does a chart showing returns. I was hoping it would identify the best options for max profit. I guess I'll keep staring at it. Is there any software that does this? I saw an ad for Ninjatrader for example.
I don't use any of those tools. The best strategy is to understand trends, by looking at stock charts to determine patterns. Option strategies are useless if you can't determine what the stock is going to do
Indeed. If you don’t follow the trend then option strategies will just make you broke or you make the broker rich with the commissions
I’m not encouraging anyone to think options are easy money but I was in several options trading groups and I believe quite a number of option traders would disagree with the need to follow the trend. One full time options trader I know trades in calendars primarily. He sets one up every week or so. He don’t really bother much about the trend but he manages his trades well and has been doing it for a long time. When the trades goes against him, he deploys repair strategies rather than taking the loss immediately. His account was verified by several of us in the trading group and he has been pretty consistent.
I had a mentor who has been trading naked calls, puts, strangles and covered calls for years. He has his own method of evaluating options (he uses the margin charged by the broker to determine whether it’s a risky position, in his words, letting the broker do their job of risk evaluation..). The profits made went into making the deposit of a new house. Trend.. not so much, lots of expiration Friday trading yes. We used to go for trades at the last minute of market expiration for two to three dollars of profit to pay for breakfast. It’s profitable but takes tremendous amount of effort and time to trade.
Then there’s this group of options traders who trades broken wing butterflies and manages the trade using Greeks. Some of these strategies that involved broken wing butterflies are rule based and they don’t really analyze the trend much. They concentrate on managing the trade.
Option traders like this think like market makers however imho brings up the stress level
Before TI I was in a group that traded pre earning calendars, straddles, strangles, reverse iron condors, diagonals etc.
Yes they did make money, however they also made their broker rich as well with commissions
The top shadow players go for enormous gains and don’t bother doing market maker strategies. Trend investing is hard for the average joe since they use emotions to dictate their trading or think their black box system will work consistently
In markets, you either adapt or die. Since incorporating TI tactics to my trading, the gains are big and the broker is not making any money off me.
Only the very few use mass psychology in trading and use it well.
I should rephrase a bit. The trend part was meant for non professional option traders and then for traders, like us at Tactical Investor. I would never go through that stress when there is a much easier way to win with options and stocks. There is no free meal and everyone makes mistakes but the stress those advanced strategies produce is immense and its a full time job. Mind you a full time job that pays poorly when you factor the damage stress causes to one's body.
So to rephrase if you value your health, then the best way to play options is to identify the trend and focus on the longer term picture and this equates to less stress and a much bigger bang for your buck.
When the words short term appear under any post; the same conditions listed in the Market update under the short term category apply
The end is always near; its the beginning and how you live each moment that counts the most
I should rephrase a bit. The trend part was meant for non professional option traders and then for traders, like us at Tactical Investor. I would never go through that stress when there is a much easier way to win with options and stocks. There is no free meal and everyone makes mistakes but the stress those advanced strategies produce is immense and its a full time job. Mind you a full time job that pays poorly when you factor the damage stress causes to one's body.
So to rephrase if you value your health, then the best way to play options is to identify the trend and focus on the longer term picture and this equates to less stress and a much bigger bang for your buck.
I should rephrase a bit. The trend part was meant for non professional option traders and then for traders, like us at Tactical Investor. I would never go through that stress when there is a much easier way to win with options and stocks. There is no free meal and everyone makes mistakes but the stress those advanced strategies produce is immense and its a full time job. Mind you a full time job that pays poorly when you factor the damage stress causes to one's body.
So to rephrase if you value your health, then the best way to play options is to identify the trend and focus on the longer term picture and this equates to less stress and a much bigger bang for your buck.
I absolutely agree with you on that. There are many ways to make money trading. Even more ways to lose it. Some people seem to be better at managing stress thus their high stress strategy is best suited for them and not for most people.
symbios wrote: ↑Thu Mar 04, 2021 2:37 pm
I’m not encouraging anyone to think options are easy money but I was in several options trading groups and I believe quite a number of option traders would disagree with the need to follow the trend. One full time options trader I know trades in calendars primarily. He sets one up every week or so. He don’t really bother much about the trend but he manages his trades well and has been doing it for a long time. When the trades goes against him, he deploys repair strategies rather than taking the loss immediately. His account was verified by several of us in the trading group and he has been pretty consistent.
I had a mentor who has been trading naked calls, puts, strangles and covered calls for years. He has his own method of evaluating options (he uses the margin charged by the broker to determine whether it’s a risky position, in his words, letting the broker do their job of risk evaluation..). The profits made went into making the deposit of a new house. Trend.. not so much, lots of expiration Friday trading yes. We used to go for trades at the last minute of market expiration for two to three dollars of profit to pay for breakfast. It’s profitable but takes tremendous amount of effort and time to trade.
Then there’s this group of options traders who trades broken wing butterflies and manages the trade using Greeks. Some of these strategies that involved broken wing butterflies are rule based and they don’t really analyze the trend much. They concentrate on managing the trade.
Seems like an interesting group to join. Would you mind let us know how to join the group? Are they mostly options sellers?
ultramartian wrote: ↑Thu Mar 04, 2021 7:03 pm
Took profit @14.15. Might be premature. Will re-enter this trade the next time it pulls back, if it ever does.
Me too. Took profit @ $14.05 on TSLA Option for $384 profit and @ $8.75 on BABA for $154. I feel I didn't make near enough for the risk we took but I think all of us were a bit jittery betting the downside. Never go broke taking a profit right?
Current atmospheric levels of CO2 (400ppm) are much lower than 500 million years ago (3000-9000ppm).
ultramartian wrote: ↑Thu Mar 04, 2021 7:03 pm
Took profit @14.15. Might be premature. Will re-enter this trade the next time it pulls back, if it ever does.
Me too. Took profit @ $14.05 on TSLA Option for $384 profit and @ $8.75 on BABA for $154. I feel I didn't make near enough for the risk we took but I think all of us were a bit jittery betting the downside. Never go broke taking a profit right?
Absolutely... Enjoy the profit. I didn't jump in as I was little scared going against the trend.
