Just traded options for the first time...

[Turkish]

Feels weird that I spent $7+$295 on call options. Hoping the price on this particular stock will go up during summer... *hoping*.

Has anyone here made much with options? I got A's in both of my Financial Derivatives classes in college, but that was almost 2 years ago and I know they mean jacksh!t in real world trading! Oh well... if what I hope comes true, I'll be making some mad money from these

Edit: oh and to be realistic, I know I'll most likely lose money on this but hey, live and learn!

 

[dandruff]

and what wud the symbol be?

 

[Turkish]

Originally posted by: dandruff
and what wud the symbol be?

Why would I tell you

 

[EKKC]

Originally posted by: Turkish

Originally posted by: dandruff
and what wud the symbol be?

Why would I tell you

so we would all short it and win

 

[Turkish]

Originally posted by: EKKC

Originally posted by: Turkish

Originally posted by: dandruff
and what wud the symbol be?

Why would I tell you

so we would all short it and win

only if it was that easy

 

[neovan]

I remember someone had a thread here where he said he made $10K from $500 in options.

 

[Turkish]

Originally posted by: neovan
I remember someone had a thread here where he said he made $10K from $500 in options.

I am hoping for about the same amount.

 

[mrchan]

One of my buddies turned $50k into $200k+ trading options in about a year.

 

[Descartes]

Hope has no place in the markets, but that's not the issue here.

I haven't traded in a few months as I've been too busy concentrating on other things, but I've made (and lost) a lot of money with options. I've made as much as $10k in a single day, but through my own mistakes I've lost that amount as well.

Equities for me. Consistency is what matters. If you're trading on hope you'll get lucky a few times and then lose everything.

 

[vi edit]

Well, at least the most you'll be out going long is your premium + commission. If things aren't going your way you can just sell to close out of your position and try and recover some of the premium.

 

[Turkish]

Originally posted by: vi_edit
Well, at least the most you'll be out going long is your premium + commission. If things aren't going your way you can just sell to close out of your position and try and recover some of the premium.

Yup, that's why I got on with options... didn't want to buy the stock itself which already floats about a premium of $10 over the annual average.

 

[ponyo]

I trade options when I know of a sure thing. I don't do options on hope.

So very rarely.

 

[Miramonti]

Originally posted by: Turkish

Edit: oh and to be realistic, I know I'll most likely lose money on this but hey, live and learn!

If its money that you can afford to lose and you treat it that way, then yes, you'll be sure to lose it.

I used to be a options floor trader for a number of years so I feel safe in saying that. My advice is that if you must play with options, only use money that you can afford to lose, except treat it like you can't.

I think Naustica's approach is excellent.

 

[compnovice]

Originally posted by: EKKC

Originally posted by: Turkish

Originally posted by: dandruff
and what wud the symbol be?

Why would I tell you

so we would all short it and win

:laugh:

 

[DBL]

Perhaps you should also open a short postion on the stock in order to limit your potential loss?

 

[Turkish]

i did, thanks for the advice guys

 

[Miramonti]

Originally posted by: DBL
Perhaps you should also open a short postion on the stock in order to limit your potential loss?

If he does that, and the stock goes up but not high enough to profit on the calls, he loses on both, the short stock and the amount paid for the calls, increasing potential losses while at the same time limiting potential gains.

 

[remagavon]

Who are you using to trade?

 

[Turkish]

Just bought another $1000 of options on the same stock... god, I am gonna lose so much in the worst scenario but I will earn close to my annual salary in the best case scenario....



remavagon: i use scottrade

 

[Einz]

Originally posted by: Turkish
Just bought another $1000 of options on the same stock... god, I am gonna lose so much in the worst scenario but I will earn close to my annual salary in the best case scenario....



remavagon: i use scottrade

How are you going to lose so much money in the worst case scenario? It's not like your call option value can drop below 0 and you end up owing more money. The most you'll be out is your initial 295 and the 1000, right?

 

[everman]

That's right, he can loose as much as he paid for the contracts.

and to the OP: you just bought these on hope, or did you at least do your homework first?

 

[Turkish]

Originally posted by: Einz

Originally posted by: Turkish
Just bought another $1000 of options on the same stock... god, I am gonna lose so much in the worst scenario but I will earn close to my annual salary in the best case scenario....



remavagon: i use scottrade

How are you going to lose so much money in the worst case scenario? It's not like your call option value can drop below 0 and you end up owing more money. The most you'll be out is your initial 295 and the 1000, right?

yeah i can only lose the option contracts' value + trading fees

 

[Turkish]

Originally posted by: everman
That's right, he can loose as much as he paid for the contracts.

and to the OP: you just bought these on hope, or did you at least do your homework first?

did my homework of course, actually i am quite happy that these second set of contracts are way cheaper than the initial values, so i am glad i held on a lil bit to invest more. but you know, sometimes you have to hope, cause stock market is just too unpredictable..

 

[DBL]

Originally posted by: jjsole

Originally posted by: DBL
Perhaps you should also open a short postion on the stock in order to limit your potential loss?

If he does that, and the stock goes up but not high enough to profit on the calls, he loses on both, the short stock and the amount paid for the calls, increasing potential losses while at the same time limiting potential gains.

I realize there is a small window where that may be the case but wouldn't the fact that the stock has gone up make the options more valuable? I'd imagine that you would not let the options expire with this strategy but just pick a time to sell.

 

[NikPreviousAcct]

I don't know the first thing about trading stocks or what the devil trading an option is, but good luck :thumbsup: