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Old 14-11-2013, 02:47 PM   #46
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I'm a newbie options trader =P
Bought it on Tue selling put @ $5. --> b4 the spike
last night I hoot another round @ $8 --> after spiked

I dont know all the diff type of options like straddles, iron, butterfly etc still trying to figure out. May be you can share with me more?
Did you sell a naked put or a put spread? You need a lot of margin to sell naked puts plus it is unlimited risk.
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Old 14-11-2013, 03:43 PM   #47
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Did you sell a naked put or a put spread? You need a lot of margin to sell naked puts plus it is unlimited risk.
Sorry I dont get you but I'm not doing naked puts.
When i sell a put,
eg VNDA Nov 13 8 P 100

I'm promising to buy 100 shares of VNDA in Nov @ $8. So my risk is max $800 - (options premium)
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Old 14-11-2013, 04:33 PM   #48
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I understand now. How many contracts did you sell? Selling options have a higher probability of success but the risk-reward ratio is usually very low.
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Old 14-11-2013, 04:50 PM   #49
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I understand now. How many contracts did you sell? Selling options have a higher probability of success but the risk-reward ratio is usually very low.
I have low capital. So depending on how much "options power" i can use.


so how about yourself?
what kinda investment do you do since you feel that options risk-reward ratio is very low. Please share.
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Old 14-11-2013, 05:15 PM   #50
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I've done option call/put spreads before. It's similar to selling options outright except that you do an additional hedge by buying an OTM strike. Selling options gives reasonable income but is susceptible to volatile events (e.g. flash crash etc).

I prefer to control risk by buying options rather than selling them. The drawback is theta burn so price needs to move quickly in your favour.
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Old 14-11-2013, 06:08 PM   #51
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sorry ah bro. as you know i'm very noob. do u mind give me some eg and figure to explain how you play?

Appreciate that.

so ur way of playing can earn more @ a much lesser risk?
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Old 15-11-2013, 12:33 AM   #52
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Sorry I dont get you but I'm not doing naked puts.
When i sell a put,
eg VNDA Nov 13 8 P 100

I'm promising to buy 100 shares of VNDA in Nov @ $8. So my risk is max $800 - (options premium)
That is a naked put.

If you're selling a put with nothing against it - no long stock position, no lower-strike put, no nothing - you're selling naked puts, and you're taking the risk that the stock plunges.

Just because the risk is capped at "the company goes bankrupt" doesn't mean it's not a naked option.

Edit: I'm not trying to slam you here; at least you have an understanding of what your maximum risk is, which is a lot more than you can say for some other "options traders" I've met.
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Old 15-11-2013, 12:37 AM   #53
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so ur way of playing can earn more @ a much lesser risk?
Nope - it earns you less, but at a much lesser risk. There's no free lunch in optionsland.
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Old 15-11-2013, 03:16 AM   #54
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Nope - it earns you less, but at a much lesser risk. There's no free lunch in optionsland.
oic. understand. yar there is no free lunch. when I use my method, i always make sure I have the capital should the stock price reaches my agreed strike price. and that is usually the price where I want to buy the stock at.


That is a naked put.

If you're selling a put with nothing against it - no long stock position, no lower-strike put, no nothing - you're selling naked puts, and you're taking the risk that the stock plunges.

Just because the risk is capped at "the company goes bankrupt" doesn't mean it's not a naked option.

Edit: I'm not trying to slam you here; at least you have an understanding of what your maximum risk is, which is a lot more than you can say for some other "options traders" I've met.
hmmm it's all about sharing info and knowledge and that what this forum is all about. I'm not a Mr Know It All.
So with regards to other options traders you have met, how do they play with options?
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Old 17-11-2013, 06:40 PM   #55
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I'm into U.S. options trading and generally sell premium spreads (weeklys and monthlys) and let time decay work for me, and don't have to worry too much that a stock price must move in one direction for me to make a profit.

With a proper set of signals and using IV as a guide, probabilities of success is good. No doubt there'll be losers but when you have more winners than losers, it'll be fine. Trade often and trade small is the name of the game, so that losers won't knock you out.

Be on the side of the market makers by selling premium,
not buying them, with the exception of some elephant plays that come along that allows you to make 3x to 5x on the trade with small amount place on Delta 20s CALL

One eg that worked out for me in the last couple of months
is X and DDD.

------------------------------------------------------------
https://www.facebook.com/SingaporeOptionsTrader

Last edited by maleman; 17-11-2013 at 06:42 PM..
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Old 18-11-2013, 08:15 PM   #56
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Dun ever buy into the BS of Zack's investment research, Jim Cramer and Gaymensex. These scammers are out to take your money. Trust their investment advice and stockpicks and be prepared to lose money.
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Old 19-11-2013, 12:23 PM   #57
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Dun ever buy into the BS of Zack's investment research, Jim Cramer and Gaymensex. These scammers are out to take your money. Trust their investment advice and stockpicks and be prepared to lose money.
Smart traders know not to listen to financial media for their so-called predictions. Studies have shown if you choose certain strategies and be on the right side of probabilities, the odds will be in your favour regardless of what's going on in the market,
barring freak events.
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Old 19-11-2013, 07:34 PM   #58
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Smart traders know not to listen to financial media for their so-called predictions. Studies have shown if you choose certain strategies and be on the right side of probabilities, the odds will be in your favour regardless of what's going on in the market,
barring freak events.
I just wish to remind newbies and lurkers about these financial media since they are pervasive in nyse stocks. They are not common in Singapore markets but common in US markets.
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Old 22-11-2013, 03:35 PM   #59
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is there anyone here who swing trade options? I thought it would be gd to share trading ideas as everyone is learning. I'm not in any trade now, just watching for setups.
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Old 25-11-2013, 04:48 PM   #60
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Bought some DUST in last two days.
Will let go soon. This is one very long swing trade
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