Posted by
Message
Jag_Warrior
Virginia Fan
Virginia
Member since May 2015
1322 posts

re: Option Traders get in here. Made a small fortune off Apple. Do I stay in?
quote:

I think the OP got super lucky


I’m happy for him. Really. But nothing he’s said indicates that there was any kind of strategy involved, going in or coming out. Just a bet on a horse and the horse won.

I’m always a net seller of premium, based on IV and probabilities, so I didn’t chime in to his question. Not my thing. Still, nice score though.


EthanL
LSU Fan
Auburn,AL
Member since Oct 2011
6237 posts

re: Option Traders get in here. Made a small fortune off Apple. Do I stay in?
And you are absolutely right I just got lucky. But I also had some losses I was hoping to cover so I just crossed my fingers lol. I don’t have the cash I would like to buy stocks like Apple and Google outright so the options game just seems more appealing.

And right now, I’m kicking myself for not buying any Tesla options in just the past few days but I’m going to pull the trigger if it hits anywhere close to $500 today. From what I understand short sellers have been committing suicide over the past few days


Jag_Warrior
Virginia Fan
Virginia
Member since May 2015
1322 posts

re: Option Traders get in here. Made a small fortune off Apple. Do I stay in?
Believe me, I’m pulling for you. Just because you’re doing something different than I am, I’m happy for anyone who pulls a winner.

But just some food for thought: if you learn or develop a methodology or strategy, and you religiously follow it, you *might* find that your wins are more consistent and your drawdowns are less.



BTW, apart from when I get stock “put” to me, I haven’t actually traded stocks in a couple of years. I totally agree with you that as far as trading (I do still invest in stocks/ETFs), options are the way to go. I don’t care whether the market goes up or down. In fact, hard down moves mean higher volatility = higher premiums when I sell.


Replies (0)
Replies (0)
00
mrgreenpants
Ohio State Fan
paisaland
Member since Mar 2018
355 posts
 Online 

re: Option Traders get in here. Made a small fortune off Apple. Do I stay in?
quote:

#1) Option Alpha with Kirk Du Plessis.

For the beginner to the more advanced options traders, the *free* resources there are unmatched, IMO. His primary focus is on option selling. He also has a podcast which is available on iTunes and Google Play, as well as other places.

Even if you decide to trade instruments other than ETFs (which he does and I don’t), you can still learn SO much.

#2) TastyTrade with Tom Sosnoff.

Similar to Option Alpha, but maybe a little harder to follow in the very beginning. But still, another great resource. In fact, Kirk’s premium selling methodology is largely based on that of Tom Sosnoff/TastyTrade. As a side note, Sosnoff was a cofounder of Think or Swim.




to follow up..

to me learning options is like someone teaching me how to operate that 80 ft swan sailboat sitting at the dock.
yes i can learn what a code 0 is and which part is the bow and to do in the head...i can even know how to raise the sails.
but that doesnt mean i'll be able to actually get my dreamboat off the dock without destroying it

i still need to know how to actually sail..
yes that 80 footer will fly with the wind..but i can also F up pretty spectacularly with it.


personally.. i wouldnt touch options until you feel competent trading...you have a working understanding of price action and business cycles and even how the market flows during the day.

if you are unable to make a profit swing trade (or just buying the dips)..i'd limit myself to paper until you can not lose $$

then...
keep it simple.
kirk has a book on amazon...
you'll notice it is very thin/lightweight
everything is in it...options are actually very simple..
just go buy that used. you'll have your toolbox.


some options you use when feel bullish..others for bears.
some you for high volatility times..
you just gotta know when and how to use those tools.

i personally like options bc i can fine tune my risk...and get discounted prices on stocks i'd buy anyway

for example..
right now i sell 30-45 day abnormally volatile(but sound dividend payers) contracts usually in 5-10 delta range.
this time of year.. is realistic to see 1% come in (everyday) from the decay
from summer thru thanksgiving.. different story.
i look for good opportunity..and much more risk adverse...when trading i often have those deltas 01-05 (lower risk) on contract out to 3 months.

i want higher quality stocks so if the stocks are assigned to me...i dont care.
i acquired it at a good price(to me)...and it will pay me dividends until i sell it for profit (at the next resistance point)

personally, i'd develop your own system...and then stick with it.

also, dont get greedy with options.. if you use too much margin and you then get assigned a bunch of stocks that moved against you... good luck..you'll be in deep doo doo


Replies (0)
Replies (0)
10
Jag_Warrior
Virginia Fan
Virginia
Member since May 2015
1322 posts

re: Option Traders get in here. Made a small fortune off Apple. Do I stay in?
I often listen to podcasts when I’m driving. One of my favorites is Chat With Traders. Yesterday I was listening to an older episode that made me think of this thread. It was episode 40 from about 4 1/2 years ago, and it touched on the very topic of your thread.

You may find it informative and helpful - not just dealing with your AAPL options, but long option trading in general. Check out Chat With Traders on iTunes (if you have an iOS device) and maybe Google Play too.


b-rab2
LSU Fan
N. Louisiana
Member since Dec 2005
11755 posts

re: Option Traders get in here. Made a small fortune off Apple. Do I stay in?
I'm ready to hear his new one about a new full time trader. should be dropping this week.


Replies (0)
Replies (0)
00
first pageprev pagePage 2 of 2next pagelast page
refresh

Back to top

logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram