The Official Trading Thread
- Thread starter mGrunin
- Start date
The question isn't regarding the markets or some stock, but specifically directed to me; which is why it is off-topic. You're also coming off pretty aggressive with your reply. It is not like I created this thread and am charging people for information. This thread is supposed to be a two way road when it comes to information.
US Futures are pushing up right now since the European Markets are up. What is happening right now isn't too much of a concern since we have several reports coming in the morning.
At 8:30 AM we will reports for: Personal Income, Personal Spending, and PCE Prices - Core.
At 10:00 AM we will see reports for Pending Home Sales.
If the markets go higher tomorrow, I might begin accumulating puts on SPX.
At 8:30 AM we will reports for: Personal Income, Personal Spending, and PCE Prices - Core.
At 10:00 AM we will see reports for Pending Home Sales.
If the markets go higher tomorrow, I might begin accumulating puts on SPX.
Those Apple calls I snagged up last Friday are currently worth $12.475. My entry once again was $6.15. So my ROI is already 100%+.
I also added a few more contracts on the way up today.
May 2 435 Call: Entry at 4.65. Current market price is 4.80.
May 13 425 Call: Entry at 8.30. Current market price is 11.025. So I am currently up 25% on this position as well.
The short strangle on Apple is also up 18%.
I have also opened up a diagonal spread, calls and puts on SPX. Expiration this Friday. 1610sto/1615bto CALL. 1570sto:1565bto. PUT
Apple is up big today, nice trade, the option is now up to $14. I made a bit on CLF options last week after their earnings release. I had the $20 call options. What do you think of Facebook In terms of options? They release their numbers Wednesday.
Oh boy, a thread I can meaningfully contribute to!
OP looks like he's got his tech stuff down, but I'd be curious to see if any of the comp-nerds here dabble with trading algos. Here's an example of what my summer project is going to be after I learn a bit of mql:
BBRY's trading at 15.54 right now. It's $18 may 18th put can be sold at $2.69, and it's respective call can then be bought for $0.13. If you plug these values into the put call parity equation there's a fundamental mis-pricing that over-values the put by about $0.10/contract, and therefore an opportunity for arbitrage. Algo short's the put, short's the stock, and buys the call. Here's how the scenario plays out:
Scenario 1) BBRY gains
The short loses the amount of the gain
The call increases by the amount of the gain (offsetting the loss of the short)
The put expires, and you keep the premium
Profit of $10
Scenario 2) BBRY loses value
The short gains
The call loses (offsetting short's gains)
The put is executed underneath you (just to make matters worse), so I need to buy shares at $18 and sell them at market (less than $18 by alot).
The call expires, and i keep the premium.
Doesn't matter how much the position loses, the profit is $10
Scenario 3) BBRY doesn't go anywhere for a month.
The put expires, and i keep the premium
the call expires and i lose the premium
Profit of $256
Scenario 4) BBRY doesn't go anywhere, but the jackass on the other end of the deal executed the contract anyways (happens all the time).
Buy shares at $18, sell them at market, but the premium on the shorted put makes up for the difference as well as covering out the call premium.
Profit of $10.
Position requires you to keep about $1,200 in your account as margin for the broker, and returns about 0.28-0.83% in a month, working out to an EAR of about 3-10% without risk. Positions work on weekly chains as well, so the best I've ever seen (on paper mind you) is an EAR of 668% doing weekly arby-runs.
OP looks like he's got his tech stuff down, but I'd be curious to see if any of the comp-nerds here dabble with trading algos. Here's an example of what my summer project is going to be after I learn a bit of mql:
BBRY's trading at 15.54 right now. It's $18 may 18th put can be sold at $2.69, and it's respective call can then be bought for $0.13. If you plug these values into the put call parity equation there's a fundamental mis-pricing that over-values the put by about $0.10/contract, and therefore an opportunity for arbitrage. Algo short's the put, short's the stock, and buys the call. Here's how the scenario plays out:
Scenario 1) BBRY gains
The short loses the amount of the gain
The call increases by the amount of the gain (offsetting the loss of the short)
The put expires, and you keep the premium
Profit of $10
Scenario 2) BBRY loses value
The short gains
The call loses (offsetting short's gains)
The put is executed underneath you (just to make matters worse), so I need to buy shares at $18 and sell them at market (less than $18 by alot).
The call expires, and i keep the premium.
Doesn't matter how much the position loses, the profit is $10
Scenario 3) BBRY doesn't go anywhere for a month.
The put expires, and i keep the premium
the call expires and i lose the premium
Profit of $256
Scenario 4) BBRY doesn't go anywhere, but the jackass on the other end of the deal executed the contract anyways (happens all the time).
Buy shares at $18, sell them at market, but the premium on the shorted put makes up for the difference as well as covering out the call premium.
Profit of $10.
Position requires you to keep about $1,200 in your account as margin for the broker, and returns about 0.28-0.83% in a month, working out to an EAR of about 3-10% without risk. Positions work on weekly chains as well, so the best I've ever seen (on paper mind you) is an EAR of 668% doing weekly arby-runs.
Really appreciate this man, I have been pondering investing in stocks, at least this gives me some platform to start on, not sure why people hate on threads like this when its educational.
Overnight short on SPX is looking like a good play. We are a point away from the all the time high. The 1600 level is a huge physiological level. There will be many algos selling there. It would also setup a hedge for my long Apples and Googles.