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Option and Stock Trading with sdh

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Last Post: 11/24/2014 7:20:50 PM - Followers: 264 - Board type: Free - Posts Today: 0

WELCOME!!
 



Disclaimer:   Any investment idea or strategy posted by any "Board Member"  is not a recommendation to enter into the investment or any sort of guarantee that strategy may work, nor is he/she qualifed to give investment advice in any shape or form.  This disclaimer generally goes for any poster on this message board unless they explicitly disclose otherwise.

 

Option and Stock Trading with sdh


Thanks for visiting my board.  The primary focus of this board is for discussion of stock, option, or ETF plays.  We look for breakout/breakdown setups which allows us to play them intraday, daily and weekly time after time.  We are looking for technical indicators that tell us when to enter and exit these plays.  The plays should have good liquidity to allow easy enteries and exits.

We are also interested in any plays that have news, earnings or have other catalyst events that make them attractive plays.


What we are not interested in:

- Any posts on OTC/Pink stocks will be removed.


- Bragging about trades you made or are currently in is totally unacceptable. We're happy you're making money, but really we don't give a shit. 

- If you come to this board to promote yourself, your website, or whatever it is you're doing, then sdh will give you a swift boot and delete your posts. Again, we just don't give a shit.

 
We appreciate visitors and members who are willing to put technical information at the top of their list when sharing trades with others. The goal is to help new and experienced traders find solid, consistent, good returns plays and technical information to help them enter/exit those plays.  Please take a look around and enjoy! 

 
 
Track your account:

Trading is a business.  If you are not producing gains on a regular basis, you need to review your trading strategy.  Some traders focus on win/loss ratios and that is not necessary.  Bottom line is what matters. The goal is to end the week with more than you started with.  Transfer those gains and play with the same money over and over.  Trade smart, take profits, rinse and repeat.
 

~2014~

Date Transfer
01/03/14 $0
01/10/14 $2,639
01/17/14 $2,600
01/24/14 $6,013
01/31/14 $4,731
02/07/14 $3,154
02/14/14 $2,046
02/21/14 $2,978
02/28/14 $4,191
03/07/14 $3,516
03/14/14 Spring Break
03/21/14 $5,848
03/28/14 $0
04/04/14 $5,025
04/11/14 - 07/25/14 15 wks $0
08/01/14 $376
08/08/14 $2,316
08/15/14 $2,457
08/22/14 $3,117
08/29/14 M $2,325
08/29/14 E $3,272
09/05/14 M $1,152
09/05/14 E $3,414
09/12/14 M $7,942
09/12/14 E $2,105
09/19/14 M $3,017
09/19/14 E $7,409
09/26/14 M $0
09/26/14 E $9,271
10/03/14 M ($1,581)
10/03/14 E $8,325
10/10/14 M $2,999
10/10/14 E $1,900
10/17/14 M $2,779
10/17/14 E $3,205
10/24/14 M $695
10/24/14 E ($4,253)
10/31/14 M $52
10/31/14 E $2,332
11/07/14 M $753
11/07/14 E $13,594
11/14/14 M ($347)
11/14/14 E $6,811
11/21/14 M $934
11/21/14 E $12,466
Total $143,405


10/31/14: Note ~ used some gains from this week and sold part of a losing position

Sept 2014:  Finally got to sell WB!!!

8/29/14:  Note ~ opened another brokerage acct to short a/h ~ will have 2 totals

2014:  Goal #2: Trying for another $48K by end of year = $96K

2014: $49,717 in gains as of 8/15/14

2014:  Holds update:  Holding SODA and also some TWTR and WB


2014:  Goal #1 recap:  Only had $42K, but made it by April 2014, then took 15 weeks off.

2014:  Goal #1: Let's try for $48K by June 1st, 2014.  Will review/submit Goal #2 in the summer.



~2013~

Date Transfer
06/07/13 $1,525
06/14/13 ($195)
06/21/13 ($480)
06/28/13 $0
07/15/13 $713
07/12/13 $1,480
07/19/13 ($318)
07/26/13 $1,745
08/02/13 $768
08/09/13 $2,408
08/16/13 ($141)
08/23/13 $1,419
08/30/13 $2,142
09/06/13 $1,503
09/13/13 $1,733
09/20/13 $1,767
09/27/13 $1,143
10/04/13 $2,246
10/11/13 $1,726
10/18/13 $1,210
10/25/13 $904
11/01/13 $1,490
11/08/13 $4,538
11/15/13 $1,890
11/22/13 $679
11/29/13 $4,073
12/06/13 $899
12/13/13 $2,443
12/20/13 $0 *
12/27/13 $0 **
12/31/13 $1,095
Total $40,405

2013:  Per spreadsheet listed above = $40K for 7 months

Note:  * 12/20/03:  Hold SODA stock position. ** 12/27/13: Made $1,019 on WPRT, but used it to offset SODA option loss from 12/13.
 


Daily Options Traders:

Board Favorites:
AAPL
AMZN
BIDU

FAS
GMCR
GOOG
LNKD
NFLX
PCLN

 


Options Screeners, Leads & Tools:


Unusual call/put volume:  http://www.schaeffersresearch.com/streetools/filters/volume_exp.aspx

Half Hour High Volume Report:  http://www.cboe.com/data/HHVolumeReportEquity.aspx

Earning Calendar:   http://www.earningswhispers.com 

High Short Float Stocks Sreener: http://finviz.com/screener.ashx?v=131&f=ind_stocksonly,sh_avgvol_o500,sh_price_o10,sh_short_o30&ft=4&o=-shortinterestshare

Option Screener:  http://finance.avafin.com/options 

Option Calculator:  http://www.cboe.com/framed/IVolframed.aspx?content=http%3a%2f%2fcboe.ivolatility.com%2fcalc%2findex.j%3fcontract%3dE28820B4-0B9C-45FB-B060-F955A530518C§ionName=SEC_TRADING_TOOLS&title=CBOE%20-%20IVolatility%20Services 

The Smart Trader - Charts and Info:    http://t.co/l8pOIeyj


 


Assessing premium risk versus reward


Premium risk on a high priced option can take profits away from you if an expected large movement in the stock is priced in.  When price doesn't move enough, share price can go up but opton price can go down.  A quick formula to assess premium risk is:
 

Premium = Option Price + Strike Price - Share Price


This should be less than the expected movement in share price during the options time fame.
 


ETF Exchange Traded Funds

Exchange traded funds are a great way to start understanding the value of options without having to play them and is a great way to leverage any non-option trading account.  These funds will allow you to work on your timing from the bulls markets to bears bear markets and back again and also allow you to be actively trading when the market is a bear run.  These ETF will also allow you to play some of the major sectors that tend to cycle up and down with event like oil, financial, gold and silver to name a view.  With the way they are setup if a sector moves up 1% a 2x will move 2% and a 3x will move 3%.   Let say oil has a bull move of  5% then the bull 2x oil ETF 2 would move apporxamatly 10% and the bull oil 3x would move 15%.  Now the inverse move would happen on the bear oil funds.  The oil bear 2x would be down 10% and the 3x would be down .

Like any investment please take the time to understand them and their powers.  Charting will be very important in making sure you are on the side of the during a bull or bear fund.  Take the time to watch them or paper trade them to help you get a better understanding of how they work and the risk/rewards they can have.

To know more about ETF's check the ETF link below and for more information on each individual please use your search engines to find out more about them and what they are based on.


ETF: http://en.wikipedia.org/wiki/Exchange-traded_fund 
Other ETF funds: http://3xetf.com/

 

 

Market ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
SPY BGU BGZ 3X Low
SPY TNA TZA 3X High

 
Energy ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
XLE ERX ERY 3X Low

 
Financials ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
$XFI FAS FAZ 3X YES

 
Gold ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
GLD UGLD DGLD 3X N/A
$GOLD DGP DGZ 2X Low

 
Gold Miners ETF  
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
$GDM NUGT DUST 3X Low

 
Housing ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
$RMG DRN DRV 3X Low

 
Natural Gas ETF  
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
$XNG GASL GASX 3X Low

 
Oil ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
$XOI UCO SCO 2X Low

 
Silver ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
$SILVER AGQ ZSL 2X LOW
$SILVER USLV DSLV 3X N/A

 
Tech's ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available
XLK TYH TYP 3X Low

 



Trading w/Technicals   (Some setups based on technical analysis used by board members)

Generally the idea is to use a sound chart setup to enter into a leveraged position using options or an ETF.  Time frame matters:

1. Use a 10 min timeframe or less for intraday trading (weekly options.)
2. 60 min for multiday hold
3. Daily chart for positions lasting a few days to a week or more (monthly options.)

This is not intended to be a detailed discussion on technical analysis, but some setups used successfully by traders on this board are discussed below:

Inflection Pattern Intraday Trading

The inflection is a general candle pattern where for a top the high of the middle candle is higher than the highs of the adjacent candles and the low of the middle candle is higher than the lows of the two adjancent candles. Visa versa for a bottom. You can extend to 4 candles, but that might be dangerous and lead to subjectivity. There is a decent probability this marks a turn according to Cycle News and Views. While you can trade both ways during a run, it makes sense to stick with uppers during an up trend and downers during a down trend (In the example below may be wise to skip the one downer signal.)

With day trading, it's a good idea to have a tight stop, but a mental stop, e.g., you need to watch and not show the market with a stop order. If the inflection is compramised, a good indication that the inflection was not true you and you should stop out (along with any other preferences one might have for a stop loss.) This comes from Perfect Stock Alert (no longer out there so perhaps no so perfect...) They like to add a penny or two to the stop.

Putting these two together is my bread and butter SPY intraday trade. Suppose you can apply this to any stock to trade options, but I believe it works best with the SPY and QQQ.

I generally like to play this using a 15 minute chart.  Occasionaly play it on a 5 minute chart, but the extra noise tends to whip you out and produces excessive inflection patterns, and ultimately has produced mixed results.

Taking profits is always a tricky situation and it's good to set targets.  Basically I like to let things run while on the right side of a fast EMA (10 or even a little faster.)  Also, identifying lines of support or resistance and current channels are good places to take profits as the bouces there can be fast and furious.  But then again it may a good idea to wait a candle or two and see if she can go some more.  Using the fast EMA of your choice may be good for this purpose.




 


Trend Reversal Candlestick Patterns


Engulfing Pattern:  A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's body.
Engulfing Pattern Candlestick example image from StockCharts.com

Evening Star:  A bearish reversal pattern that continues an uptrend with a long white body day followed by a gapped up small body day, then a down close with the close below the midpoint of the first day.
Evening Star Candlestick example image from StockCharts.com


Morning Star:  A three day bullish reversal pattern consisting of three candlesticks - a long-bodied black candle extending the current downtrend, a short middle candle that gapped down on the open, and a long-bodied white candle that gapped up on the open and closed above the midpoint of the body of the first day.
Morning Star Candlestick example image from StockCharts.com

 


Adam and Eve Chart Pattern

It has a very sharp and deep first bottom on high volume (Adam) forms a V pattern. Then the stock bounces high into the center and develops a longer and more gentle, rolling second bottom (Eve) on relatively low volatility. Price action then constricts into a tight range and the stock breaks strongly to the upside.  As seen on the chart this pattern can work in the inverse direction.  For more information please read the book Master Swing Trader by Alan S. Farley.



 


Bollinger Band/RSI Extreme

Extreme oversold or overbought stituations are an area swing traders look for action, but can be dangerous as many times stocks keep running.  When the BB is in an extreme (greater than the 2 standard deviation, of even 2.5 or 3 standard deviation for an even more extreme situation), and the RSI is over 70, then the odds for a reversal may increase:



Note: In the example above, there was a long wick on the big candle up.  Also, the following candle failed to make a new high, but traded in the upper half of the previous candle.  These are also good conditions for a possible reversal.
 

 


ADX/MACD Pinch Plays

 





3-Minute MACD Chart Play

This play uses a basic MACD indicator to enter/exit the trade.  You want to see volume and option movement.  You can begin watching the play on a 1-minute chart and move to the 3-minute for confirmation.




 


SPY ~ Daily Chart




 


Learning Options Trading Links


Options Basic 101

Lesson 1:       http://www.youtube.com/watch?v=is5Whul7KUg&feature=related

Lesson 2 :     http://www.youtube.com/watch?v=KSgmKpO9g54&feature=related

Lesson 3:      http://www.youtube.com/watch?v=3UEDnTzhT5U

Lesson 4:     http://www.youtube.com/watch?v=Xm_71C_Jpcc

Lesson 5:      http://www.youtube.com/watch?v=EyUcGpMf264&feature=related  


Lesson 6:     http://www.youtube.com/watch?v=X30liTarSwk&feature=related

Lesson 7:     http://www.youtube.com/watch?v=n4uqBy9i0Ds&feature=related


Spreads:        http://www.youtube.com/watch?v=mFUfxGv2wC0&feature=related
 



Disclaimer:  Any investment idea or strategy posted by any "Board Moderators"  is not a recommendation to enter into the investment or any sort of guarantee that strategy may work, nor is he/she qualifed to give investment advice in any shape or form.  This disclaimer generally goes for any poster on this message board unless they explicitly disclose otherwise.
 


PostSubject
#48672  Sticky Note Trading Links: Review the market's action here: sdh 09/29/13 10:25:47 AM
#41742  Sticky Note Economic Data link: sdh 04/27/13 01:00:30 PM
#12153   Just a few for next week and 17 Mt. Blanc 04/12/12 04:11:31 PM
#12152   And a split?? Jeez, going to watch GOOG closely jswguitar 04/12/12 04:11:12 PM
#12151   It sure looks like it. VXX PUTs probably BUBBA 04/12/12 04:10:39 PM
#12150   CHK I have traded several times. It bit BUBBA 04/12/12 04:09:21 PM
#12149   First sign that this earning season might be Breakout 04/12/12 04:07:24 PM
#12148   Buying VXX APR puts here... Mt. Blanc 04/12/12 04:07:14 PM
#12147   GOOG ~ beat...here she goes... sdh 04/12/12 04:06:09 PM
#12146   He likes chk alot to. One of Breakout 04/12/12 04:05:53 PM
#12145   I don't know....+$2.00 jump... sdh 04/12/12 04:04:58 PM
#12144   NFLX yep weird trading going on. News?? BUBBA 04/12/12 04:04:20 PM
#12143   NFLX ~ 106.45 a/h....? sdh 04/12/12 04:02:43 PM
#12142   Unusual move for V options. BUBBA 04/12/12 04:01:27 PM
#12141   V 4/13/12 120 CALL $1.35 +1.18 BUBBA 04/12/12 04:00:48 PM
#12140   It is a good one to play. It BUBBA 04/12/12 03:59:57 PM
#12139   I need to watch it more. A Breakout 04/12/12 03:58:37 PM
#12138   NFLX & PCLN trying so hard for new sdh 04/12/12 03:51:50 PM
#12137   Yes.....most everything is moving... sdh 04/12/12 03:50:36 PM
#12136   V 4/13/12 120 CALL $1.20 +1.03 BUBBA 04/12/12 03:50:02 PM
#12135   Red Hat on the move they should change EZmoneyED 04/12/12 03:49:18 PM
#12134   I rolled my C profits into some 35 maybe_this_time 04/12/12 03:48:22 PM
#12133   Uh thanks, I feel that old at times. :-) BUBBA 04/12/12 03:47:50 PM
#12132   lmao! I just saw that!....... sdh 04/12/12 03:47:05 PM
#12131   lol!! X 4/13/12 29 CALL 66.+.63 +2100%% BUBBA 04/12/12 03:46:47 PM
#12130   Never mind....I see it IPO'd in 2008..... sdh 04/12/12 03:46:27 PM
#12129   NO!!! It only ipoed a few years ago. BUBBA 04/12/12 03:46:09 PM
#12128   You have Visa shares from when it IPO'd..... sdh 04/12/12 03:44:41 PM
#12127   X crazy!!! I should grabbed some when I BUBBA 04/12/12 03:44:12 PM
#12126   I use to play V all by myself BUBBA 04/12/12 03:43:02 PM
#12125   V 4/13/12 120 CALL .94 +.77 one of BUBBA 04/12/12 03:42:19 PM
#12124   X 4/13/12 29 CALL .55 +.52 BUBBA 04/12/12 03:41:37 PM
#12123   Yes! Putting it all away for a sdh 04/12/12 03:40:41 PM
#12122   I have been dumping more and more of Breakout 04/12/12 03:38:53 PM
#12121   Well it dropped about $50 the next day BUBBA 04/12/12 03:38:13 PM
#12120   X 4/13/12 29 CALL .49 +.46 BUBBA 04/12/12 03:36:48 PM
#12119   lol! Hey you make that much in the BUBBA 04/12/12 03:36:07 PM
#12118   GOOG ~ if it beats....markets will continue to sdh 04/12/12 03:34:45 PM
#12117   I'll check them out..... sdh 04/12/12 03:33:36 PM
#12116   GOOG ~ trading at $650....will be either $700 sdh 04/12/12 03:32:11 PM
#12115   lol! I only run 4 charts at a BUBBA 04/12/12 03:28:46 PM
#12114   MyTrack is the software from Track Data Securities. BUBBA 04/12/12 03:27:26 PM
#12113   WoW that some charting. Breakout 04/12/12 03:26:34 PM
#12112   You been a great example of ending trades Breakout 04/12/12 03:25:34 PM
#12111   LNKD second leg is building up steama. Breakout 04/12/12 03:24:06 PM
#12110   Remember if you're betting ..... ummmm......playing GOOG ~ sdh 04/12/12 03:23:51 PM
#12109   Mytrack? Who is that through? I sdh 04/12/12 03:21:36 PM
#12108   I have 200 stocks on my Mytrack set BUBBA 04/12/12 03:18:40 PM
#12107   Indeed....lots of nice play flowing through.... sdh 04/12/12 03:18:22 PM
#12106   That's my favorite one! sdh 04/12/12 03:14:00 PM
#12105   X 4/13/12 29 CALL +1300% .47x.49 now BUBBA 04/12/12 03:12:28 PM
#12104   Only one I started to buy was FAS BUBBA 04/12/12 03:10:46 PM
PostSubject