" OPTION SPREADS "

[KIRBY]

good solid trading advise , was wondering where to set stops also. Someday I will tackle the beast :) I subscribe to stock charts for now and trying to learn the Prophet charting on my TD Ameritrade TOS program.

[Newly2b]

No need to be, Kirby. Just pick your direction, use weeklies or monthlies, Sell 5 or 10 OTM Puts or Calls depending on direction you expect and set a OCA or OCO (one cancels all or one cancels other) order .05 away from prem you received, and move on to your next trade. Or just set a stop-loss at .05 if you prefer, and hold gains until you see a turn, but then you will have to watch the trade like a hawk. Don't hold overnight if possible. SPY moves well, has a small Buy/Sell spread, and is very liquid allowing easy exit when necessary. An ideal trader IMO, and I do multiple trades in it each month. Try with one contract to start until you 'get' how it moves, though you won't make much on it depending on what commission you pay per trade.

BTW, I use Tradestation which has such wonderful charting you wouldn't need to subscribe to another site for great charts. There is a monthly fee, which is waved if one completes 50 trades/month in one instrument (equities or options or whatever) plus fees for different data, but they only charge $1/contract/trade, less in quantity.

Newly

[KIRBY]

added few more to my SLV Feb 1st 29 puts @ .09

[KIRBY]

when it comes to trading the SPY I am a bit intimidated , so it will help very much :)
kirby

[Newly2b]

Here's an example of what I have on my chart to watch. Don't know if this will help or not, but here it is (Today's SPY chart, one of my favorite trades):



Newly

[KIRBY]

until I get my other account funded will post my reg trades ...bot SLV Feb 1 29 Puts @ .09

[KIRBY]

Renamed this board because I so want to learn the various spread trades. Debit Vertical , Credit Vertical and the Advanced Calender spreads etc... Please feel free to post you trades. entries and exits.
Also you thoughts pertaining to the trade . I am new to spreads so advise , tips etc.. will be greatly appreciated.
Thanks
Kirby

[KIRBY]

Thanks and I will always be a student of Options . will work on my charting skills.
have a good Sunday night.
kirby

[Newly2b]

As I said in a PM to you, Kirby, you already seem quite knowledgeable as to option trading, so I rather doubt there is anything I could show you that you haven't already seen and don't already know. Part of my seeming reluctance to share is that I trade a lot on gut feel, without being able to logically explain exactly why I like a particular strike or expiry or whatever. I can tell you exactly why I think a stock's price will move a certain way, but as to picking what option I will use to trade the move I see, generally I just go with what feels right to me and it works out more often than not, so why change what works?

To reiterate my philosophy on trading success, being an excellent chart reader is, IMO, the #1 difference between a trader who wins and a trader who loses, no matter the instrument used. Master the chart, and one can trade anything successfully IMO.

Newly

[KIRBY]

Thanks :)

[KIRBY]

Hi Newly and welcome. Agree Lee is very generous and gets nothing in return other then helping fellow traders. I am very thankful for it. I am very excited about trading spreads so any tips or advise will be greatly appreciated.
baby stepper here,
kirby

[Newly2b]

BTW, lee trades mostly spreads.

Newly

[Newly2b]

leemalone is very generous with his knowledge, and he has a lot of it! If you thoroughly master what he has posted on his Option Education site, you will be up and running with a good grounding in the basics. Personally I have found Lee very willing to help with any questions one might have re trading options.

Newly

[Newly2b]

Congrats on your new board, Kirby. Marked your board to follow. . .

Newly

[KIRBY]

article I found. this is my goal .
http://communities.cboe.com/t5/What-s-On-Our-Minds/Selling-Options-Premium-Ahead-of-Expiration-by-Price-Headley/ba-p/439

[KIRBY]

spending my weekend reading and printing out posts from this board from the beginning . strongly advise all to do the same.
its " Option Education "

http://investorshub.advfn.com/Option-Education-12203/

[KIRBY]

out SLV .34 + .14 . not going to hold the weekend. Still holding ANR Feb 16 11/12 Calls for swing trade.

[KIRBY]

New reading material just arrived , thanks to my nephew.
" Economics in One Lesson. by Henry Hazlitt.

[KIRBY]

sold half SLV @ .36 +.16 still think will drop below $30's

[KIRBY]

SLV feb 16 29.50 PUTS @ .31x.32

[KIRBY]

going to hold my SLV puts overnight hoping for after hours and morning gap down.think just the beginning for drop.

[KIRBY]

ANR should bounce now.p 9.53

[KIRBY]

once SLV breaks dwn 30.58 mark. shorts will pounce big time . we drop easy $1 today.

[KIRBY]

SLW tanking , they usually go hand in hand.

[KIRBY]

volume picking up on SLV I think she tanks hard next few days

[KIRBY]

IMO RIMM tanks today p 17.80

[KIRBY]

GLD and SLV both dropping.

[KIRBY]

BOT SLV feb 16 29.50 PUTS @ .20

[KIRBY]

ANR coal play had news this morning. still have Feb 16 11/ 12 calls


StockCall Chose Alpha Natural Resources and James River Coal for Review: Metallurgical Coal to Bounce Back in 2013Last update: 1/24/2013 8:00:00 AMLONDON, January 24, 2013 /PRNewswire via COMTEX/ -- Weak demand and supply gluts weighed heavily on coal prices for much of last year but the industry appears capable of turning things around in 2013. StockCall issued technical analysis on Alpha Natural Resources Inc. (ANR) and James River Coal Company (JRCC). Sign up now to download these free reports at Producers of metallurgical coal like Alpha Natural Resources and James River Coal Co. may have an edge over companies only focused on the energy market. Natural gas's low prices and lesser environmental impact continue to drive down the need for coal. The current administration's and Environmental Protection Agency's strong stance against coal is further compounding demand issues. However, a rebounding industrial sector and improving international demand bode well for the metallurgical coal side of the market. Register today to read our full technical report on James River Coal at Projected spikes in metallurgical coal demand in China and India will be a major driver for growth this year. Better demand out of Asia will be especially important for coal companies like Alpha Natural Resources which saw almost 50% of its revenues come from outside the U.S. last year. StockCall analysts review on Alpha Natural Resources just a click away at Companies like James River Coal that favor thermal over metallurgical coal will likely face more challenges this year. A decreasing supply glut for thermal coal could portend better coal prices this year though. About StockCall.com StockCall.com is a financial website where investors can have easy, precise and comprehensive research and opinions on stocks making the headlines. Sign up today to talk to our financial analyst at SOURCE StockCall.com Copyright (C) 2013 PR Newswire. All rights reserved

[KIRBY]

ANR paint @ close $10.13 good things in store IMO.
kirby

[KIRBY]

hoping they cover those ANR shorts and bounces biggly !

[KIRBY]

Bollies getting tight and Psar on bottom. IMO around 1 pm central ANR makes a break upward.P 10.09

[KIRBY]

taking baby steps . will learn pattern of 1 then 2 stocks etc ...
picked up a few Feb 16/ 12 ANR calls @ .10 to swing trade. IMO coal will be big soon.
kirby

[KIRBY]

bot few FEB 16 ANR 11 calls .23 on upgrade to buy , still holding HERO Feb 16 / 7 calls.

[KIRBY]

going to hold my HERO overnight for swingtrade. A/D thru the roof. CMF building several days. would be nice for gap up again.
kirby


P $6.90

[KIRBY]

time for HERO to come back strong and blast off.!

[KIRBY]

might hold HERO few more days.

[KIRBY]

Hero printing $7 new hod.

[KIRBY]

Chart said bail on FE and I did with .05 profit !

[KIRBY]

FE ...FEB 16 40 calls .40x.45 3x5 new hod

[KIRBY]

FE P 39.73...FEB 16 40 calls .35x.40

[KIRBY]

FE new HOD P 39.73...FEB 16 40 calls .30x.35 7x3

[KIRBY]

HAPPY BIRTHDAY to MEEEEEEEEEEEEEEE !

[KIRBY]

bot few FEB 16 /40 FE calls.

[KIRBY]

bot few HERO Feb 16 / 7 calls

[KIRBY]

have eye on HERO $7 feb calls.

[KIRBY]

Read and re-reading " OPTIONS for the beginner and Beyond " by Professor W. Edward Olmstead . good book , highly recommend it.
kirby

[KIRBY]

Just realized after my computer problems few days ago , I was running older version of QuoteTracker. Those are the breaks.
My trading plan...select a few maybe 4 lower priced stocks that trade weeklys thinking F , HPQ , RIMM , NOK and one without weeklys ANR. Will wait for the right movement and strike. also slowly send in more dry powder to my trading account.
kirby

[KIRBY]

There is a saying when you have been at something a long time you can rot. I am going back to the basics and refreshing my charting skills . Rejoined Stockcharts last night and will return to being a student .
kirby

[KIRBY]

Had a nice long conversation with a great options trader on the phone. He opened my eyes on several things. Have a more positive outlook and I need to focus more on details.
kirby