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Great. If you have titles you want, let me know. I'll poke around.
Hey FJ, glad you stopped by... Lets make some $$$$... I had a GREAT week for a NOOB...lol..
Cool soap, thx!... I read Profit with Options already and Im reading The Complete Options Player now.
I have a DVD with more, but I seem to have mislabeled it in the sea of book DVDs... I will try to find it.
Ok -- I placed four CLASSICS in the iBOX. If you sift through these, you're better off than the vast majority of Optioneers.
I'll be looking for more books and strategy guides.
Rocket - your disclaimer cracks me up...
"Disclaimer: Rocketstocks is an options NOOB... Please do not rely on him for info."
That "noob" part describes me as well!!!
Nice board guys, congrats!!!
Oh yeah!!! I am so here...
Here's a book I recommend:
Product Description
The Options Playbook was created to demystify option trading and teach investors different option plays for all market conditions. No confusing jargon. No unnecessary mumbo-jumbo. Just clear, easy-to-understand explanations of more than 30 of the most popular option strategies (or plays ) broken down into a play-by-play format including:
Play Name: Long Call, Short Call Spread, Iron Condor, etc.
The Setup: The goals and reasons to run each play
Who Should Run It: Rookies, Veterans or All-Stars, based on degree of difficulty
When To Run It: Describes each play as bullish, bearish or neutral
The Strategy: A detailed Overview of each strategy
The Options Playbook also features a "Rookie's Corner," which addresses common mistakes made by beginning options traders and suggests strategies to on how to "get your feet wet". There are also sections on implied volatility (explaining how it can be predictive of the future price movement of the underlying equity), basic option terms described in easy-to-understand language, a description of how time decay and a change in implied volatility will affect the trade after it s in place, and a basic description of the Greeks and how they measure certain variables that affect options pricing. You ll also find a variety of options trading tips for beginning and experienced traders throughout the guide.
Options involve risk and are not suitable for all investors. It is possible to lose more money than invested. (Although we like to think you'll be smart.) Before making any investment decisions, please read Characteristics and Risks of Standardized Options, available at: http://content.tradeking.com/wiki/display/tkservice/Characteristics+and+Risks
(c) TradeKing. All rights reserved. Member FINRA and SIPC.
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About the Author
Brian Overby is TradeKings Director of Education. He has been in the financial industry since 1992, with a background in market making, retail brokerage, and investment banking. During his career, Mr. Overby has given more than 1,000 seminars worldwide on option trading and composed numerous articles for investor trade publications.
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I'm looking HARD at YHOO
posted this chart yesterday--call prices as of last night and tonight
January calls still overpriced..but will come down some more
Options Get Options for:
View By Expiration: Oct 08 | Nov 08 | Jan 09 | Apr 09 | Jan 10 | Jan 11
CALL OPTIONS Expire at close Fri, Jan 16, 2009
Strike Symbol Last Chg Bid Ask Vol Open Int
5.00 YHQAA.X 7.95 0.00 N/A N/A 700 1,470
10.00 YHQAB.X 4.20 0.00 N/A N/A 473 1,818
12.50 YHQAV.X 2.90 0.00 N/A N/A 147 4,058
15.00 YHQAC.X 1.69 0.00 N/A N/A 227 4,024
------------------------------------------------------------
Tonights line......
Jan calls
Options Get Options for:
View By Expiration: Oct 08 | Nov 08 | Jan 09 | Apr 09 | Jan 10 | Jan 11
CALL OPTIONS Expire at close Fri, Jan 16, 2009
Strike Symbol Last Chg Bid Ask Vol Open Int
5.00 YHQAA.X 7.25 Down 0.70 7.15 7.20 302 1,470
10.00 YHQAB.X 3.70 Down 0.50 3.65 3.70 123 1,818
12.50 YHQAV.X 2.40 Down 0.50 2.40 2.45 140 4,058
15.00 YHQAC.X 1.61 Down 0.08 1.51 1.57 1,216 4,024
16.00 YHQAQ.X 1.38 Down 0.12 1.25 1.31 515 2,168
Shoot Rocket..nothing wrong with that at all!
Nice gains
I sold my NCC Nov $3 calls today @ .90 for a nice gain.
The stock is surprisingly holding STRONG in this market, but im thinkin it might lose the war and close that lower gap... The whole sector is gonna drag it down IMO.
I figured a gain is a gain, so i took it... Im pleased!
Best of luck
Hey money, i am still learning so others might be able to help ya more with the advantages/disadvantages, but i know this...
If you dont care about owning the STOCK, dont exercise them, just net the gain.
I just trade the options and im doing very well. I dont want to own the stocks... FYI, im not touching any of the Oct strikes anymore, im playing all Nov strikes.
I bet those puts of yours are lookin might purty at todays close, eh? lol
You will be able to unload them as late as Friday or let them expire and collect the $$$$, but i bet you will have a GREAT price to unload in the AM... We will probably see some wild swings tomorrow and the DOW might not close at the LOD like today.
Make sure you understand your brokers terms for letting options expire "in the money". Call them and ask if you are unsure.
My posting contains many opinions. So please do your own research and validation.
Have a question, just started trading options about a week ago.
I am now "In the money" on one of my put plays, Should I "exercise" the put or should I create a closing order by selling back into the market? What are the advantages and disadvantages.
Also, Does the play have to be, for an example, my put, have to be under or at the strike price for me to sell it back into the market or exercise? Right now it is under the strike price, so I am "in the money".
Thanks, Would really appreciate a reply.
I bought a bunch of NCC January calls on Monday for .90/1.00
sold them yesterday during rush hour at 1.45/1.50
Could have rebought at around 1.10 but decided to wait this out
should be able to buy back around 1.00 again I think if not cheeper
Nice pick so far. Grab your investment back as soon as you feel it's threatened and hopefully the remaining "free" contracts will score you big gains.
I am keeping an eye on BAC and WB today, as well as NCC, for out of the gate HOD and a dip when the press conference starts. After that it's hard telling. Lots of fear out there. The powerhour push seems to be repeating though, so I guess patience is key. Most have had LOD just before 3 PM and gained steady for 40 min or so during powerhour. Look at GM...from 6.01 to 6.60+... also GE did the same thing. At GE's LOD I picked up 5 Nov 22.00 calls @.99 and they closed @1.20 today.
Good luck with NCC.
Why am i bearish?! This just out...
With this type of news/sentiment hitting the street, do you think the bulls will pours enough $$$ in the market at THESE levels (DJIA = 9310) to push it higher? Or will smart money continue to liquidate their positions and protect their assets?... Know your TREND...
Federal bank buy-in no economic quick-fix
Wednesday October 15, 12:44 am ET
By Jeannine Aversa, AP Economics Writer
Government's $250 billion move into banking won't lead to quick economic recovery
WASHINGTON (AP) -- With any luck, the government's quarter-trillion dollar cash infusion in banks will get them lending again, but the radical move won't quickly turn around the tottering economy.
The pain will almost certainly drag on as vanishing jobs, shrinking paychecks and nest eggs, and slumping home values continue to force millions of Americans to pull back.
ADVERTISEMENT
Sales at the nation's retailers are expected to drop in September even as they get a break from record-high energy prices. Uncertainty about the economy -- and their own financial fortunes -- probably will force consumers and businesses alike to hunker down further, spelling more problems for the already troubled economy.
Anxiety about the economy is the No. 1 concern of voters. With the presidential election just weeks away, Democrat Barack Obama and Republican rival John McCain are working furiously to convince people that each is the best choice to steer the economy through these perilous times.
In addition to September retail sales numbers, other economic data out Wednesday is expected to show that even though the recent retreat in energy prices calmed inflation at the wholesale level bit, costs are still high and are squeezing businesses.
Many economists believe the country is on the edge of -- or already in -- its first recession since 2001.
If the government's new plan works -- it will merely cushion the blow. Democrats on Capitol Hill are pushing for another round of stimulus that could cost as much as $150 billion, an effort to provide additional relief and lift the country out of the doldrums.
Federal Reserve Chairman Ben Bernanke will provide an up-to-date assessment of the country's economic and financial challenges in a speech in New York on Wednesday.
Big banks started falling in line Tuesday behind the rejiggered bailout plan that will have the government forking over as much as $250 billion in exchange for partial ownership -- putting the world's bastion of capitalism and free markets squarely in the banking business.
Some early signs were hopeful for the latest in a flurry of radical efforts to save the nation's financial system: Credit was a bit easier to come by. And stocks were down but not alarmingly so after Monday's stratospheric leap.
The new plan, President Bush declared, is "not intended to take over the free market but to preserve it."
It's all about cash and confidence and persuading banks to lend money more freely again. Those are all critical ingredients to getting financial markets to function more normally and reviving the economy.
The big question: Will it work?
There was a mix of hope and skepticism on that front. Unprecedented steps recently taken -- including hefty interest rate reductions by the Federal Reserve and other major central banks in a coordinated assault just last week -- have failed to break through the credit clog and the panicky mind-set gripping investors on Wall Street and around the globe.
The Dow Jones industrials declined 77 points on Tuesday after piling up their biggest point gain in history on Monday on news of Europe's rescue plan and in anticipation of the United States' new measures.
Initially the U.S. government will pour $125 billion into nine major banks with the hope that they will use the money to rebuild their reserves and to increase lending to consumers and businesses. Another $125 billion will be made available this year to other banks -- if they need it -- for cash infusions.
In return, the government will get ownership stakes in the financial institutions. Banks, meanwhile, will have to accept limitations on executives' compensation.
"Government owning a stake in any private U.S. company is objectionable to most Americans -- me included," Treasury Secretary Henry Paulson said in announcing the initiative. "Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable."
Whether the $250 billion will be sufficient to encourage banks to lend again is hard to tell, said Anil Kashyap, professor of economics and finance at the University of Chicago's Graduate School of Business. The Treasury Department arrived at the $250 billion figure after consulting with banking regulators.
"This plan will work if we wind up with everybody pretty well capitalized," Kashyap said. "But if it doesn't reach that point, we'll be back in soup down the road."
The government is counting on banks not to just clutch onto the cash, which aggravated the credit crisis to begin with.
"The needs of our economy require that our financial institutions not take this new capital to hoard it, but to deploy it," Paulson said.
Treasury switched gears, deciding to first use a chunk of the $700 billion from the recently enacted financial bailout package to pay for taking partial ownership stakes in banks, rather than using the money to buy rotten debts from financial institutions. The government said it still intends to buy the bad mortgages and other toxic assets, another move aimed at getting credit flowing again.
Besides the $250 billion this year on the stock purchases, Bush said Tuesday that an additional $100 billion would be needed in connection with covering bad assets. That would leave $350 billion of the $700 billion program, presumably to be spent by the next president.
Economists as well as both Democratic and Republican lawmakers on Capitol Hill had urged Treasury to first move forward on the capital injection plan, arguing that was a more effective way to battle the financial crisis.
The first bank to take advantage of the program was Bank of New York Mellon which announced it would sell $3 billion in preferred shares to the Treasury. Other banks initially participating include Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase, Bank of America Corp., including the soon-to-acquired Merrill Lynch, Citigroup Inc., Wells Fargo & Co., and State Street Corp.
The government's cash infusions are attractive to banks because they are having trouble getting money from elsewhere. Skittish investors have cut them off, moving their money into safer Treasury securities. Financial institutions are hoarding whatever cash they have rather than lending it to each other or customers.
Two other initiatives also were unveiled to stem the credit crisis: The Federal Deposit Insurance Corp. launched an insurance fund to temporarily guarantee new issues of bank debt -- fully protecting the money even if the institution fails.
And, the FDIC will start providing unlimited deposit insurance for non-interest bearing accounts, which are mainly used by businesses to cover payrolls and other expenses. Frequently these accounts exceed the current $250,000 insurance limit, so the expanded insurance should discourage nervous companies from pulling their money out. Both of these efforts would be financed by fees charged to participating financial institutions -- not money from the bailout package.
Even if the new plan works, economists caution that it could take years before locked up lending returns to normal.
My posting contains many opinions. So please do your own research and validation.
NCC calls post 2...
My 10 NCC Nov $3 calls (.47 average) close @ .88 today (.80/.90) from a .60 close yesterday
The days range was 0.65 - 1.00
NCC options chain... http://finance.yahoo.com/q/op?s=NCC&m=2008-11
These calls are "in the money" now ($3+).
"In the money" definition... http://www.investopedia.com/terms/i/inthemoney.asp
Opinions/criticism welcome
My posting contains many opinions. So please do your own research and validation.
QQQQ options strategy 1...(post 2)
The QQQQ options strategy worked out well for me today...
I was buying the Nov 29 puts from .58-.79 (25 contracts added)... Sadly, i tried to go BIG under .60, but the prices ran away from me... I still feel these puts are a good buy under $1 with the market still in a "bearish" sentiment and the DJIA over 9000. I predict the DJIA will retest between 8000-8500 MINIMUM...
Keep the TREND in mind, a market BOUNCE does not indicate a BOTTOM... I will add puts on any increase of the DJIA over 9500...
Here are the closing #'s today
Nov 29 puts closed @ .87/.91 (days range = 0.45 - 1.07)
Nov 30 puts closed @ 1.09/1.15 (days range = 0.47 - 1.33)
Yesterdays close...
Nov 29 puts closed @ .59/.69
Nov 30 puts closed @ .75/.79
Full options chain... http://finance.yahoo.com/q/op?s=QQQQ&m=2008-11?s=QAVWC.X
Opinons/Criticism welcome
My posting contains many opinions. So please do your own research and validation.
nice,i'll have to read your ibox.
pennies in general or the EOY push towards january?
ohhhh yeah, options are best in a volatile market.
My first option purchase 1.5 weeks ago ran 400% in two days. I took profits early with 150% gain though...lol... Poor me!
That was on AIG.
On Friday i bought SPY 100 calls with a $2.70 average and sold @ $4.80 Monday AM... It went on to hit $7.35 EOD... Poor me!
Im gonna be kicking myself today cause the SPY calls are gonna ROCKET.
My NCC $3 Nov calls are "in the money" pre market today as well...
$$$$$$$
PS: We might see some pennies heat up soon.
My posting contains many opinions. So please do your own research and validation.
this is where ya been hiding. lol. any money in options in a slowdown
Hi RocketStocks!
Thank you for creating this board. This is exactly what I am looking for. A forum to get more up to speed on options trading. Looking forward to seeing more participatiion!
QQQQ Nov options list...
http://finance.yahoo.com/q/op?s=QQQQ&m=2008-11
I also have 10 NCC Nov $3 CALLS, with an average about .47.
They closed @ .60 today
If they dont move significantly before the market peaks, i will take what i can get on them and implement my PUT strategy.
My posting contains many opinions. So please do your own research and validation.
QQQQ options strategy 1...
Right now the market is bouncing from its oversold conditions. However, i feel the overall TREND of the market is DOWN... There are just too many POSSIBLE negatives compared to positives out there... Another failed bank/BK, more pork stuffed bailouts, etc can cause the market to drop RAPIDLY like we've all witnessed lately. I want to be READY for this and profit from it...
The DJIA closed at 9387 today (+936 points). I am looking for a peak from 9500-10,000 on the DJIA before we start out next leg lower.
I plan to "scale into" QQQQ PUTS as the market moves higher from this point. This will allow me to obtain better and better prices as we near the peak, without missing the top, which can happen SUDDENLY.
Then, as the market moves below 9000, i will "scale out" of the QQQQ PUTS and profit from the trend.
Its too late for Oct options, so i am looking into the Nov Puts.
Here are the two i am watching (maybe someone can suggest a better strike)...
Nov 29 puts, which closed @ .59/.69
Nov 30 puts, which closed @ .75/.79
QQQQ's close today was...
35.13 +3.81 (12.16%)
Opinions/criticism is welcome.
Hey Casprs1, thx for stopping by...
I'm in a trading group where the live chat is starting to get gummed up with beginner options traders (such as myself) asking basic questions, hence this board... We're finding that options in THIS MARKET can replace the multi-bagger gains we are accustomed to with the pennies.
Please feel free to post more of your opinions and views to help us all learn.
Its much appreciated.
My posting contains many opinions. So please do your own research and validation.
Wow... no messages yet. Let me be the first. It's coming down to crunch time with options. They expire on Friday. Things are volitile to say the least. When a stock is fast moving up or down, that's where the money is with the options the last few days.
This board is for those with the desire to learn options and discuss strategies.
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