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Be careful Ziv. Earnings are a two bladed sword. Expectations are usually already baked into the price. But pps may skid on a slight miss.
Morning All :)
Earning season starts :)
I will write Put Spreads on $USO today since I think when the whole news talks about oil at $30, this is the time to buy and I'll have 14% insurance against a down move.
Thanks, viking86. I was confusing rate with percentage and I'm seeing they aren't usually the same.
Ok Guys Have A Great Weekend :)
Don't forget next week earnings starts and I will write most likely 2-3 spreads per day in the next two months so get ready and have cash to trade :)
If you want and don't own my math formula yet, weekend promotion starts now till Monday morning for donations of $249 to du-lait@hotmail.com via paypal and get yourself a very good math formula to guide you for life.
Ziv
Ziv means "rate" = price you close the spread at. You open the trade at say a credit of 80c , you close it at a debit (rate) of 10c , your profit is 70c.
Yes, I'm aware of this. If one received a credit of 75 cents, as an example, an 80% profit, a rate of .2, would be 60 cents. Of course, the rate won't always be .2 whether the credit is 75 cents, a dollar, or any other amount.
Only if the initial credit is $1
yes and no problem :)
Can you consider the rate as the inverse of the percentage? Thanks for the explanation. It's a little more clear, now.
ok so if you write a put spread for $1 credit and then you close the trade a week later at $0.2 rate, you keep $0.8 which is $80 or 80%
Less than 0.2 what? It's not clear.
the price I close my trade to be less than 0.2.
just my sleng
Morning, ziv!! When you mention "rate," what are you referring to? Thanks!!
Yeah, there is always a risk that if you wait another day or week or month the stock may turn against you and what today looks like a good win may turn into a big loss. So I would say if you can get 80% of max gain ( which is the credit amount that you got when you first opened the trade) pretty early ( meaning say 3-4 weeks left until expiry) then take it and exit. But if there is only a week left to expiry and you sit on a 90% gain you can either take it and exit or you just wait until expiry and keep 100% of the gain. Up to your mood and feel. I would take the 90% gain and exit early in latter case. Who knows where the stock may go with a week left? There is a saying: "a bird in the hand is better than two in the bush" right?
Well it depends on my mood and on the math :)
I usually likes to close the spreads when the rate is 0.2 or less so on each 10 units I lose around $100-$200 if it's from 0.1-0.2.
I can always stay till the close, it's a matter of risk and feel, you just feel the market and do what your gut tells you. sometimes you are right and sometimes you are wrong, but most time you will make money, just how much depends on the day you close the trade.
I can tell you example from yesterday on this one - I wanted to close both $AAPL and $YHOO and yahoo rate was at around 0.05 so I closed it and got around $100 hit from my total of 20 units - so intead of making $1,000 I made $900. if I were to wait another week I would either make another $100 or Yahoo would move 10% for some reason and I would lose $1,000. you never know but good odds I would make the whole $1,000.
Apple on the other hand I wanted to close my 105-100 put spreads and the stock was around $110 but the rates of 105 instead of being around 0.2 it was around 0.3-0.4 so I'll wait another week and let it expire worthless if it will be above 105 or I will close it one or two days before expiry if it is getting close to 105 level.
Hope this helps :)
I'm still going to do some fake money trade until summer until i really get the hang of this! Ziv how often do you just let your trades expire? If you just do a PUT spread do you also like that expire worthless like an iron condor trade sometimes??
Summary Of Open Trades -
Winnings : $C $AAPL $NFLX $FB $TWTR $AMZN $SPY ( $6,000 WIN)
Losing : $RIG $UNG
Closed Today $YHOO $DG For $1,600 Income
Thanks #mathformula
If you plan to sell covered calls on upswings (stock goes up and down +/- 30-40% quite often) you may be better off owning at least 2K shares of KNDI (if possible) so you can sell 20x contracts say at $1 each. Nice beer money while waiting for the stock to take off. JMO
$DG - $720 Win Trade -
Just closed my 75-80 call spreads for $720 income and 80% profit on the premium
$YHOO - $902 Income Win Trade -
Just closed my 55-60 call spreads for $902 income and 93% profit on the premium.
:)
Morning all,
nothing new, still waiting for next week for earning season to kick in and then we will roll in math money :)
I've read about it in the past 24 hours.
I might go in by end of the week with a stock position in sum of $25,000.
It looks good.
Yes KNDI is my largest stock holding. This year I expect it to do real well as its EV car share has already entered 9 large cities in China compared to just one a year ago. Very strong support by the government. Good entry point right here. Stock is pretty volatile and lends itself nicely for selling calls and puts as a way to earn extra income for me.
it doesn't matter now.
wait for next week and see for yourself.
at the start the buyer always makes money and seller in losing position.
wait few days it will change
But am i down $3,150??
I've read about them a bit and it sounds like good investment.
Do you own stocks as well? I remember you asked about them a month or two ago?
Maybe I'll put in 25k on the stock at around $12 I need to see
Exactly,
You sell the close one and get credit and with that you buy the farther one away and you keep what's left
KNDI is the #1 producer of passenger Electric Vehicles in China the largest auto market in the world. Just Google it for more info.
This is sell the 35 and buy the 32.5 on the PUT side Ziv?
Can you tell me more about this company please?
I might go in with you on this one, would like to know what's it's all about and what's the story about the 1OK you wrote that will be on March
Thanks
Special Reward/Risk alert: this is not a trade that passes Ziv's selection criteria bc the stock price is below $20. But I feel it's a special situation considering its exceptionally high Reward/Risk ratio of 100% (meaning for every $1 you put down as Margin requirement you can gain max $1 in about 2.5 months, most other trades have a R/R ratio of typically 50% at best).
I just wrote 25x contracts of KNDI Mar 12P/Mar10P for a credit of $1 per contract. Potential income = 2.5K, cash required 2.5K. IMO this is a no brainer, low-risk trade since it matures 5 days after the company reports its 2014 10K in March which I expect will be a blowout report with a superstrong Q4. fwiw
:)
Don't forget next week earning season starts so it's time to jump in
You are right. It might help if I read the options chain correctly. Best to get these newb mistakes out of the way before I jump in for real.
no my friend, share price of $A is almost $40
Forgive my ignorance, ziv, but aren't these puts in the money at the moment? Thanks.
$A -
Sell 50 $A 35-32.5 Feb15 Put Spreads for 14% insurance and $1,750 premium.
Not a bad deal :)
Morning All,
I will write put spreads on $A for around 14% insurance and $1,750 premium today.
Don't forget earnings starts next week :)
Summary Of Open Trades :
Winnings : $C $DG $AAPL $NFLX $YHOO $FB $TWTR $AMZN $SPY ( $5,700 Profit)
Losing : $RIG $UNG
Good Morning All :)
Let's start this month and year with a bang :)
From now on I will write options for the Feb15 expiration and I will start closing all my trades for Jan15 in the next few days till the expiry.
Don't forget people next week the earning seasons starts so I will have around 3 trades per day.
So donate for charity $250 and get my math formula and do my trades and make allot of money this year.
:) Ziv
Hey Kev,
You close 2 trades on a condor, you have two spreads so you closes each side whenever you want, hopefully never and just let both of them expires worthless.
And I want to see you keep on your word till Jan 12th getting my formula :)
Great i will have the math by then! I still have an icon condor for AMZN open! How would you sell the condor? Do you have to sell them one by one to close it?
Morning guys! I just got up! Haha
Morning everyone -
Slow day coming back from the holidays so I will sit this one out.
Don't forget on Jan 12th earning seasons starts...get ready and make sure you have allot of money in your account to take trades and make money by selling options according to the math formula :)
Enjoy
Happy 2015 everyone!
Thank you :)
Have fun tonight and don't forget to do a good thing this year before it ends and donate $250 to du-lait@hotmail.com :)
Happy New Year ziv!
You to Ziv
I see my ($2,450.00) jumping around but my $501,738.35 overall balance doesn't move?
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