Ahh.. crap.. JASO got trailed out.. 8.60

Update: Got faked out by the dive to 8.48, didn't get back in and it ran off to 9.03. Ahh geez...
hopefully, tonight will get another chance.

What's working: AAPL got to 431.. then taper down. But, short 420/419 PUTs still working.
As long it can stay above 420 by Friday, I'm happy.




This post has been edited by danmooncake: Jul 16 2013, 06:38 AM

Agreed, ThinkOrSwim by TDAmeritrade is the best. My commission is flat rate, for stock is $5 per transaction and option is $1.27 per contract.

DELL vega is exploding since yesterday...

This post has been edited by countdown: Jul 16 2013, 09:55 PM

I seriously think I need to know what is stock options. I thought it is something like call warrant in Malaysia, right?

Only partially same.

American Style options got two: Calls and Puts

The calls part is almost the same like call warrant but not quite. The call warrants are issued by the company, much longer expiration but American call options are issued by the exchange (eg. CBOE) shorter time frame..(weeks, months and maybe 1 or 2 year aka. Leaps).

Puts are bear side play for Calls.

American Options allows you to make money whether the underlying stock moves UP, Down or Nowhere as long as you know
what direction it will go in the given timeframe.

Lotsa of free courses available online for options.
Start with the OIC (Options Industry Council).
http://education.optionseducation.org/course/?podcasts=1

or

E-trade videos for quickie ones.
https://us.etrade.com/ctnt/investor-educati...cs/optionsbasic

Also plenty in YouTubes...

Don't trade until you get a freebie demo account from one of those brokers to test your trial first.

Take your time to learn.. and if any questions, feel free to post here and maybe we also brainstorm and learn too if you have a stock to play or strategy to share.

Differences bet Warrant & Option
01) Companies issue warrants to raise money but companies do not issue options.
02) Exercise of warrants would cause dilution in shareholding base but not options.

Similarities of Warrant & Options
01) Expiry at pre-determined date
02) Based on an underlying asset.
03) Seller obligated to honour terms of warrants and options
04) Buyer must pay a premium upfront.
05) Exercisable at a strike price.
06) When underlying asset is less than the strike price, price of the warrant or option is based on time or volatility.

quoted from one of the investment text books.

Nice!... my AAPL theta is melting too..

Oh my JASO.. oh geezz.. I left this faked me out and one ran away. Now already reached 9.20.
Tried to re-enter at 8.60 but it won't come back down anymore. Didn't have enough time to jump back yesterday
since I was too busy. Oh darn it.. maybe next time.

This post has been edited by danmooncake: Jul 16 2013, 10:22 PM

Great! will look into weekly melting pot soon.

Looks like going near 8.60.

This post has been edited by countdown: Jul 16 2013, 10:31 PM

Call Warrant? errrr - almost but not - u cannot trade call/put at the same block

INTC also doing great! Hopefully tomorrow announcement will make it go higher.

this year alone up almost 19% with 2x dividend of 22.5cts x2

I hope tomorrow announcement will make it higher.

u could enter the OPTIONS then? 25$ call?

Not familiar, better don't touch!

do the options have I.V (implied volatility)? If it has, i think it affects too right?

Of course.. that's what the premium comes in. high volatility = high premium.

high - use selling strategy (covered calls, naked puts, straddles, etc).
low - use buy strategy (naked calls, puts, calls-spread, puts spread).

Time (the expiration) is your enemy and if you're buyer/owner.
But, time is your friend if you're the writer/seller.
Use to your advantage!

Most people never wants to exercise the options.. they just want to trade it (profits from the premium as the stock price moves up or time decay).

Sometimes exercise may be viable if you think you can wait it out if the trade goes against you or
if you wish to own or get rid of the underlying stock anyway.

Before you play options, you must know the direction and price action of the underlying stock very well.

Remember, one contract equal 100 units of the underlying stock (except in mini-option, 1 contract = 10 units)
Don't buy big big (eg. 100 calls of AAPL), you could end up with 10000 shares of AAPL later if stuck (~ approx USD 4.3 mln).

This post has been edited by danmooncake: Jul 17 2013, 01:41 AM

Nice, thanks for the detail explanation. Will keep as reference.

Found out about I.V when trading HKSE warrants. Didn't know warrants too have I.V. So the complicated part is that, during trading, example call warrants, the underlying is in uptrend, but the warrants may suddenly adjust the I.V lower, hence the 'fair price' can suddenly lower down

Tonight, Uncle Ben will speak tonight again on his thoughts about the economy and so forth.
Market will react again.. let see how it goes.

every-time this master ben start talking the market will move like crazy - into no man's land.

i bet no surprise?