PANDA's CHALLENGE
- Thread starter PANDA_IHB
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NewToOC_IHB
New member
[quote author="graphrix" date=1221644401][quote author="CalGal" date=1221633811]Graph, can you dummy down an option order placement so I can understand what you did.
If possible, can you give me one example of the option order and what you hope happens with that order.
Thanks!
My husband said he won't help me because he said I won't let him live it down if something turns the wrong way (he's probably right). 8-/</blockquote>
Not a problem... er... well... I will do my best to make it all make sense, but no promises.
Options are essentially a bet, a bet where you can lose all your investment, unlike stocks where you lose only the difference in price from what you bought it at. I will stick with buying options vs. writing options since the game will only allow you to buy them and not write them. When you write options you can lose even more than your "investment" money.
Options are a contract, a right (call) to buy, or (put) to sell a stock. One contract is for the right of 100 shares of the stock. So a contract for the $27.50 strike BAC OCTOBER puts was trading at a price of $1.50, but one contract would cost $150.00. I bought 10 contracts (hopefully) costing me $1500.00.
Lets first discuss trading options, then at a later time I will explain exercising them. A put is a bet the stock will go down, and a call is a bet the stock will go up. So if BAC drops in price, in theory, the value of my put contracts should go up. Lets say BAC drops pretty hard tomorrow and the $27.50 October puts now trade at $2.00. If I sold my contracts for $2.00, I would have sold them for $2000.00, making me a gross profit of $500.00. If BAC runs up tomorrow, and my puts go to $1.00, then I would lose $500.00 if I sold them. Now, if I got greedy or thought that BAC was going to still go down I could wait for another day to see where my puts are trading at and sell them at a later time. If it never goes down and as time passes, then the value of the contract erodes, and this is what is know as time decay. So if BAC stayed at the same price as it is today, the puts would go down in value by the expiration date of October 17th (third Friday of the month). If they were trading at $0.08, then I would just let them expire and lose my $1500.00 plus the commission of the buying trade.
All a call is, is the opposite and hoping it will go up and not down.
I hope that helps, and feel free to ask more questions. It took me about a year of studying before I felt comfortable trading options. So you get a free crash course in a sense if you trade them.</blockquote>
FWIW, the Options Industry Council (OIC) has free online learning and occasional free in person classes with free materials on beginner and advanced options trading topics. I've done both the online and in person classes and found them to be very helpful. I highly recommend them although I'm not very adventurous so stick mostly to covered calls which are not in this market. You can get more info on their site at www.optionseducation.org.
If you are wondering why these classes are free they explain it saying they try to encourage individual investors to trade in options as it adds liquidity to the market, yati, yati. I only know I haven't been harassed by them into paying for anything.
If possible, can you give me one example of the option order and what you hope happens with that order.
Thanks!
My husband said he won't help me because he said I won't let him live it down if something turns the wrong way (he's probably right). 8-/</blockquote>
Not a problem... er... well... I will do my best to make it all make sense, but no promises.
Options are essentially a bet, a bet where you can lose all your investment, unlike stocks where you lose only the difference in price from what you bought it at. I will stick with buying options vs. writing options since the game will only allow you to buy them and not write them. When you write options you can lose even more than your "investment" money.
Options are a contract, a right (call) to buy, or (put) to sell a stock. One contract is for the right of 100 shares of the stock. So a contract for the $27.50 strike BAC OCTOBER puts was trading at a price of $1.50, but one contract would cost $150.00. I bought 10 contracts (hopefully) costing me $1500.00.
Lets first discuss trading options, then at a later time I will explain exercising them. A put is a bet the stock will go down, and a call is a bet the stock will go up. So if BAC drops in price, in theory, the value of my put contracts should go up. Lets say BAC drops pretty hard tomorrow and the $27.50 October puts now trade at $2.00. If I sold my contracts for $2.00, I would have sold them for $2000.00, making me a gross profit of $500.00. If BAC runs up tomorrow, and my puts go to $1.00, then I would lose $500.00 if I sold them. Now, if I got greedy or thought that BAC was going to still go down I could wait for another day to see where my puts are trading at and sell them at a later time. If it never goes down and as time passes, then the value of the contract erodes, and this is what is know as time decay. So if BAC stayed at the same price as it is today, the puts would go down in value by the expiration date of October 17th (third Friday of the month). If they were trading at $0.08, then I would just let them expire and lose my $1500.00 plus the commission of the buying trade.
All a call is, is the opposite and hoping it will go up and not down.
I hope that helps, and feel free to ask more questions. It took me about a year of studying before I felt comfortable trading options. So you get a free crash course in a sense if you trade them.</blockquote>
FWIW, the Options Industry Council (OIC) has free online learning and occasional free in person classes with free materials on beginner and advanced options trading topics. I've done both the online and in person classes and found them to be very helpful. I highly recommend them although I'm not very adventurous so stick mostly to covered calls which are not in this market. You can get more info on their site at www.optionseducation.org.
If you are wondering why these classes are free they explain it saying they try to encourage individual investors to trade in options as it adds liquidity to the market, yati, yati. I only know I haven't been harassed by them into paying for anything.
NewToOC_IHB
New member
Also I can't believe how low goldman sachs is today. I don't want to put any new money in this market but some of the bargains appear truly jaw dropping.
graphrix_IHB
New member
<blockquote>Lets say BAC drops pretty hard tomorrow and the $27.50 October puts now trade at $2.00. If I sold my contracts for $2.00, I would have sold them for $2000.00, making me a gross profit of $500.00.</blockquote>
They did, and I did sell for $2.00 today.
When the market closes, and if awgee's portfolio is about the same as it is now, then I will post a screen shot of how much of a killing he made today. If he doesn't mind of course. I said it in another thread, I just hope he made some of those trades for real...
They did, and I did sell for $2.00 today.
When the market closes, and if awgee's portfolio is about the same as it is now, then I will post a screen shot of how much of a killing he made today. If he doesn't mind of course. I said it in another thread, I just hope he made some of those trades for real...
SoCal78_IHB
New member
[quote author="graphrix" date=1221644401][quote author="CalGal" date=1221633811]Graph, can you dummy down an option order placement so I can understand what you did.
If possible, can you give me one example of the option order and what you hope happens with that order.
Thanks!
My husband said he won't help me because he said I won't let him live it down if something turns the wrong way (he's probably right). 8-/</blockquote>
Not a problem... er... well... I will do my best to make it all make sense, but no promises.
Options are essentially a bet, a bet where you can lose all your investment, unlike stocks where you lose only the difference in price from what you bought it at. I will stick with buying options vs. writing options since the game will only allow you to buy them and not write them. When you write options you can lose even more than your "investment" money....</blockquote>
At the risk of sounding like the village idiot -- how is this different from short selling? It sounds less risky yet I can't figure out how. (Hangs head in shame.)
If possible, can you give me one example of the option order and what you hope happens with that order.
Thanks!
My husband said he won't help me because he said I won't let him live it down if something turns the wrong way (he's probably right). 8-/</blockquote>
Not a problem... er... well... I will do my best to make it all make sense, but no promises.
Options are essentially a bet, a bet where you can lose all your investment, unlike stocks where you lose only the difference in price from what you bought it at. I will stick with buying options vs. writing options since the game will only allow you to buy them and not write them. When you write options you can lose even more than your "investment" money....</blockquote>
At the risk of sounding like the village idiot -- how is this different from short selling? It sounds less risky yet I can't figure out how. (Hangs head in shame.)
ipoplaya_IHB
New member
[quote author="PANDA" date=1221726074]Very Creative Caycifish....
Hey guys. So i am little curious? Which stocks and ETFs are you guys placing your bets in? I am already down $300 with my China FXI
but dang it!! I know i bought that ETF at a bargain price.</blockquote>
Nice Panda, you by China and the Hang Seng falls 7% in a day... China Mobile is the largest allocation in FXI I believe and it was down 6.7%.
Remind me not to hire you as my investment manager okay?
<img src="http://www.ipoplaya.com/fxi.jpg" alt="" />
Hey guys. So i am little curious? Which stocks and ETFs are you guys placing your bets in? I am already down $300 with my China FXI
but dang it!! I know i bought that ETF at a bargain price.</blockquote>Nice Panda, you by China and the Hang Seng falls 7% in a day... China Mobile is the largest allocation in FXI I believe and it was down 6.7%.
Remind me not to hire you as my investment manager okay?
<img src="http://www.ipoplaya.com/fxi.jpg" alt="" />
PANDA_IHB
New member
[quote author="ipoplaya" date=1221740266][quote author="PANDA" date=1221726074]Very Creative Caycifish....
Hey guys. So i am little curious? Which stocks and ETFs are you guys placing your bets in? I am already down $300 with my China FXI but dang it!! I know i bought that ETF at a bargain price.</blockquote>
Nice Panda, you by China and the Hang Seng falls 7% in a day... China Mobile is the largest allocation in FXI I believe and it was down 6.7%.
Remind me not to hire you as my investment manager okay?
<img src="http://www.ipoplaya.com/fxi.jpg" alt="" /></blockquote>
Good thing i bought FXI in my Panda Challenge Account, not in my Real Account. IPO, fast forward 2-3 years, I think FXI is going to kick some serious butt. I believe that China will eventually decouple from the U.S. economy like gold did with oil recently.
Panda
Hey guys. So i am little curious? Which stocks and ETFs are you guys placing your bets in? I am already down $300 with my China FXI
but dang it!! I know i bought that ETF at a bargain price.</blockquote>Nice Panda, you by China and the Hang Seng falls 7% in a day... China Mobile is the largest allocation in FXI I believe and it was down 6.7%.
Remind me not to hire you as my investment manager okay?
<img src="http://www.ipoplaya.com/fxi.jpg" alt="" /></blockquote>
Good thing i bought FXI in my Panda Challenge Account, not in my Real Account. IPO, fast forward 2-3 years, I think FXI is going to kick some serious butt. I believe that China will eventually decouple from the U.S. economy like gold did with oil recently.
Panda
PANDA_IHB
New member
FXI is up 6% today WOO hooo!!!! My portfolio is up.
Today i am going to take some serious positions in Silver and Gold Double Long ETN (DGP), and perhaps the India Fund ticker symbol IFN. India and China stocks are so cheap right, Panda is seriously drooling. CalGal and Awgee, you guys are right! Panda Challenge is so much Fun, Fun, Fun!!! and we are not even using our own money to gamble right?
Graph right?? Graph, Please don't tell me that i have to payback my Panda Challege Account if i lose all of the $100k?
Today i am going to take some serious positions in Silver and Gold Double Long ETN (DGP), and perhaps the India Fund ticker symbol IFN. India and China stocks are so cheap right, Panda is seriously drooling. CalGal and Awgee, you guys are right! Panda Challenge is so much Fun, Fun, Fun!!! and we are not even using our own money to gamble right?
Graph right?? Graph, Please don't tell me that i have to payback my Panda Challege Account if i lose all of the $100k?
ipoplaya_IHB
New member
[quote author="PANDA" date=1221763430]Good thing i bought FXI in my Panda Challenge Account, not in my Real Account. IPO, fast forward 2-3 years, I think FXI is going to kick some serious butt. I believe that China will eventually decouple from the U.S. economy like gold did with oil recently.Panda</blockquote>
Yeah, I tend to agree Panda. I'm just messin' with ya. I have FXI in both my kid's education IRAs. Will be averaging down on it when January comes around and I can kick another $2K into each...
Yeah, I tend to agree Panda. I'm just messin' with ya. I have FXI in both my kid's education IRAs. Will be averaging down on it when January comes around and I can kick another $2K into each...
PANDA_IHB
New member
[quote author="ipoplaya" date=1221779374][quote author="PANDA" date=1221763430]Good thing i bought FXI in my Panda Challenge Account, not in my Real Account. IPO, fast forward 2-3 years, I think FXI is going to kick some serious butt. I believe that China will eventually decouple from the U.S. economy like gold did with oil recently.Panda</blockquote>
Yeah, I tend to agree Panda. I'm just messin' with ya. I have FXI in both my kid's education IRAs. Will be averaging down on it when January comes around and I can kick another $2K into each...</blockquote>
IPO, 13 years from now, you will be able to send both of your kids to Stanford on full ride scholarship from the China Man Land, and you will still have 50% of your FXI fund left over. You are definitely a man with a plan.
Investing in FXI now is like investing in Irvine in 2012 - 2013. That ETF is becoming soooo ready to take off.
You should also look into India: MAtthews India Fund: Ticker MINDX and India Fund: IFN. I think the bubble is practically all out. If you do a 6 month chart it will look like how the Irvine Real Estate market will look from 2006 - 2012.
Yeah, I tend to agree Panda. I'm just messin' with ya. I have FXI in both my kid's education IRAs. Will be averaging down on it when January comes around and I can kick another $2K into each...</blockquote>
IPO, 13 years from now, you will be able to send both of your kids to Stanford on full ride scholarship from the China Man Land, and you will still have 50% of your FXI fund left over. You are definitely a man with a plan.
Investing in FXI now is like investing in Irvine in 2012 - 2013. That ETF is becoming soooo ready to take off.
You should also look into India: MAtthews India Fund: Ticker MINDX and India Fund: IFN. I think the bubble is practically all out. If you do a 6 month chart it will look like how the Irvine Real Estate market will look from 2006 - 2012.
graphrix_IHB
New member
I will until after the market opens tomorrow to see what the foreign markets do after our weird day. Then if FXI pops again with the market I will be buying a chunk of put contracts on FXI. China is so desperate to stop the bleeding the government had to step in and buy shares. It's bad enough that our government is trying to save our markets, it is a disaster waiting to happen for China.
CalGal_IHB
New member
I'm glad Blackvault joined the game.
He's killing it (in a good way).
He's up something like $35,000 in one day!
He pushed me down on the rankings. :shut:
He's killing it (in a good way).
He's up something like $35,000 in one day!
He pushed me down on the rankings. :shut:
optimusprime_IHB
New member
Anybody's order/execution reports frozen?
I sent mine in around 6:25am lol and still dont' have a report.
I sent mine in around 6:25am lol and still dont' have a report.
CalGal_IHB
New member
[quote author="optimusprime" date=1221863705]Anybody's order/execution reports frozen?
I sent mine in around 6:25am lol and still dont' have a report.</blockquote>
I just placed an order. I'll let you know if it goes through.
I sent mine in around 6:25am lol and still dont' have a report.</blockquote>
I just placed an order. I'll let you know if it goes through.
optimusprime_IHB
New member
[quote author="CalGal" date=1221863863][quote author="optimusprime" date=1221863705]Anybody's order/execution reports frozen?
I sent mine in around 6:25am lol and still dont' have a report.</blockquote>
I just placed an order. I'll let you know if it goes through.</blockquote>
Please do as I cannot cancel my orders or update or do anything to them.
Guess I'll just wait and see....rather be long then short lol
BTW..here is a breakdown of my orders..
Open Trades
Order # Action Order Date & Time Transaction Symbol Quantity Order Price Process(ed) At Expire On Status
223271 n/a 9/17/2008 9:36:59 AM Stock: Sell at Limit GS 200 Limit - $130.00 9/17/2008 9:36:59 AM 11/26/2008 8:36:59 AM Pending
223290 n/a 9/17/2008 9:37:42 AM Stock: Sell at Limit XLF 1000 Limit - $20.50 9/17/2008 9:37:42 AM 11/26/2008 8:37:42 AM Pending
264931 n/a 9/19/2008 9:26:35 AM Stock: Sell at Market Open MS 300 n/a 9/19/2008 9:26:35 AM 9/22/2008 4:25:00 PM Pending
264949 n/a 9/19/2008 9:27:26 AM Stock: Sell at Market Open GS 300 n/a 9/19/2008 9:27:26 AM 9/22/2008 4:25:00 PM Pending
264979 n/a 9/19/2008 9:28:57 AM Stock: Sell at Market Open GE 200 n/a 9/19/2008 9:28:57 AM 9/22/2008 4:25:00 PM Pending
265000 n/a 9/19/2008 9:29:31 AM Stock: Sell at Market Open AAPL 100 n/a 9/19/2008 9:29:31 AM 9/22/2008 4:25:00 PM Pending
265971 n/a 9/19/2008 9:58:12 AM Stock: Sell at Market T 500 n/a 9/19/2008 9:58:12 AM 11/28/2008 3:25:00 PM Pending
I sent mine in around 6:25am lol and still dont' have a report.</blockquote>
I just placed an order. I'll let you know if it goes through.</blockquote>
Please do as I cannot cancel my orders or update or do anything to them.
Guess I'll just wait and see....rather be long then short lol
BTW..here is a breakdown of my orders..
Open Trades
Order # Action Order Date & Time Transaction Symbol Quantity Order Price Process(ed) At Expire On Status
223271 n/a 9/17/2008 9:36:59 AM Stock: Sell at Limit GS 200 Limit - $130.00 9/17/2008 9:36:59 AM 11/26/2008 8:36:59 AM Pending
223290 n/a 9/17/2008 9:37:42 AM Stock: Sell at Limit XLF 1000 Limit - $20.50 9/17/2008 9:37:42 AM 11/26/2008 8:37:42 AM Pending
264931 n/a 9/19/2008 9:26:35 AM Stock: Sell at Market Open MS 300 n/a 9/19/2008 9:26:35 AM 9/22/2008 4:25:00 PM Pending
264949 n/a 9/19/2008 9:27:26 AM Stock: Sell at Market Open GS 300 n/a 9/19/2008 9:27:26 AM 9/22/2008 4:25:00 PM Pending
264979 n/a 9/19/2008 9:28:57 AM Stock: Sell at Market Open GE 200 n/a 9/19/2008 9:28:57 AM 9/22/2008 4:25:00 PM Pending
265000 n/a 9/19/2008 9:29:31 AM Stock: Sell at Market Open AAPL 100 n/a 9/19/2008 9:29:31 AM 9/22/2008 4:25:00 PM Pending
265971 n/a 9/19/2008 9:58:12 AM Stock: Sell at Market T 500 n/a 9/19/2008 9:58:12 AM 11/28/2008 3:25:00 PM Pending
optimusprime_IHB
New member
Hahahah only 90 minutes to update
The orders finally went thru...hopefully my cancels will go thru otherwise i'll be short..oops. hahahah
The orders finally went thru...hopefully my cancels will go thru otherwise i'll be short..oops. hahahah