graphrix_IHB
New member
skek said:
Are you sure? I think he has a bromance going on that he hasn't told us about.
Stock Market Day-Trading Discussion Thread
- Thread starter usctrojanman29_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
Are you sure? I think he has a bromance going on that he hasn't told us about.
Just hire a manager that knows how to preserve capital. I hear BV Capital Management has some innovative investments just...for...YOU!
Site is not up yet. I'm not just making a financial blog site, blog will be just a small part of it. It will have educational lessons/strategies and other trading info. For example how and when to use covered calls, buy calls, buy puts, bull put spreads, calendar spreads bla bla bla.
It is mainly geard for the company I want to launch, but blogging will be part of it. I think I'm going to just hire someone and have it wrap it up in a week or so. I'm coming to a fast realization that I need to stick to trading equities and not screw around with web programing.
I'm not a fan of selling uncovered positions, however I'm never going to say the strat doesn't work. I just don't like the associated risk that comes with it. If I sell calls without owning the stock, I'll often do spreds.
As a matter of a fact, I have a spread on CSCO I got in about a week ago. Bought 14 strike calls, and sold 15 strike calls. As long as the stock trades 14.48+, I will pocked the spread between the two. So really, all I'm trying to do is let time decay away the higher time premium on the 15 strike call.
Here is a snapshot of the position...
To break it down further, the 14 strike was bought for 1.02 and the 15 strike was sold for .47. If the stock on expiration day is at 15 a share, then the .47 will evaporate from the 15 strike call I sold, and the value of the 14 strike will go down from 1.01 to 1.00 giving me a 1 cent loss, but a .47 gain on the 15 strike which equates to a .46 cent gain X 100 (10,000 shares) = 4.6K. So I'm limiting my upside gain, however I'm also cutting my potential losses in half. Normally thi s transaction alone would cost me 10K, but it's cushioned by the 4.6K credit by selling calls so it cost me only 5.4K. Also, I'm limiting my loss to 5.4K instead of 10K if I bought the 14's by themselves.
To ease my temptation, I bought ATVI instead. No joke.
Ahh starcraft...I won't even pretend. I will buy it.
EGI@.98
back in, I don't know y I waste my time and give extra to scottrade, I should've just stayed in.
Sigh. not even in beta yet. Looks like we will be lucky if we get it in 2010
Yeah...they are delaying the process. I would have expected them to be further along now. D3 is also on the way, looking forward to it as well.
No complaints so far. Trading options is a breeze in regards to fees. However, I don't like their tools as much as TD. For example the streamer is vital to me, so is strategy desk etc. So I'm going to keep a few bucks in TD or whatever it takes to still get that service, but most of my trading will be done in OH. I'll be using both services. One for tools, one for trading.
It opens a whole new world of option trading because of their fee structure. Like I would never in my life engage in buying 1-5 cent option contracts because it would cost me an arm and a leg. Think about it...1 cent option contract = 1 dollar...then you have to pay .75 cents for each option contract as your trading fee...well you're down 75% already...
What is fun here is to take advantage of arbitrage opportunities. Ask me about it when we meet up. I dont feel like typing it out.
But with low fees, youc an do amazing things in the option world.
Are you sure? I think he has a bromance going on that he hasn't told us about.
jbenko_IHB
New member
Well I'm satisfied with this. I cost averaged over and over until we got some kind of a pop, especially CSCO. I set a 15.50 target, didn't expect to get it in one day, but got it. Sold 15 strike calls, and now I chill.
I also picked up some 16 strike March puts on CSCO as additional hedge for my CSCO position.
I'm still underwater with BofA. However, I'm selling calls against it, and due to its premium I can own the stock outright in about 3-4 months or atleast reduce my cost significantly. I have enough capital to absorb losses on BofA, I just don't want it to go below 1 dollar.
I also picked up some 16 strike March puts on CSCO as additional hedge for my CSCO position.
I'm still underwater with BofA. However, I'm selling calls against it, and due to its premium I can own the stock outright in about 3-4 months or atleast reduce my cost significantly. I have enough capital to absorb losses on BofA, I just don't want it to go below 1 dollar.
jbenko_IHB
New member
skek said:
Just hire a manager that knows how to preserve capital. I hear BV Capital Management has some innovative investments just...for...YOU!
Site is not up yet. I'm not just making a financial blog site, blog will be just a small part of it. It will have educational lessons/strategies and other trading info. For example how and when to use covered calls, buy calls, buy puts, bull put spreads, calendar spreads bla bla bla.
It is mainly geard for the company I want to launch, but blogging will be part of it. I think I'm going to just hire someone and have it wrap it up in a week or so. I'm coming to a fast realization that I need to stick to trading equities and not screw around with web programing.
jbenko_IHB
New member
Just to clarify before anyone gets crazy ideas...
BofA isn't an investment, it's a calculated hedged bet. The company itself is garbage.
It has trailed Citi's performance...so I'm just betting that it isn't Citi.
I'm betting that they won't get nationalized, which will lead to a pop.
I'm betting that M2M rule gets revisited, which will lead to a pop of all pops.
I'm betting that BofA's position isn't as bad as Citi's, which will lead to a pop. (once earnings come)
Right now, the stock is trading assuming that none of the above can happen. It simply has a huge upward potential, and has significant news baked in. With premiums selling between 11-20% a month, you can significantly reduce your cost average quickly owning the stock outright. At that point, I will let it go and have it do whatever it wants. I wont care if it goes to 0.
BofA isn't an investment, it's a calculated hedged bet. The company itself is garbage.
It has trailed Citi's performance...so I'm just betting that it isn't Citi.
I'm betting that they won't get nationalized, which will lead to a pop.
I'm betting that M2M rule gets revisited, which will lead to a pop of all pops.
I'm betting that BofA's position isn't as bad as Citi's, which will lead to a pop. (once earnings come)
Right now, the stock is trading assuming that none of the above can happen. It simply has a huge upward potential, and has significant news baked in. With premiums selling between 11-20% a month, you can significantly reduce your cost average quickly owning the stock outright. At that point, I will let it go and have it do whatever it wants. I wont care if it goes to 0.
usctrojanman29_IHB
New member
Yeah hurry up, I need some more investment ideas now that I'm busy working. haha I know you don't like this strategy, but I'm looking at different stocks that have big put premiums in the single digits to sell some uncovered puts next week (I've seem to make some decent returns on this risky strategy for the past 3-4 months). I've engaged legal counsel to go after my former employer for not paying me commissions on my closed loans so if I get some funds from that we'll have to talk about investment strategies on a regular basis. Hope you remember the little people when BV Capital Management is hiring and gets huge.BlackVault CM said:
vicstah_IHB
New member
Dear BlackVault,
Please continue to make your monthly contribution towards your multiple WOW accounts. Additionally, StarCraft 2 will be launching in 2009, and we are counting on your significant contribution.
Thanks,
ATVI Investors
Please continue to make your monthly contribution towards your multiple WOW accounts. Additionally, StarCraft 2 will be launching in 2009, and we are counting on your significant contribution.
Thanks,
ATVI Investors
jbenko_IHB
New member
usctrojanman29 said:Yeah hurry up, I need some more investment ideas now that I'm busy working. haha I know you don't like this strategy, but I'm looking at different stocks that have big put premiums in the single digits to sell some uncovered puts next week (I've seem to make some decent returns on this risky strategy for the past 3-4 months). I've engaged legal counsel to go after my former employer for not paying me commissions on my closed loans so if I get some funds from that we'll have to talk about investment strategies on a regular basis. Hope you remember the little people when BV Capital Management is hiring and gets huge.BlackVault CM said:
I'm not a fan of selling uncovered positions, however I'm never going to say the strat doesn't work. I just don't like the associated risk that comes with it. If I sell calls without owning the stock, I'll often do spreds.
As a matter of a fact, I have a spread on CSCO I got in about a week ago. Bought 14 strike calls, and sold 15 strike calls. As long as the stock trades 14.48+, I will pocked the spread between the two. So really, all I'm trying to do is let time decay away the higher time premium on the 15 strike call.
Here is a snapshot of the position...
To break it down further, the 14 strike was bought for 1.02 and the 15 strike was sold for .47. If the stock on expiration day is at 15 a share, then the .47 will evaporate from the 15 strike call I sold, and the value of the 14 strike will go down from 1.01 to 1.00 giving me a 1 cent loss, but a .47 gain on the 15 strike which equates to a .46 cent gain X 100 (10,000 shares) = 4.6K. So I'm limiting my upside gain, however I'm also cutting my potential losses in half. Normally thi s transaction alone would cost me 10K, but it's cushioned by the 4.6K credit by selling calls so it cost me only 5.4K. Also, I'm limiting my loss to 5.4K instead of 10K if I bought the 14's by themselves.
jbenko_IHB
New member
vicstah said:
To ease my temptation, I bought ATVI instead. No joke.
Ahh starcraft...I won't even pretend. I will buy it.
graphrix_IHB
New member
Okay you nerds... instead of talking about the next uber-nerd game that is coming out, why don't you talk about getting BV's site up? Games are fun and all, but making money off some great trades is even more fun. I expect to see an amazingly awesome site for blackvaultcm.com in the next 30-45 days. Of course... as long as it doesn't impede on the launch of other businesses... ;-)
upperlowerclass_IHB
New member
upperlowerclass said:
EGI@.98
back in, I don't know y I waste my time and give extra to scottrade, I should've just stayed in.
vicstah_IHB
New member
Coming soon
www.CrackerCakes.com
We are Snarky!tm
www.CrackerCakes.com
We are Snarky!tm
25inIrvine_IHB
New member
BlackVault CM said:
Sigh. not even in beta yet. Looks like we will be lucky if we get it in 2010
jbenko_IHB
New member
24inIrvine said:
Yeah...they are delaying the process. I would have expected them to be further along now. D3 is also on the way, looking forward to it as well.
usctrojanman29_IHB
New member
Off topic a bit, but how's Option House? I'm getting tired of paying through the nose for option commissions to TD and liked OH's $10 flat fee structure.BlackVault CM said:
jbenko_IHB
New member
usctrojanman29 said:
No complaints so far. Trading options is a breeze in regards to fees. However, I don't like their tools as much as TD. For example the streamer is vital to me, so is strategy desk etc. So I'm going to keep a few bucks in TD or whatever it takes to still get that service, but most of my trading will be done in OH. I'll be using both services. One for tools, one for trading.
It opens a whole new world of option trading because of their fee structure. Like I would never in my life engage in buying 1-5 cent option contracts because it would cost me an arm and a leg. Think about it...1 cent option contract = 1 dollar...then you have to pay .75 cents for each option contract as your trading fee...well you're down 75% already...
What is fun here is to take advantage of arbitrage opportunities. Ask me about it when we meet up. I dont feel like typing it out.
But with low fees, youc an do amazing things in the option world.
usctrojanman29_IHB
New member
Good to hear, once I get some more funds I'll open up a OH account. I too like TD's streamer and strategy desk so I'll keep the TD account open too. I was thinking of the same thing as you on the option side, play around and make a few bucks on some arb plays. Let's talk more about it on Monday night.BlackVault CM said:
jbenko_IHB
New member
Seems like Obama has joined the ranks of Paulson and Geithner...everytime he speaks, DOW collapses.
What is this pathetic attempt to make it look like our billions are working and saving jobs? It's like he made it a point to go visit some people in Ohio who's jobs were saved due to this stimulus. So far only 25 people too. I'm glad it's working! GO OBAMA!!!
Notice when he shut up the DOW stopped bleeding.
I'm starting to think this guys ego is bigger than life.
What is this pathetic attempt to make it look like our billions are working and saving jobs? It's like he made it a point to go visit some people in Ohio who's jobs were saved due to this stimulus. So far only 25 people too. I'm glad it's working! GO OBAMA!!!
Notice when he shut up the DOW stopped bleeding.
I'm starting to think this guys ego is bigger than life.
usctrojanman29_IHB
New member
I don't think it's really think, I think people are beginning to realize that he is not god, can't walk on water, and can't perform miracles. People are waking up to the cold slap of reality.BlackVault CM said: