Johan
Ex got M3 in the divorce, waiting for EU Model Y!
If you think about it it's your true cost basis (if it also includes fees for buying and excercising the call).
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Newbie Options Trading
- Thread starter Jonathan Hewitt
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- investing options TSLA tsla stock
If you think about it it's your true cost basis (if it also includes fees for buying and excercising the call).
mejojo
Active Member
Yes, it makes sense, and definitely it is handy...I was just not expecting to see it in this way as in my mind, buying the call and execution of the call were 2 separate things. Of course, they aren't in reality.
Thanks again.
mejojo
Active Member
I have to say....after the past 10 days....I HATE OPTIONS. (As a newbie I was not hedged against this drop.)
Here's hoping next week brings a monster rally that makes me say I LOVE OPTIONS.
Here's hoping next week brings a monster rally that makes me say I LOVE OPTIONS.
Perfectlogic
Member
Weeklies are very hard to predict, I would recommend looking at some 2015mar calls, the IV is really low right now and we have some nice catalysts coming up with a semi depressed SP.
InTheShadows
Active Member
I agree. These are what I have been buying.
IMO the stock is at a bad place to be buying weeklies. It's halfway between its all time high and the previous low.
Predicting which way it will go right now is really difficult. I think it will be stagnating here for some time. Which, if it does, is a good time to sell options. But that's not a newbie play.
IMO the stock is at a bad place to be buying weeklies. It's halfway between its all time high and the previous low.
Predicting which way it will go right now is really difficult. I think it will be stagnating here for some time. Which, if it does, is a good time to sell options. But that's not a newbie play.
mejojo
Active Member
Aren't you glad you bought a lot of puts and sold some covered calls last week! (No, I didn't either.)
If you lost money as a newbie, that is the best that could happen to you, as you are getting very cheap and effective lesson. Small ouch.
Imagine an alternative scenario: you are on a winning streak as a newbie, making a lot of money, getting inflated sense of your trading abilities and then being hit by a large loss. Big Ouch!
I'm not very experienced with options, only 1,5 years, but I soon experienced that short time options was like casino. Gained on two weekly tickets, then lost on the next two. After that, I have only bought leaps, and never lost money on those, only paper loss. They look red now, but I expect them to get green eventually. As I see it, you need to have faith and patience :smile:
mejojo
Active Member
My particular emotional problem is that I spent a year (starting with the "fire sale") earning the price of a Model S trading shares. I even made another 20K in my first foray into options. (So, there's your *bad lesson* right there)
Now, in last 2 weeks, those gains are all gone (on paper).
Fortunately a decent percentage of what I have is farther out, but some is in January which is now coming WAY too fast......but I do have some 16 and 17 LEAPS....bought more today.
I am hoping that a return to 260+ would heal me greatly, but I pity the losses. Any advice on option value recovery?
My take away lesson from your experience is not to trade short term options, unless I have some inside information unavailable to others, or I see something special that others don't. Your takeaway lesson might be different as we are all different individuals with different risk profiles and different financial situations and goals.
More experienced options traders have various loss limiting strategies on each trade. These strategies might be worth exploring.
To put your losses a bit in perspective, it is a privileged life if one gets to participate on TMC boards discussing options trading. First world problem. More luck next time :smile:
mejojo
Active Member
Lucky you!
No matter how much money you lost, no one can take away from you that you live in a country that provides its citizens with the best opportunities for a meaningful life. A lot to be happy about!
Your betting luck might improve if you reduce the size of your bets a bit.:smile:
mejojo
Active Member
GasDoc
Member
Every cloud has a silver lining. Today I was able to buy back some 12/5 AAPL covered calls that I sold that had run away from me.
Question for you guys!
Is trading oil option contracts via USO more dangerous than meets the eye? I see that Jan 2017 for $20-$30 strikes are relatively inexpensive (compared to Tsla!) and if I think oil will recover by then, then am I missing something? Wasn't sure if there was something I was missing (other than the usual turmoil of oil and whatnot).
Thanks!
Is trading oil option contracts via USO more dangerous than meets the eye? I see that Jan 2017 for $20-$30 strikes are relatively inexpensive (compared to Tsla!) and if I think oil will recover by then, then am I missing something? Wasn't sure if there was something I was missing (other than the usual turmoil of oil and whatnot).
Thanks!
Anyone think things are looking eerily similar to January 2014, when things exploded coming out of NAIAS? I recall some good $ being available in option plays then.
Any perspective from anyone on how expensive options are now compared to a year ago? Both longer term LEAPS and maybe intermediate term like March or June. And if you have data or memory, the weeklies for January/February? I heard they are several more times expensive on some video recently, not sure how good that data is.
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