DS Goes Options Trading

[Dismal Science]

Inspired by GomerTree and Sadman I am going to start a trading journal where I enter in my options trades in real time. I don't have specific criteria or a "system" like Gomertree so this should be interesting. Of course any constructive criticism is appreciated. Many of these will simply be punts.

To start, I'll enter some of my current positions and the dates / prices I entered them.

SPECULATION TRADE
12/21/2011 SELL 15 AAPL $350 PUTS @ $1.74

PROTECTIVE SPREAD TRADE - I also own GME
12/23/2011 BUY 11 GME $24 PUTS @ $.88
12/23/2011 SELL 11 GME $21 PUTS @ $.08

PROTECTIVE SPREAD TRADE - I also own USO
1/3/2012 BUY 8 USO $39 PUTS @ $.91
1/3/2012 SELL 8 USO $37 PUTS @$.36

From now on I will try to keep this in real-time.

[Dismal Science]

I also still need to try and get approval for selling naked calls - or switch brokers.

[axjoke]

Originally Posted by Dismal Science

PROTECTIVE SPREAD TRADE - I also own GME
12/23/2011 BUY 11 GME $24 PUTS @ $.88
12/23/2011 SELL 11 GME $21 PUTS @ $.08
.

I assume you didn't pay fees to sell the 21 puts. Usually there is a flat fee plus per contract. Were both fee's waved on the second order or just the flat fee?

Are these after expense or are you getting penny bid/ask where you trade at? Interactive is the only place i've used that let you do orders in penny ticks but I'm sure there are other brokers as well.

Good luck!

[Dismal Science]

Originally Posted by axjoke

I assume you didn't pay fees to sell the 21 puts. Usually there is a flat fee plus per contract. Were both fee's waved on the second order or just the flat fee?

Are these after expense or are you getting penny bid/ask where you trade at? Interactive is the only place i've used that let you do orders in penny ticks but I'm sure there are other brokers as well.

Good luck!

I currently use E*Trade - though I need to switch since their fees are much higher than competitors. For spreads they charge 1 flat fee then a per contract fee.

They have penny bid/ask

[axjoke]

Originally Posted by Dismal Science

I currently use E*Trade - though I need to switch since their fees are much higher than competitors. For spreads they charge 1 flat fee then a per contract fee.

They have penny bid/ask

Ah, didn't realize those stocks all have options that trade in pennies.

Per contract fee is probably 75 to 100 cents isn't? Paying a penny per share to sell a put for 8 cents is going to be really expensive in the long run.

[Dismal Science]

Also have a new trade:

COVERED CALL
1/5/2012 SELL 6 GME $26 CALLS @ $.26

[gomer_tree]

Let's get all this out of the way now so you can carry on:

You're gambling.

Trading isn't investing.

If you use R and run a Gaussian probability something or another it shows that you'll break even just after you end up broke.

Buy and hold.


I think that pretty much covers it.




Seriously, though... good luck. I'll keep tabs.

[axjoke]

Originally Posted by gomer_tree

Let's get all this out of the way now so you can carry on:

You're gambling.

Trading isn't investing.

If you use R and run a Gaussian probability something or another it shows that you'll break even just after you end up broke.

Buy and hold.


I think that pretty much covers it.




Seriously, though... good luck. I'll keep tabs.

Throw in rather large fees and spreads and it happens a lot faster.

[Dismal Science]

Originally Posted by axjoke

Throw in rather large fees and spreads and it happens a lot faster.

I agree that the fees are high - I'll probably switch to Options House after 1/21 (once these positions expire).

Selling those AAPL puts should cover any losses on the other positions and then some this month. I'll keep track of the options gains / losses at expiration each month.

[Dismal Science]

Another trade executed yesterday:

1/5/2012 BUY 9 GME $24 PUTS @ $.41