Fogel
Mr. Poopybutthole
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Call options move fast and big relative to actual share price, especially if you pick a short expiry. But they go down just as fast as they go up.
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Everything Options
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Call options move fast and big relative to actual share price, especially if you pick a short expiry. But they go down just as fast as they go up.
Sanrith Descartes
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Yep, its just that easy. As long as the stock moves the way you think it will.
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Sanrith Descartes
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This is where Delta comes into play
ShakyJake
. You use Delta to tell you how much the option price will move in relation to a $1 move in the underlying share price.
ShakyJake
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Yeah, I understand Delta and Theta decay. Well, "understand" at a basic level.This is where Delta comes into play
So I'm left wondering what are the odds of success just going with the 'hot' stock for the day and just trade the call options.
Sanrith Descartes
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I dont take the buy side of options trading so you are better off asking one of the others. I am a sell side type of guy.
ShakyJake
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Well, you can't take on the sell side unless you have the collateral to buy the underlying security, right? Unless you're doing those fancy spreads?
Fogel
Mr. Poopybutthole
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Just pick a stop loss % and stick with it, its not hard for a call option to go from -10% to -40% real quick.
Sanrith Descartes
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For calls you own the underlying stock and for puts you put up cash collateral.
Jysin
Ahn'Qiraj Raider
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Disney Delays ‘Doctor Strange 2,’ ‘Thor 4,’ ‘Black Panther’ Sequel and ‘Indiana Jones 5’
Marvel fans, prepare to wait a little bit longer to watch Doctor Strange, Thor and Black Panther in theaters.
variety.com
This is why DIS was hit today.
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Sanrith Descartes
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I really wish I wasnt weight capped on my DIS. I really want to buy more down here.
Fogel
Mr. Poopybutthole
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I'm just swinging it. Look at the chart, way too many times it's bounced from 170 to 175 within days
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ShakyJake
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Sanrith Descartes
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If your account does not have margin enabled, you are required to own the shares you sell calls against (covered calls) or have the cash to cover the puts you sell.
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Wingz
Being Poor Sucks.
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Sanrith Descartes
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Fogel
Mr. Poopybutthole
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If I'm bullish I just pick an aggressive strike when selling puts. For example I sell 15$ strikes on BCRX when it drops below 15$. It usually bounces back over 15 and I keep the premium, or I just get a stock I like at a much cheaper price.
ShakyJake
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Well, I'm playing (paper) with vertical spreads for now. And I'm trying to understand the margin required for real trading.
Screenshots from ThinkOrSwim:
Here I'm ordering a vertical spread on Amazon. As the Order Confirmation dialog shows, I could have a max loss of $345. Let's assume for the moment that I have margin enabled -- does that mean my account needs at least that amount available? Also I'm not clear on what "buying power" means.
Screenshots from ThinkOrSwim:
Here I'm ordering a vertical spread on Amazon. As the Order Confirmation dialog shows, I could have a max loss of $345. Let's assume for the moment that I have margin enabled -- does that mean my account needs at least that amount available? Also I'm not clear on what "buying power" means.