Anyone Here Do Options Trading?

[SHARK]

Can any of you explain it simply? I'm watching videos on it but still can't understand. Is it even worth doing?

 

[Shodredux]

1 option contract = 100 stocks , so you are basically leveraging the stocks, but the contract will expire at a certain date

 

[SHARK]

1 option contract = 100 stocks , so you are basically leveraging the stocks, but the contract will expire at a certain date

Can you give an example. Like "i buy an option at $50 and the stock goes up 10% within the contract period and I sell and make x dollars"

 

[Shodredux]

Can you give an example. Like "i buy an option at $50 and the stock goes up 10% within the contract period and I sell and make x dollars"

Since you effectively own 100 stocks, if the stocks goes 1% above the call price, you will make 100% return, but if the stock does not reach the call price( within the contract period) , then you lose all the money

 

[TheMewingBBC]

Since you effectively own 100 stocks, if the stocks goes 1% above the call price, you will make 100% return, but if the stock does not reach the call price( within the contract period) , then you lose all the money

It does not necessarily have to reach or pass the strike price for you to profit, various factors comes to play. Whether the contract otm, itm, the volume, theta value, the iv increasing since you bought it. I will give you an examples of one of my plays


I bought 20 put contracts for 400 (premium is like 10 to 15 cents) at a strike price of 60 expiring April 17. The underlying price was 90 at the time. The underlying price drop to the 70 zone, and now the contracts I bought for 400 are now worth 5,000. Prices can increase/decrease by Delta.

Also price of particular option can move 50-200% without the underlying price moving significantly: usually because of an increase in volatility (especially if it lack theta value, a so called ”FD” for example) or the direct increase or decrease in demand of that particular option, which tho is influence by volatility

 

[SHARK]

It does not necessarily have to reach or pass the strike price for you to profit, various factors comes to play. Whether the contract otm, itm, the volume, theta value, the iv increasing since you bought it. I will give you an examples of one of my plays


I bought 20 put contracts for 400 (premium is like 10 to 15 cents) at a strike price of 60 expiring April 17. The underlying price was 90 at the time. The underlying price drop to the 70 zone, and now the contracts I bought for 400 are now worth 5,000. Prices can increase/decrease by Delta.

Also price of particular option can move 50-200% without the underlying price moving significantly: usually because of an increase in volatility (especially if it lack theta value, a so called ”FD” for example) or the direct increase or decrease in demand of that particular option, which tho is influence by volatility

Such high returns must mean the risk is higher, correct? How much $ do you recommend I start with, and what resources to learn do you recommend?

 

[TheMewingBBC]

Such high returns must mean the risk is higher, correct? How much $ do you recommend I start with, and what resources to learn do you recommend?

I went back to my moneymax thread to copy the resource, and then I came across your post again

Dude nobody is gonna make money with this shit. This is all "how to make money online 101" type shit that is saturated as fuck. You need to find a niche industry that isn't being taught yet to make big money relatively easily. And if you find it, you aren't gonna go around telling everyone about it.

Change your mind didn't you?


Ok ok. Yes it's mostly a high risk high reward game. As for money to start with, I recommend having a margin of risk and not risking more than 5% of your capital into a single trade. There are contracts usually ranging from 50 (very otm depending on the stock) to thousand per contracts.

Resources

projectoption

projectoption is an options trading education and statistics YouTube channel that is growing at a rapid pace due to the successful delivery of high-quality, ...

m.youtube.com

And
optionstrading.org

 

[SHARK]

I went back to my moneymax thread to copy the resource, and then I came across your post again

Change your mind didn't you?


Ok ok. Yes it's mostly a high risk high reward game. As for money to start with, I recommend having a margin of risk and not risking more than 5% of your capital into a single trade. There are contracts usually ranging from 50 (very otm depending on the stock) to thousand per contracts.

Resources

projectoption

projectoption is an options trading education and statistics YouTube channel that is growing at a rapid pace due to the successful delivery of high-quality, ...

m.youtube.com

And
optionstrading.org

I didn't change my mind this is just more convenient than driving to the casino jfl. Thanks for the explanations

 

[TheMewingBBC]

I didn't change my mind this is just more convenient than driving to the casino jfl. Thanks for the explanations

Translation: I changed my mind

 

[Seth Walsh]

I didn't change my mind this is just more convenient than driving to the casino jfl. Thanks for the explanations

It's very difficult and takes a lot. I spent maybe 8-12hrs learning about everything I've shared on here about looksmaxing/anti-aging etc, because admittedly, I just found the info on the internet and interpreted it and relayed it here and my interest in that stuff let it consolidate into my long term memory.

On the other hand I've spent probably 5000-6000hrs+ learning about capital markets, options, financial derivatives etc. Learn about risk management and the psychology of trading before you get started with anything. Never risk money you can't afford to lose and don't expect anything. It's just playing a game numbers/strategy/chance/probability without feelings and emotion. You can't afford to get emotional, fearful or greedy, over over-trade, or do anything that'll even slightly mismanage your risk. You really need to be on top of your game all the time and trading requires a huge amount of commitment and attention to detail. Risk management is the most important of all. Anton Kreil's channel posted a new video which is well presented. But honestly I still don't know how to give advice to someone who wants to get started, because I don't know who they are or what personality type they have; and neither do they, as they haven't any experience in the space. Start slow and MANAGE YOUR RISK. Risk/Reward = paramount.

Think of your trading R/R as your dopamine system. Go for delayed gratification. Instant gratification will always backfire. Disrespecting time will always backfire. Watch Van Tharp's videos on position sizing; they're very important as sizing is essentially a necessary extension in your risk management. The Kelly Criterion is a very nice model for showing how risk should be managed.

Look into Modern Portfolio Theory and the Markowitz Portfolio Optimization model and learn about the efficient frontier etc.

Being a buyer of options isn't very favorable. Being an options seller on the other-hand can be quite lucrative, but equivalent to picking pennies off a train track. Matter of time before you get hit by the steam engine... even if that happening would be a "Black Swan Event"... Look at what happened to optionsellers.com last year.... $300M lost in a day. And why?: Greed & Lack of Risk Management. Always comes back to that!

 

[SHARK]

Translation: I changed my mind

Majority of people will not make a lot doing this. My stance has not changed on that at all. I'm just gonna play around with 50-100 bucks then stop.

 

[TheMewingBBC]

It's very difficult and takes a lot. I spent maybe 8-12hrs learning about everything I've shared on here about looksmaxing/anti-aging etc, because admittedly, I just found the info on the internet and interpreted it and relayed it here and my interest in that stuff let it consolidate into my long term memory.

On the other hand I've spent probably 5000-6000hrs+ learning about capital markets, options, financial derivatives etc. Learn about risk management and the psychology of trading before you get started with anything. Never risk money you can't afford to lose and don't expect anything. It's just playing a game numbers/strategy/chance/probability without feelings and emotion. You can't afford to get emotional, fearful or greedy, over over-trade, or do anything that'll even slightly mismanage your risk. You really need to be on top of your game all the time and trading requires a huge amount of commitment and attention to detail. Risk management is the most important of all. Anton Kreil's channel posted a new video which is well presented. But honestly I still don't know how to give advice to someone who wants to get started, because I don't know who they are or what personality type they have; and neither do they, as they haven't any experience in the space. Start slow and MANAGE YOUR RISK. Risk/Reward = paramount.

Think of your trading R/R as your dopamine system. Go for delayed gratification. Instant gratification will always backfire. Disrespecting time will always backfire. Watch Van Tharp's videos on position sizing; they're very important as sizing is essentially a necessary extension in your risk management. The Kelly Criterion is a very nice model for showing how risk should be managed.

Look into Modern Portfolio Theory and the Markowitz Portfolio Optimization model and learn about the efficient frontier etc.

Being a buyer of options isn't very favorable. Being an options seller on the other-hand can be quite lucrative, but equivalent to picking pennies off a train track. Matter of time before you get hit by the steam engine... even if that happening would be a "Black Swan Event"... Look at what happened to optionsellers.com last year.... $300M lost in a day. And why?: Greed & Lack of Risk Management. Always comes back to that!

”Learn about risk management and the psychology of trading before you get started with anything. Never risk money you can't afford to lose and don't expect anything. It's just playing a game numbers/strategy/chance/probability without feelings and emotion. You can't afford to get emotional, fearful or greedy, over over-trade, or do anything that'll even slightly mismanage your risk. You really need to be on top of your game all the time and trading requires a huge amount of commitment and attention to detail. Risk management is the most important of all.”

1.) Risk Management
2.) skills
3.) being consistent with your skill and being objective over emotional

Risk Management is indeed the most important of them all. It what's keeps you in the game, you don't have to worry about losing money like most traders if you exercise strict risk management

Majority of people will not make a lot doing this. My stance has not changed on that at all. I'm just gonna play around with 50-100 bucks then stop.

So you're treating it as gambling??

 

[Deleted member 5293]

Majority of people will not make a lot doing this. My stance has not changed on that at all. I'm just gonna play around with 50-100 bucks then stop.

you will lose it

 

[Tony]

 

[Deleted member 2506]

”Learn about risk management and the psychology of trading before you get started with anything. Never risk money you can't afford to lose and don't expect anything. It's just playing a game numbers/strategy/chance/probability without feelings and emotion. You can't afford to get emotional, fearful or greedy, over over-trade, or do anything that'll even slightly mismanage your risk. You really need to be on top of your game all the time and trading requires a huge amount of commitment and attention to detail. Risk management is the most important of all.”

1.) Risk Management
2.) skills
3.) being consistent with your skill and being objective over emotional

Risk Management is indeed the most important of them all. It what's keeps you in the game, you don't have to worry about losing money like most traders if you exercise strict risk management

So you're treating it as gambling??

yo a guy dmed me saying ur a master larp but i think ur legit

how much have u made off stocks/ trading so far

 

[TheMewingBBC]

yo a guy dmed me saying ur a master larp but i think ur legit

?? Who