Stock options

**fattymcbutterpants** · 10-21-2011, 01:40 AM

Do any of you guys that invest play with the options market any? I just recently got into it. I learned for awhile before ever making a trade but my first one made me a 45% profit roughly but I have lost money on a few since then. Any of you all have anything good you are playing right now?

Oh as a disclaimer I am not trying to give out or take advice on buying or selling any stocks. This is for informational purposes only of course. Lol

**Flier** · 10-21-2011, 02:55 AM

So you got started, cool

What is your strategy?
I´ve done very well by writing (selling) strangles (a Put and a Call in a combination).
I pretty much solely use Futures on the S&P 500.
I am very regimented, and follow my rules to a tee.
Currently placing strangles on January S&P options.
Have to look up the numbers, but today probably the 1330 Call and the 970 Put (just guessing, have to do my calculations first)

**SlimmerMe** · 10-21-2011, 07:08 AM

Have a cousin who does and and as wild and free as he appears he is full of strategy. Says he makes sure he sees both cheeks in the mirror first. And he lives and breathes it 24/7 as he plays hard 24/7 too.

***FireGuy*** · 10-21-2011, 07:14 AM

I have been writing covered calls just out of the money recently and have been doing very well with that strategy.

**fattymcbutterpants** · 10-21-2011, 08:10 AM

I have written some covered calls on BAC and then bought calls on HRBN that's where most of my options money was made. I like cheap calls though, those get me so excited when they take off.... If they do of course lol. I haven't gotten into spreads much yet. I have to get my options trading level bumped up so I can take full advantage

**fattymcbutterpants** · 10-21-2011, 08:29 AM

I would love to buy on Thursday before expiration when calls are at 2 cents and then watch them jump to 30 cents the next day occasionally lol. That takes some serious luck though and doesn't work out very often.

***FireGuy*** · 10-21-2011, 08:38 AM

A .02 option is going to need a stock to literally explode to go to .30 cents in one day. Better odds playing the lotto. Unless there is a buyout announcement that just doesn't happen. A stock would need to be WAY out of the money for a .02 option.

**fattymcbutterpants** · 10-21-2011, 08:46 AM

Yesterday ford $12 calls closed at $0.02 when the stock was at about $11.80, then today it made it to 31 cents I believe because ford went up into the $12's. I've seen it happen with Cisco several times also where it jumps up overnight practically. It's just when you can find the closest price to the strike but still pay almost no premium that it happens. But your definately against the odds lol

***FireGuy*** · 10-21-2011, 08:59 AM

If you really think a stock is going to pop your much better in the long run buying your calls already in the money. Yeah, you can hit the Home run every now and then buying the super cheap ones hoping to catch lightning but keeping the odds in your favor pays off more in the long run.

**musclestack** · 10-21-2011, 09:27 AM

Can anyone let me know where I can read up on this and learn more about it? Interested in looking in to it...

**VegasRenegade** · 10-21-2011, 10:30 AM

Opptions for anything but gambling money is very risky. If you are going to do it Covered Calls are the safest. I do a lot of investing and a lot of gambling I seldom mix the two however I do some time do covered call as a hedge.

**fattymcbutterpants** · 10-21-2011, 10:32 AM

Fireguy you are definately right that is a safer bet. Next drop we get in the market from all these euro issues I might try an do that. Just find some stocks that should be heading back up soon and consider that. I am not able to trade puts I don't believe right now just buy and sell calls, but I understand the puts. I just have to apply to etrade for it. Or I am debating on moving some money to either optionhouse or tradeking.