The ideas that I trade by:

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trueblueTEX
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Postby trueblueTEX » Mon Jan 21, 2013 4:44 am

MightyOne wrote:Get the greeks out of the way:

http://www.amazon.com/Option-Greeks-Pla ... in+english

and then study option strategy: Iron Condors, Vertical Spreads, etc
before ending with adjusting your options positions.


Your investment strategy might then look like this:

option spreads ---> vanilla options ---> underlying

1) the spreads safely gather 'Space' and can be used alone for monthly income.
2) the space gained from spreads allows you to make long term directional plays with limited risk and unlimited profit.
3) if a trend develops then you can liquidate your options for 'Space' and trade the underlying without fear of personal loss.

With options you can:

bracket the market so that you make money if price stays within a range.

draw a line so that if price stays above/below it you make money.

make trades that you do not have to watch all day long.

& in Stocks & Futures the market actually closes! <-- saves yourself a few early gray hairs.


Ordered!

I must say, for a Forex guy you sure push Stocks and Futures a lot :lol:

I've never really considered them because I've always thought you need a lot of money to play that market.

I think I read somewhere that Stocks/Options/Futures were your bread-n-butter. Is that where you do most of your trading?

I don't know if Greek meant scalping or not but after I left Kreslik a couple of years ago, I banded together with a bunch of people around the globe following this Greek named Theo and we scalped on 2m charts and then Renko charts.

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Dillinger
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Postby Dillinger » Mon Jan 21, 2013 5:19 am

I found some good information about trading vertical spreads on stocks(apple) on this website while I was searching around for free info about option strategies.
http://aapltrader99.home.comcast.net/~a ... lcome.html
One strategy is to use credit spreads outside of the weekly average apple range to safely make small gains or gather space. Credit spreads outside of weekly/monthly average ranges mixed with a little common sense seem to be a pretty safe way to build up some space.
I have been bustin my hump trading forex around the clock to make marginal returns so for this year Im focusing on options. MO I like your investment strategy and Im with you about having the market open and close during the hours Im awake being nice. The 24 hour a day forex grind takes it toll on you
Last edited by Dillinger on Mon Jan 21, 2013 2:28 pm, edited 1 time in total.

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MightyOne
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Postby MightyOne » Mon Jan 21, 2013 6:09 am

Dillinger wrote:I found some good information about trading vertical spreads on stocks(apple) on this website while I was searching around for free info about option strategies.
optionshttp://aapltrader99.home.comcast ... lcome.html
One strategy is to use credit spreads outside of the weekly average apple range to safely make small gains or gather space. Credit spreads outside of weekly/monthly average ranges mixed with a little common sense seem to be a pretty safe way to build up some space.
I have been bustin my hump trading forex around the clock to make marginal returns so for this year Im focusing on options. MO I like your investment strategy and Im with you about having the market open and close during the hours Im awake being nice. The 24 hour a day forex grind takes it toll on you



If the market goes up, down, or sideways you make money & if the trade starts to go sour then you can still save it through adjustments; how is that not a deal that everyone wants to get in on!

The hurdle that stops a lot of people from trading advanced options is the fear factor (the Greeks); which are just a series of complicated names for simple ideas.

The power of options to generate explosive wealth is just something that you have to see for yourself:

When you buy an ATM Coffee option for $1,400 and it is worth $13,000 shortly after the open the next morning and then rises to $21,000 shortly there after.

Sometimes you make thousands of dollars from a sudden change in volatility!:

I payed 6-$700 for Bean contracts that were worth $2,300 thirty minutes later (yah ok...SELL!) shortly after that there was a sharp drop on the chart and the options were worth only a few hundred (the risks of starting with vanilla options instead of spreads!)

Personally, I have never traded stock options (this is about to change) but I believe that explosive wealth can be found there as well.

judokamak
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Postby judokamak » Mon Jan 21, 2013 11:00 am

MO, can you recomend a broker that offers demo acc for options?

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MightyOne
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Postby MightyOne » Mon Jan 21, 2013 12:31 pm

judokamak wrote:MO, can you recomend a broker that offers demo acc for options?


https://www.thinkorswim.com/tos/client/index.jsp

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Postby trueblueTEX » Mon Jan 21, 2013 3:05 pm

MO, it seems they use a number of 'squiglies' in what little I've seen so far (just started looking last night) in the options/futures arena. Are 'squigglies' more useful/accurate in the options/futures markets than in Forex or should one take the non-squiggly strategies from forex to options/futures?

judokamak
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Postby judokamak » Mon Jan 21, 2013 4:09 pm

MightyOne wrote:
judokamak wrote:MO, can you recomend a broker that offers demo acc for options?


https://www.thinkorswim.com/tos/client/index.jsp


Thank you sir.

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Postby rrobin » Mon Jan 21, 2013 9:07 pm

MO

I have not personally used TOS, but what I have seen of their plat form looks good.

The beauty of a credit spread makes options a great way to go.

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MightyOne
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Postby MightyOne » Tue Jan 22, 2013 3:27 am

I can't say that it is the best course ever (3.5 out of 5 stars), but this guy explains trading options on TOS:

http://www.amazon.com/Make-Money-Tradin ... ck+options

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MightyOne
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Postby MightyOne » Tue Jan 22, 2013 9:32 am


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