So who's keeping me company

danzik17 · 05-01-2008, 09:31 PM

I know I'm not the only one thats going to be up until around 4-5AM doing projects that I put off until the last minute and are due at 9:30AM on the last day of classes. Fess up.

DOMS · 05-01-2008, 09:44 PM

I'll probably stay up until 11 PM. I don't have any trades that require me to be up at opening bell (thought I will place a straddle on JPM), or any other obligations.

danny81 · 05-01-2008, 09:50 PM

Im suspended tomorrow so ill be up late tonight. =)

danzik17 · 05-01-2008, 09:53 PM

How is the trading going for you. I'm hoping BAC drops like a stone tomorrow but who knows. I do want to jump in before the ex-dividend date, but I'm just hoping for a point or two discount from where it is right now. 37.50 and I would buy.

DOMS · 05-01-2008, 10:13 PM

Quote:

Originally Posted by danzik17

How is the trading going for you. I'm hoping BAC drops like a stone tomorrow but who knows. I do want to jump in before the ex-dividend date, but I'm just hoping for a point or two discount from where it is right now. 37.50 and I would buy.

I take it that you trade stocks? I trade options.

I've come to prefer non-directional strategies like Iron Condors and Straddles.

So far I've only done four trades.

1. Lost $30. But that was the plan. I chose a low probability trade (likely to fail), that had a low risk/reward. My point was to get my first taste of trading and my first taste of failure up front. This is was such a damn good choice.

2. Lost $90. I made a real n00b mistake. I placed a bear put spread on KO. But I bought the front month when I should have bought a month or two out. Between the small upward movement of the stock and theta decay, I had to close the trade and take a loss. Sure enough, the stock played out just like I thought it would (it was trading in a channel and I bought at the top). It broke down two and a half dollars. I made a mistake, but I was still right.

3. An Iron Condor on KO. This trade is still open, but I got an opening credit of $210 (total). Of which $153 has been eaten away by time decay (theta). I'm going to hold this position until the following Friday. I'll have a profit of around $190 by then. The margin on this trade is $750. So that would mean I'd have a ROC of a tad over 25%. None too shabby, I think.

4. A profit of $158 so far. A June 50 straddle on NRG. I sold the put half of the straddle today for a profit of $158. The call portion has an unrealized loss of $50, but I have over 40 days for the underlying to move back up and possibly make some of that back. The June 50 call is selling for $0.05 right now. So there's no reason to close the trade. It's not worth it.

5. This trade I'll probably place tomorrow. It'll be a 50 straddle on JPM. But I'll only place it if the implied volatility stays where it is tomorrow and the stock price comes within 8 cents of $50. It's currently at $49.25. I've come to consider straddles as very low risk trades.

BAC has some crazy after-hours trading going on. Look at the past month, from strictly a technical viewpoint, you should see some sort of retracement.

danzik17 · 05-01-2008, 10:24 PM

For now I'm sticking with stocks, in the future that will change.

Right now the potential for picking up solid companies that are paying great dividends is too good to give up. If I build a good base of solid dividend paying companies, then I can keep rolling those dividends into more and more stock in addition to any natural growth.

DOMS · 05-01-2008, 10:27 PM

Quote:

Originally Posted by danzik17

For now I'm sticking with stocks, in the future that will change.

Right now the potential for picking up solid companies that are paying great dividends is too good to give up. If I build a good base of solid dividend paying companies, then I can keep rolling those dividends into more and more stock in addition to any natural growth.

A sound plan. Much like my own plan, you'll make money even if the market stays flat. Although, I'm really looking forward to a mini bear market. I can make a lot of money there.

soxmuscle · 05-01-2008, 11:31 PM

Last final was tonight, thankfully.

Got a tough weekend ahead with the moving though, at least we'll have a nice free night tomorrow though.

Plateau_Max · 05-01-2008, 11:39 PM

I'm up because where I'm at, it's 8 hours ahead of time. It's 8:46am here, May 2nd

danzik17 · 05-01-2008, 11:42 PM

So you are 8 hours into the future eh.....

Tell me what the stock market is doing at 10AM and I'll buy and sell with everything I have. It's the perfect scam!

If you can find out what tonight's lottery numbers are and let me know, that'd be great too.

Plateau_Max · 05-01-2008, 11:44 PM

Turn your clock up 8 hours and do it yourself

danzik17 · 05-01-2008, 11:45 PM

Brilliant!

lnvanry · 05-02-2008, 02:10 AM

took my last final yesterday...thank God.

Its going to be a week at the pool with cheap light beer for me...then I'm off to DC for the summer

DOMS · 05-02-2008, 08:52 AM

I could kick myself. JPM opened right at $50 (hasn't been back since) and has already broken down a $1.25. I guess I should have gotten up for opening bell.

danny81 · 05-02-2008, 11:41 AM

DOMS your a stock trader?

DOMS · 05-02-2008, 11:43 AM

Sort of; I trade options.

danny81 · 05-02-2008, 12:21 PM

OO werd.

goob · 05-02-2008, 01:51 PM

Quote:

Originally Posted by danny81

OO werd.

'00werd'??? Is this the hood version of Bond?

DOMS · 05-02-2008, 01:53 PM

maniclion · 05-02-2008, 04:36 PM

Quote:

Originally Posted by danny81

OO werd.

Danny, hows the futures in 40oz OE and 9mm bullets looking? You think I should invest in companies that provide goods to prisons, do you see a rise in crime soon with the economy dropping? Yeah I think thats what I'll do put some money on Prison uniform manufacturers and butthole stitching thread.....