Quite a day!

[user 4295]

This won't mean much to many, but to those who do, today I closed out a trade that I have been in for about a month. Bought 10 contracts of HCR May07 55 Calls for $1.05 on Mar13th. Sold to close all 10 contracts today for $9.00! I don't trade options to hit the homerun, I like singles just fine, but it is nice to wake up to a $7+ gap overnight once and awhile!

 

[Fingers]

Way to Go!!

Haven't the foggiest what you're talking about, but it sounds exciting!! I take it you made about an 800% return on your investment? Was it a large investment?

 

[EdWort]

Sweet Deal! Congrats!

 

[TheJadedDog]

I do know what you are talking about and that sounds like a really sweet deal, way to go man!

 

[homebrewer_99]

I wish I had sold my Walmart stock when it was in the 60s...

After 911 I wanted to buy a couple thousand shares of Priceline...wife said no...1.28 went to 28.00...now it's 55.00...dang it!!

 

[Flyin' Lion]

I took a class on options trading, but it was geared more towards spreads. I paper traded a while with some time spreads, but really wasn't successful enough to try it with real money.

Johnsma22, you ever do spreads?

 

[user 4295]

Yes, I have several spread positions on right now. They limit how much you can make (max profit is the difference between the strikes - the debit) but it also helps to limit your risk. The time spreads are my favorite. I call them calendar spreads. As long as you can find a range bound stock they can be a great income stream.

I also like to put straddles on stocks that are approaching an earnings report, and have a history of movement at earnings, in order to try and capture some of the increase in volatility as earnings approaches and a day or two after earnings.

 

[Flyin' Lion]

And you learned how to do this where?

I took a class with Trade Secrets. Apparently they are ex-market makers that now teach these theories. The class was way expensive and was too generalized.

 

[the_bird]

Nice score, John!

Got a buddy at Bear telling you about the upgrade ahead of time

 

[user 4295]

And you learned how to do this where?

I took a class with Trade Secrets. Apparently they are ex-market makers that now teach these theories. The class was way expensive and was too generalized.

I've learned everything I know about trading options from Optionetics. I've attended many seminars, bought CD's, DVD's, software, you name it. Once I learned the techniques, had some discrentionary funds to get started and actually exercised my 'risk muscle', and started placing real trades, it didn't take long to break even on everything I had spent on education and then some. It sure isn't for everyone! Everything I do with my trading is systemitized to remove emotion and reduce risk. I have very strict entry and exit criterior that I NEVER deviate from.

 

[user 4295]

Nice score, John!

Got a buddy at Bear telling you about the upgrade ahead of time

I wish! To be honest bird, I didn't even know what HCR did when I placed the trade back in March. It showed up as a Wave 4 buy in my technical analysis software. I looked at some of the fundamentals, but I have learned to trust the Eliot Wave algorithm and the confirmations from some of my other favorite indicators (DMI, MACD 50-200 day MA's). Once I have confirmation it's just a matter of finding the options I want to use and placing the trade.

I will admit that I am mostly a technical trader and have a lot to learn about the fundamentals, but I'm learning as I go! No more 'analysis paralysis' for me!