<p>“I missed aapl today.” Unfortunately I didn’t. Yesterday I sold 101 puts expiring on 9/5. It will bounce back somewhat tomorrow. I’ll have to roll it out which is of concern to me as I would expect aapl to sell off after 9/9 but maybe this time since it sold off before which it typically doesn’t, I’ll be pleasantly surprised.</p>
<p>It is annoying to sell puts and the next day the stock takes a hit. </p>
<p>Well…you cant be down that much…
And the stock is stable in the after market…</p>
<p>And you are right… The stock can still rise…</p>
<p>I think the phone is going to be pretty sweet.
I like the size of the smaller phones but I think my eyes will like the larger phones. :)</p>
<p>yeah you’re right - only down $3800 in one day</p>
<p>There is a trade I like in aapl…</p>
<p>If I was short the 101 puts…</p>
<p>I think I would do this trade for 2 days…</p>
<p>If the stock was 99…</p>
<p>Buy the 98-99 call spread…sell the 100-101… A condor…right? </p>
<p>You can do that trade for less than .30? </p>
<p>I would do that trade if…I was short at least 5 puts…maybe 10.
Because the commissions are ugly. </p>
<p>Doct, do you have an ira account at Schwab?</p>
<p>Schwab has certain levels …level 0, level 1, level2, and level 3. </p>
<p>I am a level 1 in my retirement accoint so I can trade level 0 and level 1 trades. Level 2 trades are spreads and the spreads may have a slightly higher probabilty of losing. I am not sure about that. But unless a trader goes crazy and trades too many spreads…the dollar risk is lower in level 2 than in level 0 which has covered calls. </p>
<p>I just shake my head. I would like to trade spreads in my retirement account so the taxation mess will not exist. </p>
<p>Trading a little bigger doct…</p>
<p>Down $3800 is not fun…</p>
<p>There are variations of the above trade…</p>
<p>If the stock started rallying I wouldnt necessarily do the above trade.</p>
<p>Well I made the money back in another account so I was roughly even today.</p>
<p>That’s Good!</p>
<p>
</p>
<p>I can trade spreads in my Roth IRA at TD Ameritrade. That’s the account where I have $2000 budgeted for all my itty bitty trades while I practice buying and selling spreads. I also sell covered calls and don’t count them as part of my spread budget Maybe I’ll try your AAPL condor trade. </p>
<p>When you say “for 2 days” do you mean that you’d buy weeklys that expire on Friday? or that you would trade in options a little farther out but plan to close them out in 2 days? </p>
<p>I like TD Ameritrade’s trading platform because I can set up a limit order on a spread overnight and simply specify net debit (or net credit I wanted to play that game again.) Then the computers figure out if the trade works. </p>
<p>I’ve got AAPL in my taxable account. I bought it in June at 91. Seemed like a no-brainer at the time. My math tells me I’m still doing just fine with AAPL. </p>
<p>“I can trade spreads in my Roth IRA at TD Ameritrade. That’s the account where I have $2000 budgeted for all my itty bitty trades while I practice buying and selling spreads. I also sell covered calls and don’t count them as part of my spread budget Maybe I’ll try your AAPL condor trade.”</p>
<p>I dont know if this is Schwab’s policy not to allow spreading or I just wasnt proactive enough. I am going to point this out to Schwab that other firms allow this. </p>
<p>There are a lot of commissions In this trade and there may be exercise and assignment costs too…</p>
<p>Stock has to be around 99 because…</p>
<p>The trade can lose…aapl below 98.30 or above 100.70 and the trade is a loser and that is before commissions. </p>
<p>When you say “for 2 days” do you mean that you’d buy weeklys that expire on Friday? or that you would trade in options a little farther out but plan to close them out in 2 days?</p>
<p>Weeklys that expire in 2 days. Next week is a whole new game. With the announcement on the 9th there could be some volatilty next week. </p>
<p>I like this trade because it lowers the breakeven of the put sell. Can make some money back. If the stock rises above 101… You are just out the .30 plus commissions. </p>
<p>Its gambling. If you think the stock is going to bounce back less than 2 points in 2 days …it is a pretty good trade. If you think the stock is going to bounce back more or drop more…not so good. Doct mentioned the stock is going to bounce back…that is why I mentioned this trade.</p>
<p>A trader could just buy the 98-99 call spread if the trader thinks the stock will bounce back. I guess the trader can just buy calls. </p>
<p>Nice buy in aapl. Very nice. </p>
<p>Put the trade in the computer and see what the computer says, :)</p>
<p>Will the computer give a probability of success?</p>
<p>"Doct, do you have an ira account at Schwab?</p>
<p>Schwab has certain levels …level 0, level 1, level2, and level 3."</p>
<p>I do no have an ira account at Schwab but a regular account that is level 3 which I think mean’t that I couldn’t sell naked calls which I would never do anyway. My etrade ira acct is level 3. I’ll think about your trade suggestion.</p>
<p>After a big down day, a stock frequently has a bounce back which I think is warranted in this case,</p>
<p>Depends on the stock price… Depends on the costs…</p>
<p>Every strategy depends on the above…</p>
<p>You can do a variation…</p>
<p>I am not really trying to tell people what to do…I don’t like that.</p>
<p>I am just really throwing a strategy out and you can think about it and make it your own… Or not do anything. </p>
<p>I think knowing various strategies are good and maybe something like the above will come in handy another time…</p>
<p>Everybody should make strategies their own and do what is comfortable. </p>
<p>There are plenty of strategies I am not comfortable with and I wont do them.</p>
<p>Ok…I am talking too much…</p>
<p>“After a big down day, a stock frequently has a bounce back which I think is warranted in this case,”</p>
<p>Yes…</p>
<p>
</p>
<p>Scottrade doesn’t in their main accounts… but they do allow customers set up a retirement account in their OptionsFirst accounts. So it is possible. </p>
<p>
</p>
<p>Yeah, I figured it out. But it was a good learning exercise to explore the idea. I guess sometimes I can learn without spending the money. </p>
<p>Plus I think there’s a good chance of a big bounce tomorrow with AAPL. I won’t be surprised if it closes on Friday at 102. </p>
<p>In my totally inexpert and novice trader experience, I’ve observed that when a large cap well established stock has a big drop or bounce on one day without a particularly good reason, it tends to bounce back the other direction the next day … unless there happens to be something else like a broad market selloff going on…</p>
<p>The reason that I asked about the option expiration is that the broker charges me double the regular commission on an assignment or exercise – so for the number of contracts I buy, that’s eating up the potential profit right there. I mean, I was thinking about setting it up with about 5 contracts - that trade would cost $190 to enter ($165 debit + $25 in commissions) – and then it’s $19.99 for an exercise or assignment… That’s why I’d rather avoid letting the spreads go to expiration. Counting the commissions its generally cheaper for me to close out a short option when I’m setting up these small-contract spreads. </p>
<p>
</p>
<p>In my totally inexpert and novice trader experience, right after a 7:1 split is often a good time to pick up a stock. </p>
<p>I don’t know a darn thing about buying stocks.</p>
<p>But I’m pretty clear on the concept of shopping the clearance racks </p>
<p>Lol!</p>
<p>You know stuff about stocks. </p>
<p>Commissions can be killers.</p>
<p>Well… If aapl is 102 on Friday, that trade is a loser. :)</p>
<p>I think I’m going to have to do a dance on these 101 weekly aapl puts. In the taxable account in which they’re located, I cannot do complex option trades - condors, butterflies etc. In my ira, I can, so perhaps I can take the loss in the taxable account and the gain from another trade in my ira. </p>
<p>Aapl looks ok…</p>
<p>I did not get my act together…</p>
<p>i called Schwab. They want to integrate options express before they allow spreading in iras.</p>
<p>Well I just gambled. I bought back the 9/5 101 puts and sold the 9/12 99 puts for .47 gain. Yeah I know I should have waited until tomorrow when the time value of the 9/5 put had completely decayed but sometimes I’m irrational.</p>
<p>:) We all are irrational sometimes. People who don’t believe that are delusional too. :)</p>
<p>Good luck…</p>