Can You Make Money Option Trading Level 1 ?

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PARA $12 Call 17 Apr $0.27 x $0.29 BTO $0.28

HTGC $22 Call 17 Apr $0.25 x $0.30 BTO $0.30

Added to the htgc position with a shorter time call, it looks to have more upside potential near term.

 

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ASC $12 1/2 Call 18 Jul $0.35 x $0.50 BTO $0.50

 

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VITL $25 Put 21 Mar $0.10 x $0.20 BTO $0.15 (2)

 

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LYG $4 Call 17 Apr $0.05 x $0.10 BTO $0.09 (3)

 

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VITL $25 Put 21 Mar $0.15 x $0.30 STC $0.23 (2)

 

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Most recent trades. Closed the KGC at $0.91, but took an opposite direction short term. Time to look more closely at how to choose better in current conditions. Too many trades failed to produce a profit.

 

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AEVA had 5 gaps from $2.50 to $7.50 in 10 trading days. Volume profile shows lots of overhead until high $8. Is this last gap an exhaustion?
AEVA $5 Put 16 May $0.15 x $0.20 BTO $0.16

 

[sideways-sid]

To answer your original question, yes you can make money buying to open.

I had a journal doing similar; although mainly options on index futures instead of equities.

S

Post in thread 'Global Options Trades'

Apr 12, 2019

A final update.

The last 130 trades, mostly detailed here over the last six months have produced an average return of 11.9% in 22.6 days. Below backtested average, but still just over 500% on an annualised basis, which is not too shabby.

This thread has had >8000 views, but only three comments other than mine, which doesn't suggest there is much interest in it.

In addition to the long options positions detailed here, I trade futures on bollinger breakouts which is accretive to returns, and have recently started trading weekly credit spreads on the same securities, which has made my...

• sideways-sid

In my experience you'll do better significantly better trading spreads though.

 

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Sid, Thank You! I truly appreciate the comment and the insight especially from your thread. I will look up your thread and read it. I had hoped that others would comment and help refine this as a means for people to supplement their incomes. In level 1, I think it might be possible to initiate a straddle around a news release, but that requires watching intraday.

I am currently looking at 1 day per week of active trading and using 0 DTEs. I'm looking at the SPY. Of course the SPY daily is currently in an expansion phase. My thoughts, when it exits this expansion is it going to retest highs or down to 514?

 

[sideways-sid]

I think you might benefit from stepping back, then focussing on what you're trying to achieve and then how you do so.

Your first post mentioned 60-90DtE. But then you don't mention how the trades in subsequent posts went.

RULES:

All options that I purchase will have 2 to 3 months of life, 1 level out of the money, and cost no more than $1 + or -. One option contract at a time. Focus on the KISS principle and don't deviate. The more complicated I make it, the more times I am wrong, thus KISS.

You later say:

Recently in a T2W journal by Brett Bot, he disclosed that new 52 week lows on good companies typically bounce 10%, and I have started to test this with an option in SWBI. here's that trade BTO:

Plenty of opportunities to deploy that now, but you haven't shown if your testing showed positive P&L at what Sharpe.

But a few months later you're exploring 0DtE.

Perhaps decide where your edge is by backtesting with as much historic data as you can get hold of, and then deploy trades to monetise it.

 

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Sid, thank you. I had already started looking closely at the trades I've taken but far more importantly at the time frames of particular stocks trade best. This is why I've considered the idea of giving up one day per week to sit at a computer to "day trade". Many stocks appear to be trading around 4 hour timeframes. As to back testing, that is not something I care to do. Same as posting my account P&L for anyone that might be interested. It's implied that if I did not post a STC, then the option expired worthless.

 

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Something to consider with all the tariff talk from politicians. The world will have increased cost from these and reduced discretionary funds. People still need the 5 basic things to survive or thrive. Others are seeing this and hopping on TDUP, which has been going higher while the markets sell off. It might be a short term upside, but long term it also looks good. the question is; buy the stock? or buy options?

FYI..

 

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SPY trade today.

 

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If you look at some of my "wins" you'll notice that I exited far too early and left too much on the table. While reviewing these trades and trying to find a way to stay in longer for the bigger gains. One thing I tried to learn long ago was Elliottwave, but even the so called experts had problems. I learned of Prof. Aldo Lagrutta and his teachings. Prof. Aldo Lagrutta doesn't try to "curve fit" as I have taken some of his FREE lessons and applied them. His Elliottwave teachings include the use of Fibonacci. I have scheduled myself for a 60 day mentorship very soon, which wasn't very expensive.

I chose 2 markets;

ACAD which has a probability of hitting $38, and bought an option which was very hard to buy as the market maker is very alert. According to Schwab news, RBC recently raised it's target to $39 from $38. ACAD $23 Call Sept $0.95 x $1.95 BTO $0.95

EUR/USD which has a strong possibility of $1.30 according to Elliottwave & Fibonacci According to Carolyn Borden's teaching I should watch closely as it gets to $1.20 area. This I'm trading very small, but will add to position at every pullback.

As a note only. I applied this to a SPY chart and it shows 2 possibilities; $547 and $566

 

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First, fixing a typo. The Spy possibilities are $647 & $666.

If I have done my EW & Fib work correct, then BKV should go to $25.63 area. So this trade;
BKV $25 Call Aug $0.10 x $0.60 BTO $0.35 (2)

Have been thinking about AI, EVs, Robots, etc and what are all these going to need. These things are going to consume a lot of copper, and tin. Last nite James Hickman @ Schiff Sovereign's email confirmed the low supply of tin for solder. Did some research and here's what I found. Last night it was quoted at $0.03, today $0.10. When It falls back down, going to buy just 10000 shares and give them to my niece.

from wiki:
PT Timah Tbk (OTCMKTS: PTTMF)

PT Timah Tbk is a state-owned Indonesian tin stock primarily engaged in tin production and smelting operations. Founded in 1976 and headquartered in Bangka, Indonesia, PT TIMAH operates as a subsidiary of PT Indonesia Asahan Aluminium (Persero).

The company’s activities encompass exploration, mining, processing, and marketing of tin.

PT TIMAH also produces and sells non-tin items like coal, nickel, quartz sand, and various tin products including Banka, Mentok, and Kundur tin.

Besides mining, the company is involved in construction, agricultural trading, real estate, transportation, and engineering services.

PT TIMAH is one of the largest tin producers globally, playing a crucial role in the tin sector.

The company’s diverse operations and strategic focus on tin production and smelting highlight its significant contribution to the tin industry.