Boiler Room: The Official Stock Market Discussion

[MrFantastic]

Thanks bro

That's good info

Its mainly about your risk tolerance and confidence i think. high tolerance and confidence should be enough to stomach options but if youd rather have long term steady gains then stocks. Id rather by long term options in companies that aren't volatile than. The underlying stock though. Personally... i think its best to buy options when the stock's volatility is low and you think the stock has potential to move big.in the coming days, weeks, year etc. This means that historically the stock's price doesnt move much and thus the market doesn't expect it to in the future. A good example is FB last year during its 2nd quarter earnings release.

Implied volatility is the meat of the option price as it makes up the premium. This is one of the reasons why there's such a high return (and risk) when making money off index ETF options like the QQQ, SPY and DJI; low volatiltiy.

When vol is high and the movement isn't enough, the options price gets sucked out of it. Thats why training during earnings releases can get you got...especially if its a company like Tesla, Keurig GMCR or 3D Sysytems. If anything with those types of companies if youre a serious trader with a lot of margin you can break the bank by doing short strangles, short straddles...or just outright shorting puts and calls. This is done when you think the price of the underlying wont move too much during a release or during any sort of time period. In effect, youre shorting the volatility of the option.

This is mainly me thinking out loud. I'll elaborate when i aint at work lol

 

[Ohene]

JD

More Chinese garbage that could have long-term potential, but will probably pop like every other hot stock that reverses course a week or so later.

Let's recap some recent IPOs...

CRCM from $29.25 to $11.51... low of $9.66
VRNS from $56.80 to $24.96... low of $19.69
COUP from $33.00 to $21.43... low of $15.56
GRUB from $40.80 to $30.95... low of $29.86
CSLT from $41.95 to $18.93... low of $10.05
WB from $24.48 to $18.38... low of $18.26

The short opportunities on these trendy stocks



CRCM now at 2 P/B
VRNS 5.74
COUP 6.06
GRUB 3.06
CSLT 6.9
WB 15.43

More realistically valued now, but still some overpriced. Ridiculously valued before. Weibo will probably come crashing down in a few months like Twitter. Maybe into the single digits. If you value it like Twitter, it should be at $8.25 today, not in the 18s.

lol breh...I swear on everything i was gonna get in on CSLT when it was around 14 smh. That shyt is MOVING. I dont know when itll ever stop though. But instead ill wait til it his a certain point and buy puts. Manipulation all over it

 

[无名的]

lol breh...I swear on everything i was gonna get in on CSLT when it was around 14 smh. That shyt is MOVING. I dont know when itll ever stop though. But instead ill wait til it his a certain point and buy puts. Manipulation all over it

I thought about it at 10, but with the market the way it is and that garbage ass company doing 20 million in revenue, valued over a billion, I'd rather sit on the sidelines and miss money, than jump in and lose money when it still looks overvalued at 10. Trading at 80 times price to sales.



Looks like on the TA side of it. . . some shooting stars forming. Might start dumping again soon.

 

[Ohene]

I thought about it at 10, but with the market the way it is and that garbage ass company doing 20 million in revenue, valued over a billion, I'd rather sit on the sidelines and miss money, than jump in and lose money when it still looks overvalued at 10. Trading at 80 times price to sales.



Looks like on the TA side of it. . . some shooting stars forming. Might start dumping again soon.

inevitable. just a matter of when.

 

[GoogleMe]

question for you breh
How do you determine what stocks you buy straight up and ones you buy options for?

Well, like anything in trading/investing, there's no "one size, one metric." Aside from strategy, I use several tools to locate potential trades/investments. One is finviz.com which offers a free screener. Also, the hi/lo ticker is a feature included in most trading platforms that display stocks making new highs and new lows during the trading day. If investing for the long-term, options are good to use with stock positions to manage risk and supplement income. Active, short-term traders should almost always use options instead of stock to enhance returns and define risk IF the options are liquid.

 

[Ohene]

@GoogleMe

I might have to get bullish on Sears. 50 DMA is about to cross the 200...is that a good indicator of anything? The share price is right around that region too. For about the last 3,4 qtrs Sears always goes down after earnings and then starts to rise. I might have to take the plunge . Gonna catuously look at this one. Another good day for the spy though, i'm taking my luck and sitting out tomorrow. Too much of a hot streak

 

[Domingo Halliburton]

Wall Street Finds New Subprime With Brokers Pitching 125% Loans - Yahoo Finance

haha, when I first interned one of the first things I did was take turn downs from commercial loan departments at banks and broker it out to these a$$holes and about 4 or 5 non-bank lenders. I remember the first one I did the guy got $150k and paid about 70k in interest.

 

[GoogleMe]

Well, like anything in trading/investing, there's no "one size, one metric." Aside from strategy, I use several tools to locate potential trades/investments. One is finviz.com which offers a free screener. Also, the hi/lo ticker is a feature included in most trading platforms that display stocks making new highs and new lows during the trading day. If investing for the long-term, options are good to use with stock positions to manage risk and supplement income. Active, short-term traders should almost always use options instead of stock to enhance returns and define risk IF the options are liquid.

I will add, I think it is not worth trading options on equities that are less than $15 unless it is a biotech / big binary event.

 

[MrFantastic]

Well, like anything in trading/investing, there's no "one size, one metric." Aside from strategy, I use several tools to locate potential trades/investments. One is finviz.com which offers a free screener. Also, the hi/lo ticker is a feature included in most trading platforms that display stocks making new highs and new lows during the trading day. If investing for the long-term, options are good to use with stock positions to manage risk and supplement income. Active, short-term traders should almost always use options instead of stock to enhance returns and define risk IF the options are liquid.

Good look on the info....I always wondered how you guys even find deals.

 

[GoogleMe]

@GoogleMe

I might have to get bullish on Sears. 50 DMA is about to cross the 200...is that a good indicator of anything? The share price is right around that region too. For about the last 3,4 qtrs Sears always goes down after earnings and then starts to rise. I might have to take the plunge . Gonna catuously look at this one. Another good day for the spy though, i'm taking my luck and sitting out tomorrow. Too much of a hot streak

A great looking bullish candle today on SHLD breh. Which moving averages are you using? Simple or Exponential?

 

[Ohene]

. Active, short-term traders should almost always use options instead of stock to enhance returns and define risk IF the options are liquid.

Indeed...never buy options when the bid ask spread is too wide. the underlying stock should at least have about 4M in volume to insure that the options liquid. In special cases

A great looking bullish candle today on SHLD breh. Which moving averages are you using? Simple or Exponential?

Simple. Exp crossed weeks ago I think

 

[Donald J Trump]

Well, like anything in trading/investing, there's no "one size, one metric." Aside from strategy, I use several tools to locate potential trades/investments. One is finviz.com which offers a free screener. Also, the hi/lo ticker is a feature included in most trading platforms that display stocks making new highs and new lows during the trading day. If investing for the long-term, options are good to use with stock positions to manage risk and supplement income. Active, short-term traders should almost always use options instead of stock to enhance returns and define risk IF the options are liquid.

next question is how do you go about screening..what are you looking for during your normal day

during a bearing day

during a bullish day

 

[Ohene]

CBS in the money by 66 cents and these calls expire June 21st

 

[Domingo Halliburton]

Aeropostale down 20%. yahoo finance is uncharacteristically ripping them and their CEO.

I don't see how you can be in just about any retail name.

 

[GoogleMe]

CBS in the money by 66 cents and these calls expire June 21st

Very nice. It's trading above the 50 dma now. 100 dma is coming up at 61.43