Boiler Room: The Official Stock Market Discussion

[Domingo Halliburton]

I just bought some GLW stock,something to get my feet wet

How do you guy decide when to sell? I was always the guy who on Madden who would never kick field goals even when it was 4th and 20

But that didn't work out to well for me last time I participated in the stock market. When do you decide there won't be a comeback? is it a gut feeling? days or weeks worth of losses?significant news that looks bad?or is it basically all of the above?

This might be bad for somebody like me who had a craps addiction. I never did know when to walk away

There's no such thing as a bad profit.

 

[Domingo Halliburton]

Fade twitter. Still a piece of shyt.

Jim Cramer just sounded real bullish on CNBC 2 seconds ago...definitely a short.

 

[Benefited]

There's no such thing as a bad profit.

I'm speaking more to when there is no profit and your stocks start to lose value. Maybe I used the wrong terminology.

 

[Domingo Halliburton]

I'm speaking more to when there is no profit and your stocks start to lose value. Maybe I used the wrong terminology.

I get what you're saying. It's hard sometime. You can average down if you want but that has never worked for me. I mean if we could time the market we would all be billionaires managing a hedge fund.


You can mitigate some of the risk by diverifying. Dump the losers, keep the winners. Other than that, i cant say i have a certain formula for when to sell. I've literally held stock for a day, and ive held stocks for years.

 

[Futuristic Eskimo]

Jim Cramer just sounded real bullish on CNBC 2 seconds ago...definitely a short.

Nov 17 $19 puts look reasonably priced. i can see this thing fading back into the $18 range by next Friday.

Edit: Should always look at open interest before I get excited

 

[N.J.stan]

SHOP

BABA

TX

QD

 

[Perfectson]

scoping TWTR options weekly 21.5 @ .!2

in AAPL options @ .20 162.5 call

 

[Perfectson]

buyingTSLA 325c Weekly Calls @ .90 playing the gap

 

[Perfectson]

scoping TWTR options weekly 21.5 @ .!2

in AAPL options @ .20 162.5 call

TWTR options weekly 21.5 now at .21 (80% return)

AAPl options 162.5 call @ .40 (100% return)

 

[Perfectson]

I just bought some GLW stock,something to get my feet wet

How do you guy decide when to sell? I was always the guy who on Madden who would never kick field goals even when it was 4th and 20

But that didn't work out to well for me last time I participated in the stock market. When do you decide there won't be a comeback? is it a gut feeling? days or weeks worth of losses?significant news that looks bad?or is it basically all of the above?

This might be bad for somebody like me who had a craps addiction. I never did know when to walk away

i do mostly options, so i have a hard an fast rule of 50% for lottos and 30% for everything else....if i see something that I believe is popping i won't set a stop and just eye it.
I use trailing stops, which will get you out at market prices after it hits the stops, which can fukk you out o fprofit sometimes but can save you from massive losses and bad judgement other times.

You can also use charts and try to understand entry and exit points.

 

[N.J.stan]

TWTR options weekly 21.5 now at .21 (80% return)

AAPl options 162.5 call @ .40 (100% return)

Can you give a quick breakdown on Options and how you decide what to buy? I've never fully understood how to trade them, but it seems like both profits and risk are multiplied compared to just trading stock.

 

[Poh SIti Dawn]

scoping TWTR options weekly 21.5 @ .!2

in AAPL options @ .20 162.5 call

That's what I'm saying. Up here doubting twitter I shoulda bought yesterday at 18

 

[Perfectson]

Can you give a quick breakdown on Options and how you decide what to buy? I've never fully understood how to trade them, but it seems like both profits and risk are multiplied compared to just trading stock.

To be honest, I have lost a bunch in options and won a bunch. So yeah it can be magnified and they can also be less riskier than stocks.

To be really good you need to study and understand what your risk tolerance is, because you can do all types of strategies with options.

This post isn't going to help you make immediate profits, because there's no quick wins 100% cheat code in the market.

So here's some scenarios that show how to use options:

1) AAPL sells out of all I phone Xs, you think there's going to be short term jump on this news (you read about it 12pm) price is at 158. At 12:02 you look at AAPL weekly option for 160 and it's going for .50. You think the news will lift the stock to 163. So you buy the 160 options for .50.

If it hits 163, you will make 3 dollars (163 - 160) plus you will pay.50 cent for the premium on the 160 ($3 -.50) - so you make $2.50 if you wait until expiry.

So that's one way you win with options, if you think something is goign to move in a period of time, buy the option and eat

2) same above can be used for puts. people eat on shorting stocks and if you know a stock is going to drop play the put. In fact, when Equifax news came out lot of people bought puts while EFX was dorpping, it's usually easy money when people are in a panic.

3. There are plays that can be neautral, like buy straddle (buying a put and buying a call) and selling a strangle against the straddle. You at that point play the volatility (vega) on the options instead of playing delta (delta is the underlying stock movement).

#3 is way more technical and advanced but shows you can eek out 5%-10% profits on certain strategies and be relatively risk averse.

 

[88m3]

edit

 

[Perfectson]

To be honest, I have lost a bunch in options and won a bunch. So yeah it can be magnified and they can also be less riskier than stocks.

To be really good you need to study and understand what your risk tolerance is, because you can do all types of strategies with options.

This post isn't going to help you make immediate profits, because there's no quick wins 100% cheat code in the market.

So here's some scenarios that show how to use options:

1) AAPL sells out of all I phone Xs, you think there's going to be short term jump on this news (you read about it 12pm) price is at 158. At 12:02 you look at AAPL weekly option for 160 and it's going for .50. You think the news will lift the stock to 163. So you buy the 160 options for .50.

If it hits 163, you will make 3 dollars (163 - 160) plus you will pay.50 cent for the premium on the 160 ($3 -.50) - so you make $2.50 if you wait until expiry.

So that's one way you win with options, if you think something is goign to move in a period of time, buy the option and eat

2) same above can be used for puts. people eat on shorting stocks and if you know a stock is going to drop play the put. In fact, when Equifax news came out lot of people bought puts while EFX was dorpping, it's usually easy money when people are in a panic.

3. There are plays that can be neautral, like buy straddle (buying a put and buying a call) and selling a strangle against the straddle. You at that point play the volatility (vega) on the options instead of playing delta (delta is the underlying stock movement).

#3 is way more technical and advanced but shows you can eek out 5%-10% profits on certain strategies and be relatively risk averse.

@N.J.stan i forgot to mention in #1 the difference between options and stocks

a) if the stock goes from 158 to 163 , you make $5 (163-153) or a % return of 6.5%

b) if the the stock goes from 158 to 163 and you bought options in my example you will make $250 on $50 or 500% (since options are bought in lots of 100, i.e 1 options = 100 stocks if you buy something for .50 it's really $50)