Weekend Updates

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    Posted: 20 July 2012 06:27 PM #16

    Mav - 20 July 2012 09:02 PM

    Moved from Intraday for Weekend discussion:

    Nevyn - 20 July 2012 08:07 PM
    lovemyipad - 20 July 2012 08:01 PM

    This is getting old.  I just bought more OCT’12 650s @ 17.00

    Me too.

    Scaling in or more aggressive?

    I’m being more conservative for the moment, but it feels like AAPL could retest 600 or below by Tuesday, particularly if the FUD wave continues.

    The OCT’12 650s were just scaling.  I’m already holding a boatload, so not allowed to buy any more in aggressive quantity unless I sell some first.

    On the other hand, I *also* scaled into some aggressive weekly spreads, and even if it works out, I should never, EVER do that again.  Until next blue moon.

         
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    Posted: 20 July 2012 06:32 PM #17

    lovemyipad - 20 July 2012 09:13 PM

    EDIT: Mercel and JD, I know, I *know*!!!  I went to the dark side!!!  I’m part of the problem now, not the solution!!!  Believe me, I know!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Are you gonna use that Three Strikes rule as an offensive weapon?  Like, a mod trolling the rest of us AFBers? :innocent:

    Oh crap…

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  • Posted: 20 July 2012 06:44 PM #18

    lovemyipad - 20 July 2012 09:13 PM

    EDIT: Mercel and JD, I know, I *know*!!!  I went to the dark side!!!  I’m part of the problem now, not the solution!!!  Believe me, I know!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    According to JD, the problem is all the people buying weekly calls near the money. So you, and I, are not part of that problem wink

    Hey, for what it’s worth, I put a few hundred $ down on the $685 calls. Yeah, odds are I’ll lose that. But it was the “change left under the sofa cushions” after I finished buying my real positions.

    I agree with those who are expecting a good blowout, so what the heck, I put a little down for a big pop if we test $700.

         
  • Posted: 20 July 2012 06:46 PM #19

    Mav - 20 July 2012 08:52 PM

    Tuesday planning will be hella fun this weekend.

    I’m glad my limit orders tripped on today’s drop and I’m now all in. Very unlikely I’ll need to make any decisions before earnings are announced. I just need a seat belt and a sick bag and I’ll make it through fine!

         
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    Posted: 20 July 2012 06:57 PM #20

    lovemyipad - 20 July 2012 09:13 PM
    Mav - 20 July 2012 09:00 PM

    Scaling in or more aggressive?

    I’m being more conservative for the moment, but it feels like AAPL could retest 600 or below by Tuesday, particularly if the FUD wave continues.

    Well, I’ll tell you what I did, but I’m not holding it up as any model of good trading.  In fact, seeing as I allowed emotion (irritation) to play a part, I should hold this up as a model of BAD trading, even if it works out.  See, I wasn’t *entirely* objective in placing these trades…I was kinda flipping the bird to the EOs…as if they care about little ole me! :D

    I bought next week’s weeklies: 645/650 bull spreads @ .70

    Um, that wasn’t the REALLY bad part…I, um, kinda sorta also bought, er, well..quite a few, ah…  weekly 665/670 bull spreads @ .20   smile


    EDIT: Mercel and JD, I know, I *know*!!!  I went to the dark side!!!  I’m part of the problem now, not the solution!!!  Believe me, I know!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    I was more conservative.  I bought a set of 640/660 BCS for $2.39

    Define quite a few?  100?  1000?

         
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    Posted: 20 July 2012 07:09 PM #21

    greedyn00b - 20 July 2012 09:46 PM
    Mav - 20 July 2012 08:52 PM

    Tuesday planning will be hella fun this weekend.

    I’m glad my limit orders tripped on today’s drop and I’m now all in. Very unlikely I’ll need to make any decisions before earnings are announced. I just need a seat belt and a sick bag and I’ll make it through fine!

    Ditto . . . And well said.

         
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    Posted: 20 July 2012 07:13 PM #22

    Nevyn - 20 July 2012 09:57 PM

    (...)
    Define quite a few?  100?  1000?

    Um, yes. :D

         
  • Posted: 20 July 2012 07:57 PM #23

    So I guess tuesday is the big day, Im on pins and needles here. Of course I wouldnt be so nervous if apple was above 630 or so because a drop from that point wouldnt hurt as bad as a drop from 600.

    I have changed my stragity im not sure if its going to work. My stragity is buy and hold. Nearly everytime I try to trade this stock I miss out on an opportunity.

         
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    Posted: 20 July 2012 07:58 PM #24

    This board is so enjoyable that I am finding it hard to sit on the sidelines any longer.  I signed up for options trading today and hope to have it approved shortly after earnings are announced.  I would like to describe what I plan to do and listen to advice from those who really understand this.  I currently own 1000 shares and plan to sell covered calls using monthly options. I don’t want them called away, I just want to sell 10 contracts each month to get a little more income.  My plan is to sell at a strike price 100 more than the price on the day I sell, i.e if I were selling them today, I would sell 10 contracts at around 700.  It just generates about a grand a month, but I am not trying to get rich, just to add a little income to my SS.  I know this is pretty boring stuff to most of you, but it seems pretty adventurous to a buy and hold investor like me.  Any advice before I jump into the pool?

    [ Edited: 20 July 2012 09:19 PM by Bud777 ]      
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    Posted: 20 July 2012 08:10 PM #25

    Bud777 - 20 July 2012 10:58 PM

    This board is so enjoyable that I am finding it hard to sit on the sidelines any longer.  I signed up for options trading today and hope to have it approved shortly after earnings are announced.  I would like to describe what I plan to do and listen to advice from those who really understand this.  I currently own 1000 shares and plan to sell covered calls using monthly options. I don’t want them called away, I just want to sell 10 contracts each month to get a little more income.  My plan is to sell at a strike price 100 more than the price on the day I sell, i.e if I were selling them today, I would sell 10 contracts at around 700.  If just generates about a grand a month, but I am not trying to get rich, just to add a little income to my SS.  I know this is pretty boring stuff to most of you, but it seems pretty adventurous to a buy and hold investor like me.  Any advice before I jump into the pool?

    I regularly sell covered calls. I might recommend that you ladder the strikes of your sales. For example, if Apple closes at 610 on the day you are going into the market, sell three contracts at 690, three at 700 and four at 710.  Or, sell three contracts for next month at 700, three for two months out at 710 and four three months out at 740.  This would keep ten contracts in play at all times but provide some diversity on dates and strikes. Just rolling along.

    As far as picking your strikes, 100 bucks above the price on your buy date is no guarantee that the mighty fruit stock won’t go parabolic (that word again) and reach your strike price before expiration. But you can buy back the contract, even at a loss, and not lose your shares. Another way to pick your strike is to examine where the highest OI may be between 70 and 120 dollars above market. This can serve as a price that has a certain “cushioning” effect as the stock price nears it.

    All in all, picking strikes well out of the money, and using times during a year when Apple tends to lag in price action to pick relatively lower strikes can work well.

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  • Posted: 20 July 2012 08:19 PM #26

    Bud777 - 20 July 2012 10:58 PM

    This board is so enjoyable that I am finding it hard to sit on the sidelines any longer.  I signed up for options trading today and hope to have it approved shortly after earnings are announced.  I would like to describe what I plan to do and listen to advice from those who really understand this.  I currently own 1000 shares and plan to sell covered calls using monthly options. I don’t want them called away, I just want to sell 10 contracts each month to get a little more income.  My plan is to sell at a strike price 100 more than the price on the day I sell, i.e if I were selling them today, I would sell 10 contracts at around 700.  If just generates about a grand a month, but I am not trying to get rich, just to add a little income to my SS.  I know this is pretty boring stuff to most of you, but it seems pretty adventurous to a buy and hold investor like me.  Any advice before I jump into the pool?

    1. Don’t buy weeklies
    2. Read #1 again.

    Seriously, the ONLY time I’ve ever lost trading options is when I get too bullish and own options that expire within 3 months—lesson learned again today.

         
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    Posted: 20 July 2012 08:23 PM #27

    Mercel - 20 July 2012 11:19 PM
    Bud777 - 20 July 2012 10:58 PM

    This board is so enjoyable that I am finding it hard to sit on the sidelines any longer.  I signed up for options trading today and hope to have it approved shortly after earnings are announced.  I would like to describe what I plan to do and listen to advice from those who really understand this.  I currently own 1000 shares and plan to sell covered calls using monthly options. I don’t want them called away, I just want to sell 10 contracts each month to get a little more income.  My plan is to sell at a strike price 100 more than the price on the day I sell, i.e if I were selling them today, I would sell 10 contracts at around 700.  If just generates about a grand a month, but I am not trying to get rich, just to add a little income to my SS.  I know this is pretty boring stuff to most of you, but it seems pretty adventurous to a buy and hold investor like me.  Any advice before I jump into the pool?

    1. Don’t buy weeklies
    2. Read #1 again.

    Seriously, the ONLY time I’ve ever lost trading options is when I get too bullish and own options that expire within 3 months—lesson learned again today.

    Mercel…be philosophical. You needed losses to net against your huge gains of the first five months of the year.

    O.K.  I will shut up….

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    Posted: 20 July 2012 08:40 PM #28

    lovemyipad - 20 July 2012 09:13 PM

    I bought next week’s weeklies: 645/650 bull spreads @ .70

    Um, that wasn’t the REALLY bad part…I, um, kinda sorta also bought, er, well..quite a few, ah…  weekly 665/670 bull spreads @ .20   smile

    Wow!!  My weekly spreads are now more conservative than iPad’s?  I’m gonna go all in first thing on Monday morning then.

         
  • Posted: 20 July 2012 08:40 PM #29

    Red Shirted Ensign - 20 July 2012 11:23 PM

    Mercel…be philosophical. You needed losses to net against your huge gains of the first five months of the year.

    O.K.  I will shut up….

    I did go out and buy Sept. 650s, contradicting my own advice above, but it’s not a big position.  Let’s just say my “tax problem” was solved by the EO today.

         
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    Posted: 20 July 2012 09:22 PM #30

    Red Shirted Ensign - 20 July 2012 11:23 PM
    Mercel - 20 July 2012 11:19 PM
    Bud777 - 20 July 2012 10:58 PM

    This board is so enjoyable that I am finding it hard to sit on the sidelines any longer.  I signed up for options trading today and hope to have it approved shortly after earnings are announced.  I would like to describe what I plan to do and listen to advice from those who really understand this.  I currently own 1000 shares and plan to sell covered calls using monthly options. I don’t want them called away, I just want to sell 10 contracts each month to get a little more income.  My plan is to sell at a strike price 100 more than the price on the day I sell, i.e if I were selling them today, I would sell 10 contracts at around 700.  If just generates about a grand a month, but I am not trying to get rich, just to add a little income to my SS.  I know this is pretty boring stuff to most of you, but it seems pretty adventurous to a buy and hold investor like me.  Any advice before I jump into the pool?

    1. Don’t buy weeklies
    2. Read #1 again.

    Seriously, the ONLY time I’ve ever lost trading options is when I get too bullish and own options that expire within 3 months—lesson learned again today.

    Mercel…be philosophical. You needed losses to net against your huge gains of the first five months of the year.

    O.K.  I will shut up….

    LOL

    Mercel

    You taught me that I need to get LEAPS.  I will be selling my stock either next week or close to dividend release and buying some nice juicy Jan14s right when aapl falls to about $540 come Sept when no iPHone appears. :-D