Main category of the Options Trading Forum. Learn how to trade options. Get options trading tips. Share with the community and learn how to invest in options profitably.
$QCOM selling at-the-money calls the day before earnings had 83% winning occurrences, for an average gain of +52.2%

@itradevol From what you have posted it follows that selling at-the-money calls into earnings would be a losing strategy. The quote below indicates that stock price goes up in 83% of cases historically. How is selling call options can be profitable into rising stock prices? Please explain?

QCOM has seen its stock price go up in the 2 days following earnings for 10 of the last 12 quarters (83%), for an average gain of +2.6%.

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price or IV at Open

@jalea148 Just an idea: use pre-market session to establish stock bid/ask. What problem are you trying to solve though? It is rather difficult to know where derivatives will trade (or whether options are undervalued or overvalued) if you do not know where the underlying stock is trading.

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Discussions on option strategies designed to produce income. Covered calls, selling puts and more advanced options income strategies. Learn options trading with a community of fellow traders.
POT: A Nice Income Opportunity Is Developing

Hello fellows, i have something different and new engaged in trading binary option and forex trade , Here i have good strategy, unbeatable signal and best software that produces 98% profit payout investing minimum of $5,000 to earn profit payout of $50,000 on or before fourth and fifth working days of the week. Also if you have noticed a ripoff of your investment from your broker or your trader from $7,000 above, kindly message me on my email ( kenlynch507@gmail.com ) i will guide you to success , help you trade and make good profit in trading binary option and get your money back refund too if you don't know how to go for it.

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Rolling Short Puts in GBX

Nov 12 GBX has declined to $33.37. Today, only 10 days later, I sold my long Nov 35 puts that I bought as a cheap protection anticipating GBX stock and options volatility to continue . This morning Connors RSI for GBX declined to 10 indicating a severely oversold condition prompting me to sell the puts for $2.15. Here is the trade log brought up to date. The balance of my trade has turned positive. Though it means little as long as the short position remains open.

DateTradePosition AfterTotal Profit (Cost) /share 06/16/2015SLD GBX Sep15 50 Put @ $3.30Short Puts3.30 09/14/2015BOT GBX Sep15 50 Put @ $10.80---7.50 09/14/2015SLD GBX Oct15 40 Put @ $3.10Short Puts-4.40 09/15/2015SLD GBX Dec15 40 Put @ $1.63Short Puts-3.77 10/13/2015BOT GBX Oct15 40 Put @ $0.75Short Dec Puts-4.52 10/16/2015SLD GBX Dec15 35 Put @ $2.65Short Puts-1.87 11/02/2015BOT GBX Nov15 35 Put @ $0.40Short Calendar-2.40* 11/12/2015SLD GBX Nov15 35 Put @ $2.15Short Puts0.45*

'*' - indicates per share number is adjusted to match basis lot number ( the lot number that trade was opened)

Current option prices are captured in this snapshot:
GBX options chain prices

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Portfolio protection is crucial to building wealth in the Market. And options are the best method to protect your investments. Learn how to use options to fortify your nest egg against Market downturns, Black Swan events. Defensive options strategies designed to hedge risk.
Option Trading Strategy Results: 30-Dec-16 Weekly Expiration

In share market option trading is good but to earn huge profit from the market trader should trade in mcx market in bullions & take best bullion tips from the market expert.

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Simple Payout question

Greetings, I am new to options trading and would like to answer a 'simple' question about how payouts are calculated. I want to buy a Call Option to hedge a spot trade in FX and am trying to determine how many options I need to buy to cover my exposure.

At the moment I have the following formula for the payout of an option that is in the money at expiry

Payout = (-OP + (EP - SP)) x Lotsize = Profit/Payout

where:

OP - Option Price
EP- underlying price at Expiry
SP - Strike Price of Option

Please let me know if this is correct

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Some traders believe that volatility is the most important factor in option pricing. Discuss all things volatility here. Agree, disagree, debate and learn options valuation, volatility and pricing.
Best High Volatility Stocks For Options Trading

Thanks for posting this forum,such a greatful information given by you.Gold & silver is the best high volatility stocks for option.People are interested for investing in bullions can take help from best mcx gold tips provider so that through their tips and calls they can earn huge profit

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2017 Market "Walked On Water"

Check out this chart from Morgan Stanley. Previous year with such a small intrayear drawdown was 1995.

Market drowdowns chart

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Reviews and questions on option tools, software and options brokers.
Free Gold and Silver Trading On BATS

Gold & silver are the precious metals of the mcx market.Those who are trade in gold & silver who earn huge profit .Its very profitable to trade in mcx market.Mostly traders trade in gold & silver & getting huge profit from the market.New trader get gold silver tips from the market expert to earn huge profit from the market.

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App for managing my option strategies

@glancashire Do you mind posting more information on what your app does, perhaps pictures? Bare links are considered spam here.

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Discussions on trading in commodities options, index options and options on futures. Discover new opportunities for profits.
How Commodity Trading Accommodates the Economy?

Commodity trading accommodates the economy because its very profitable & helpful for the growth of economy.Gold & silver are the precious metal of commodity market and its profitable to trade.To know about mcx bullion market take bullion market tips from the market expert.

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Oil chart is looking ugly

I am currently long Chesapeak and Sanchez Energy stocks. Though getting less bullish slowly. The chart above was posted 6mo ago. At $60/bbl some shale companies can breakeven and even squeeze out a little bit of profit.

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Frequently asked questions on how to use OptionsForum.net. General help. Announcements regarding our community
FINRA Warns On Exchange-Traded Notes

Amen XIV. Look at that chart!

XIV Collupse chart

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FOMC 2017 Meeting Schedule

Happy trading to everyone

The FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. Links to policy statements and minutes are in the calendars below. The minutes of regularly scheduled meetings are released three weeks after the date of the policy decision. Committee membership changes at the first regularly scheduled meeting of the year.

FOMC 2017 Meeting Schedule

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Tired or in the mood for a lighter fare? Anything and (almost) everything can be discussed here except Stock options and Mr. Market
Honest opinion about annualized returns with defined risk strategies

@thenewguy Good questions.....

It really comes down to your strategy, and being realistic. My core strategy is I sell put credit spreads on the SPY over and over again. I don't adjust. I risk around 10% of my capital in any one trade. Some years I return 90% and some years I have a loss. I have found over 7 years a 30% CAGR is about right.

https://options.cafe/blog/baseline-strategy-for-trading-spy-put-credit-spreads

Many pro options traders that I know aim for around 20 - 30% a year return. I think if your shooting for returns beyond that you most likely will not have long term success. But once again it all comes down to your strategy.

Here is what my returns look like starting with 30k from 2009 - 2016.

returns.png

One thing I like to do is have a pot of "FU" money. I use this money to try to make more risky trades (such as trading futures directionally). My goal with the "FU" money is to offset some losses when there is a drawdown. There is also times when I totally blow up my "FU" money account. I notice with this "FU" money I either return over 10x or I loss everything. More or less there is a chance to get much better returns by using "FU" money as a hedge.

But with that said I recommend nailing your core baseline strategy before getting too fancy.

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Interview with Jim Chanos

It is notable that international risks are on people's mind. Meanwhile we have rate hikes in full swing at the time that inflation - allegedly the main indicator prescribing those rate increases - is moving in the wrong direction.

Inflation rate chart

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