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.
NUmber of contracts I can buy

@armon75226 Be sure to understand that your call price will NOT go up dollar for dollar as AMZN stock is rising. That is unless your calls are deep in the money and have delta near 100%.

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Newbies looking for help with first puts

@Somadis Welcome to the options world! I think the trade @baerrus suggested was a good one.

Here is my 2cents. Options are a great tool for a leverage bet on direction. But you have to be careful. Guessing direction is very hard and with options you have to factor in decay. You might be correct on direction but because the option decays in value over time you still could loss money.

Personally I like place options trades where being right on direction is not required. As someone that is new to the options world I would suggest really spending some time with TastyTrade. The videos are very helpful in learning about non-directional probability based trading.

For example did you know during any 30-day period from 1993 through 2014 the SPY (the Exchange Traded Funds, or ETFs, tracking the S&P 500) closed down 5% or more 11% of the time (link to my blog post). In other words if you are able to put on an options trade that makes money if the market does anything other than drop 5% in a 30 day period you would have a winning trade 89% of the time. With good trade management you can recover the 11% of the time you lose money and still be very profitable.

A trade I like to place over and over again is selling a put credit spread in the SPY. I look for 2 dollars-wide SPY spreads that are at least 5% from the current stock price. I do not consider any spreads that expire more than 45 days out, and I make sure the credit received is at least $0.18. Typically you can choose from about 10 credit spreads with different expirations, strikes, and credits received (less so in our current market). With this trade if the SPY drops 5% in a 45 day I loss money. If the SPY drops less than 5%, stays flat, or goes up in value I get to keep the credit. On average I am able to bring in around $0.23 (or 23 dollars) per $177 ($200-$23) risked. Not a bad return.

I just wanted to throw that out there an an alternative to directional trading. Regardless you should always trade small. Options can make your account to go to zero very quickly. With directional trading I suggest never risking more than 5% of your capital. With probability based trading sometimes risking up to 15% is ok (but 5 - 10% is a better size).

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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.
Nordstrom whammy

I like your idea. Though JWN has sat in high thirties last year and seems like that can happen this year as well. Unless retail sentiment improves somehow.

PS: I hate it when exchanges have to adjust option strike prices, like in JWN case. Those odd strike options will become very illiquid later.

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VFC is a keeper

VFC a dividend aristocrat that has announced earnings and is down ~ 5%. This may be a good time to go long. VFC is a holding company that owns many iconic clothing brands and the business is very stable. It pays +3% dividend at current prices and has a large stock buyback going. I am long and increased my position 30% this morning. For me this stock qualifies for a core position. I am not making comments on the immediate technical direction. It might just go down some more. This is for the long term capital gains and dividend income.

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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.
What are Hedging Strategies?

Hedging is the practice of holding securities or investment positions in order to reduce damage that might be a result in a volatile market. There are many hedging strategies that an investor can use in order to reduce risk in volatile times. These Securities that offer hedge are securities that move against the current of the market trends. With that here are the most common hedging strategies that an investor may use.

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What is the best hedging strategy to play an Earnings Report

@jonescd Search this forum for the word "earnings". Actually we should have a tag for that... Good idea. Perhaps we should put together a thread that collects the most useful earnings trades anyone?

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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.
Unprecedented Bet On A Surge In Bond Volatility

@mick97 Spam is not allowed on this forum.

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VIX Manupulation

@OPRAnut said:

VIX research paper

This was an interesting read. Thanks for the share!

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Discussions on trading in commodities options, index options and options on futures. Discover new opportunities for profits.
Oil chart is looking ugly

Fifteen independent producers with operations focused on the United States reported a combined net loss of $3.7 billion in the first three months of 2017

income for Fifteen independent oil and gas producers with operations in United States

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Commodity Tips and Trends

Just like with the stock market, trading volumes in oil were also lower. Only about 183,000 WTI contracts and 103,000 Brent futures contracts changed hands, almost 70 percent lower than the trading volume on Thursday. Europe focused on the on-going geopolitical tension given that the financial markets were shut across the region for Easter holiday.


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Frequently asked questions on how to use General help. Announcements regarding our community
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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2016 and 2017 Schedule Calendar, Stock Market Holidays

@OPRAnut Thanks for posting! I know e can rely on you to keep us updated on all regulatory stuff. Happy holidays to you !

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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
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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More From Backstage WallStreet - Mutual Funds

Still Institutional investors are better informed then crowd. Recent example is the last job report - institutional were buying one day before the job report while the crowd was selling


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