I hadn’t done any options trading for a while, but a few months ago, I dusted off my options account, put some money into it, and started trading it. The past few weeks have been particularly good to me, with the account up about 100%, but along the way (particularly the most recent week), I left a ton of money on the table.
There was one particular issue that left an impression on me: a NASDAQ put. Now, most of my options trading (which is brain-dead simple: buying puts on stocks that I think are going to fall and whose expiration is several months out) is focused on individual issues, not indexes. But on October 3, I decided to buy the $4050 put on the NDX. (more…)
I keep a small options account for more speculative, devil-may-care trades. Someone asked me for an update on those positions. I’m going to be lazy (and a bit too T.M.I.) by just showing you my current P/L screen. I’ve only got one dud – Hershey – but I still think it’s going to work out just fine. These are all conservative plays (e.g. several months out, and all in the money).
Last Friday, I decided to ape BDI and buy some “DOOMs” (that is, weekly SDS calls). I paid 15 cents for them. On Monday, the bid rose to 20 cents (where I’ve drawn the dotted red line below), so – – Nervous Nelly that I am – – I sold ‘em for a 33% profit and patted my back for how smart I was. Needless to say………..