Options: Low Cost Investing

[New-born baby]

NB, I'm looking at it for the first time, but Trade-Ideas (recently added to my ScottradeELITE as a freebie) has alerts for triangles and reverse triangles (broadening tops or bottoms) that can be filtered by adjusting the number of hours of trading the program reviews. Is that something like what you're looking for? Anyone have any experience with Trade-Ideas?

Sounds right. I tried Karel's idea, but I was looking for possible shorts, and that requires a stock above $60 (IMHO). These big dollar stocks offer big dollar options, and when they sink like the Titanic, then the moves are nice. I'll see about Scottrade ELITE.

[New-born baby]

Goofed. Again.

NBB,

OK, I'm game. You wrote:"WFMI is (MIMO's?) Pick of the Year"

Where did this come from?. LOL

Tim

I goofed again! Here's a cut and paste of the original post.
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WFMI (Whole Foods) I will stay with a local company long ... they will be going international and opening a clothing line - Great Idea Doug!

__________________
The Photon

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[spikefader]

..hoped that this thread will be a vehicle to expand your universe of investing knowledge...

And no doubt it WILL be if you're posting NB!

To add to the 'knowledge base' here's a review of GOOG, and an example of low cost play that produces an impressive 2 day return. With 2 weeks until expiry you're not paying much of a premium for time, yet the volume and interest and volatility is there to leverage being on the right side of the trade. You have very limited downside, i.e. the cost of the call, and nice % reward if you're correct with your timing.

[New-born baby]

Excellent!

Spike,
Love your options plays with GooG! GooG is a money-maker. PERIOD. Thanks for posting your play. Please continue to do so.

[spikefader]

Spike,
Love your options plays with GooG! GooG is a money-maker. PERIOD. Thanks for posting your play. Please continue to do so.

Yep, GOOG sure is. It's truly an amazing stock to trade. And it's taught many many stubborn shorters a lesson, and will continue to do so on it's march to Lord knows how high. And if there was any whisper on the daily chart for GOOG it's that runaway gap in October. Those things should not be underestimated.

Because of the impressive price action I'll post the update intraday.

[spikefader]

heh, I don't know if anyone else from the forum is actually watching GOOG, but those calls just spiked to 8.70; some panic-stricken buyer using a market order (there's a lesson there people). GOOG intraday stock action something worth watching if you're not already.

[skiracer]

Spike,
A most impressive call on those options way back when you bought this current round. I was actually looking for GOOG to pullback farther at that moment in time. But boy what a stock. Great call an I should have bought them with you at that time. I need an uppercut on this one. I think this stock is going to $500. You are the Spikemiester. I love to see big gains whenever someone beats these markets. Great call. I know you will protect and keep those gains.

[dmk112]

heh, I don't know if anyone else from the forum is actually watching GOOG, but those calls just spiked to 8.70; some panic-stricken buyer using a market order (there's a lesson there people). GOOG intraday stock action something worth watching if you're not already.

Spike, I need to learn options from you. Do you have some type of system on selecting these? It would be cool if you can post something.

So that's why you're not trading the YM's - you're busy making dough with GOOG! ahha

[spikefader]

Spike, I need to learn options from you. Do you have some type of system on selecting these? It would be cool if you can post something.

So that's why you're not trading the YM's - you're busy making dough with GOOG! ahha

lol well I have been watching the YM too, waiting for the swing long entry and it hasn't come yet surprizingly. That 'c' long was the play, and I passed on that. But yep, been watching GOOG and doing some research in the meantime.

But sure thing dmk. I did post the options intraday chart and TA basis (?) on the day I started buying them over in my thread, I'll look later, but it's all the same system/methodology stuff that I've posted before. The trick with options, like every trade, is timing....buy into weakness when no-one wants them and sell into strength when everybody wants them. That's an edge right there. But you've gotta be right about the direction or the premium drops pretty quick.

That's the good thing about out of the money options that limit your downside risk. If you're really wrong the most you'll get hit is the cost of the options you buy. And yet if you're right you might get rewarded like GOOG is rewarding today. But get this straight, options are probably the hardest vehicle you'll trade and will bite you if you aren't very very careful. It's one thing seeing this GOOG event and seeing the potential for making money, and it's an entirely different thing to actually do it. Comes down to discipline and risk management, and picking stocks that won't bite you, i.e. high volume stocks that attract more interest and volume in the options. GOOG is one of them.

I'm actually just now reading some elitetrader chat about marketsurfer, who runs a new hedge fund and is/was short GOOG (haven't caught up with the converstation yet to see if he's closed it yet) from 2 position average of 436.50 with 15% of the entire fund. He said he has one add left before he'll then let the position stop out. I'm amazed and it's sad that anyone would do that with people's money; shorting such a strong stock like GOOG when it's breaking out. Just madness. This is why tight stops are good and adding to a loser can hurt. The quicker people get that into their heads, the faster they'll be successful at this game. Anyway, back to reading the GOOG story of the hedge fund that blew up lol

[IIC]

Now didn't that BMHC work out nicely?
So, in a bearish market, if we could have all the symmetrical triangles the MM Forumites could find posted here, we'd have a great watch list for put buying. And all the descending triangles would also be great options plays.
That's my problem: finding the triangles.

IIC (or others):
Do you have a formula to find the triangles?

I must be a Square...I don't look for Triangles...IIC

[IIC]

Does anyone know where I can get historical prices on options...I know where to get them at a price...But is there anything free out there before I go spend 100 bux a month???...TIA...IIC

[Adam]

Spike you in on any of the QSII calls?

[dmk112]

<IIC (or others):
Do you have a formula to find the triangles?>

I don't think there is a formula (atleast for good ones). Basically, the formula is your eyes. lol

Here's one that's coming back to the triangle : LCRD

[New-born baby]

DMK's Triangle

<IIC (or others):
Do you have a formula to find the triangles?>

I don't think there is a formula (atleast for good ones). Basically, the formula is your eyes. lol

Here's one that's coming back to the triangle : LCRD

Nice post. Why don't you do this every time you find a triangle?
Here's LCRD, and there's room here to make $2 per.

http://img474.imageshack.us/img474/6878/chart18te.gif

[dmk112]

Nice post. Why don't you do this every time you find a triangle?
Here's LCRD, and there's room here to make $2 per.

http://img474.imageshack.us/img474/6878/chart18te.gif

I will try