Author Topic: Stocks  (Read 172503 times)

Online ludmila

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Re: Stocks
« Reply #2610 on: October 04, 2017, 11:58:21 PM »
You have a good trade here with ALK, it is a buy here ,if it takes 78 next target is 83, ill use 70.70 as a stop, ill buy the $75 options.
It made it to my target, high today was $82.50, hit resistance. I am a short term trader, i'll take the profit and move to the next trade. With EFX I caught the exact bottom at 90 and made a nice profit, it moved much higher , actually 22 points in a couple of weeks since then.
I was the Best,still the Best, and will always be the Best.
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Online ludmila

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Re: Stocks
« Reply #2611 on: October 05, 2017, 12:01:32 AM »
90 support held, EFX up $15 in 10 days .
Closed at $112 today, from the $90 support.

I was the Best,still the Best, and will always be the Best.
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Offline Mordyk

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Re: Stocks
« Reply #2612 on: October 08, 2017, 02:00:11 PM »
I had a $957.50 AMZN call that i sold before yom tov since it was expiring friday and i would be able to trade thu friday
...

Offline Boruch999

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Re: Stocks
« Reply #2613 on: October 08, 2017, 02:09:44 PM »
I had a $957.50 AMZN call that i sold before yom tov since it was expiring friday and i would be able to trade thu friday
...

In the long run we don't lose out for keeping Shabbos and Yomtov.

Offline Mordyk

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Re: Stocks
« Reply #2614 on: October 08, 2017, 02:48:16 PM »
In the long run we don't lose out for keeping Shabbos and Yomtov.
i agree. Im sure hashem has plans

Offline Boruch999

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Re: Stocks
« Reply #2615 on: October 08, 2017, 03:22:44 PM »
I had a $957.50 AMZN call that i sold before yom tov since it was expiring friday and i would be able to trade thu friday
...

Let's use this

to explore this
That is what I wanted to point out - if you want leverage, a more effective method may be to buy on margin, and if you want downside protection there are other ways to obtain it. As you mention, stop loss is not a sure thing, but pairing a put option with your stock buy is a sure thing. Buying a stock on margin + put option might not be more cost effective than buying a call outright (though it can be, e.g. if you're taking a contrarian position), but it can have a better return profile for the cost.

My purpose in commenting is to stimulate some thought and discussion for the self-proclaimed investment novices.

I personally share your view in that I only buy call options as part of a larger strategy, and not merely to take a bullish position on a stock.

@Mordyk why did you by a call?

If I had to guess, buying the call was far less margin than buying stock on margin, and the downside protection is built in and easy.

I actually can't see how leverage (in a long position) can ever be as easily and cheaply obtained as with a Call.

Offline hachover

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Re: Stocks
« Reply #2616 on: October 08, 2017, 03:32:07 PM »
Let's use this

to explore this
@Mordyk why did you by a call?

If I had to guess, buying the call was far less margin than buying stock on margin, and the downside protection is built in and easy.

I actually can't see how leverage (in a long position) can ever be as easily and cheaply obtained as with a Call.

My magin interest rate is 5% and tax deductible. The dollar amount is tiny for quick plays and far far less than commissions on option contracts
I'm an optimist; but only because life isn't going to give me any other good choices.

Offline Boruch999

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Re: Stocks
« Reply #2617 on: October 08, 2017, 05:10:33 PM »
My magin interest rate is 5% and tax deductible. The dollar amount is tiny for quick plays and far far less than commissions on option contracts

I believe my margin rate is 2.66%. 

I think we are talking about different things. I'm talking about margin requirement.  You are talking about margin loan costs.  To buy 100 shares of AMZN, Mordyk would have needed 50% of the cost of the shares of excess liquidity under Reg T rules, or about $47,500.  To buy the Call all he needed was the cost of the call, probably a few thousand dollars depending on when he bought it.

Online ludmila

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Re: Stocks
« Reply #2618 on: October 08, 2017, 05:34:03 PM »
I believe my margin rate is 2.66%. 

I think we are talking about different things. I'm talking about margin requirement.  You are talking about margin loan costs.  To buy 100 shares of AMZN, Mordyk would have needed 50% of the cost of the shares of excess liquidity under Reg T rules, or about $47,500.  To buy the Call all he needed was the cost of the call, probably a few thousand dollars depending on when he bought it.
Correct, also in options you have to be right in your timing, to work in your favor before expiration.
I was the Best,still the Best, and will always be the Best.
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Offline Boruch999

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Re: Stocks
« Reply #2619 on: October 08, 2017, 05:45:14 PM »
Correct, also in options you have to be right in your timing, to work in your favor before expiration.
True, though you can often roll.

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Re: Stocks
« Reply #2620 on: October 08, 2017, 10:11:36 PM »
Bought futures 1 contract each, Platinum at $915.20,Silver at $16.82,Gold @1277.1 and Palladium @925.

« Last Edit: October 08, 2017, 10:16:49 PM by ludmila »
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Offline Mordyk

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Re: Stocks
« Reply #2621 on: October 08, 2017, 10:57:08 PM »
Let's use this

to explore this
@Mordyk why did you by a call?

If I had to guess, buying the call was far less margin than buying stock on margin, and the downside protection is built in and easy.

I actually can't see how leverage (in a long position) can ever be as easily and cheaply obtained as with a Call.
I actually buy simple options many times just based on trends or minor details. I try not to be too greedy and just catch a small profit

Offline Boruch999

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Re: Stocks
« Reply #2622 on: October 08, 2017, 11:31:30 PM »
Bought futures 1 contract each, Platinum at $915.20,Silver at $16.82,Gold @1277.1 and Palladium @925.
expecting a market correction?

Offline ChaimMoskowitz

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Re: Stocks
« Reply #2623 on: October 10, 2017, 02:04:04 PM »
For forex XAU/USD what is the margin requirement? Is it 100%?
Bump!
I just found a new supply of forks!

Online ludmila

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Re: Stocks
« Reply #2624 on: October 10, 2017, 02:17:55 PM »
Bump!
I think for forex, different brokers use different margin req., I trade futures contracts for pm's.
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.