Equity Options

[Cali Coug]

Originally Posted by FMCoug

Which should I regret more?

The GOOG calls I'm in and up 280% or the QQQQ credit spread I'm in that was a 55/45 risk/reward (i.e. for every $55 I put at risk, I get $45)?

Imagine a scenario where you took 1 million monkeys and asked them to throw a dart at the stocks listed in the Wall Street Journal. At the end of the process, some darts would have hit good stocks, and some bad. Repeat that process 50 times. At the end you would have some monkeys who hit good stocks 50 times (the smart monkeys) and some who hit bad stocks all 50 times (the dumb monkeys).

I think this is pretty close to how it works for publicly traded securities (unless you have insider information, which would be illegal to use, or if you have so much cache in the market that the market tends to follow what you do, thereby ratifying every decision you make, like Buffet).

[NorCal Cat]

Originally Posted by FMCoug

Although I learned on CG that it's "impossible" to beat the market so I guess it's all an exercise in futility.

Right, what are we thinking?

[NorCal Cat]

Originally Posted by Indy Coug

In the long run, it is impossible to beat the market. Anyone can make out like bandits in the short run.

Nonsense. It is not impossible.

[venomous viper]

best options I've been in over and over again are,,,,,real estate options and hold for long term!!!!

[Parrot Head]

Which brokerage do you use? I've been looking at Zecco lately, but haven't yet committed anything to an account there. Has anyone gone through them?

[FMCoug]

Originally Posted by Parrot Head

Which brokerage do you use? I've been looking at Zecco lately, but haven't yet committed anything to an account there. Has anyone gone through them?

Never heard of them. For small accounts, I think OptionsExpress is good. For serious traders, it's hard to beat TradeStation. Lots of people like ThinkOrSwim as well. The latter 2 are both direct access brokers. If you don't know what that is, you don't need it.

[BYU71]

OK, maybe a couple of you are great option traders. So let's have a little game here. For the next two months let us know what option trades you make, in advance. I will keep my money in cash.

I will bet a really nice dinner for you and your significant other that my cash beats your option trades. If I win you don't have to give me a thing, that is how sure I am you lose.

[NorCal Cat]

Originally Posted by BYU71

OK, maybe a couple of you are great option traders. So let's have a little game here. For the next two months let us know what option trades you make, in advance. I will keep my money in cash.

I will bet a really nice dinner for you and your significant other that my cash beats your option trades. If I win you don't have to give me a thing, that is how sure I am you lose.

OK, I just sold my RIMM call options for 50% gain in ten days.

[FMCoug]

Originally Posted by BYU71

OK, maybe a couple of you are great option traders. So let's have a little game here. For the next two months let us know what option trades you make, in advance. I will keep my money in cash.

I will bet a really nice dinner for you and your significant other that my cash beats your option trades. If I win you don't have to give me a thing, that is how sure I am you lose.

You're on. Currently open positions:

AAPL Jan 200 Call. Bought at 10.45
AAPL Jan 190 Call. Bought at 13.30
GOOG Jan 650 Call. Bought at 53.00

I have about a half a dozen credit spreads as well. Are you interested in those or just long/short positions as above.

[hammer]

Originally Posted by FMCoug

You're on. Currently open positions:

AAPL Jan 200 Call. Bought at 10.45
AAPL Jan 190 Call. Bought at 13.30
GOOG Jan 650 Call. Bought at 53.00

I have about a half a dozen credit spreads as well. Are you interested in those or just long/short positions as above.

Are those Jan '09 or '10 calls? I'm assuming '09, but either way, nice work.