stock options and craps similarity

For those who play the stock options market as well, this may mean something. I play the options market very similar to the craps in 'hit n run' theory. Although there is more insight and knowledge that can be applied to stocks, the options are tricky and you have to be very quick on your toes and have ballz the size of king kong.

I buy options in many different ways. To hedge a long position, create option spreads, and yes, even naked options, which is where getting in and out is the way to go without getting too greedy. Just today I bought aapl 165 calls for this week expiration at .96 cents this morning. They just hit 3 bucks, so I tripled my money. I though long and hard about holding on to them for another couple days as I think aapl will continue to leg up with momentum and option holders will have to cover their calls..... but Ive done that in the past and it didnt work out so well... so these days, just as in craps, I hit n run and never look back. I may hold on to just a few just to have the action.

That's great when the stock soars,but what about when it tanks?

Oh boy...it's this guy again. Talking about past action. Him and ZK should team up. Between the past and future successes you two would kill it. I can see it now ZK a.k.a. Brains and WMW a.k.a. Balls. The double B duo. Watch out world, coming to a venue near you.
I want movie rights on "Straight Out Of Mom's Basement"

Quote: MrV

That's great when the stock soars,but what about when it tanks?

If the stock tanked his 96 cent (x however many he bought) would be worth zero. He made a bet on the stock without needing to actually have the cash to buy a $160 stock.

you cannot fairly compare the two.....craps has a fixed edge against you and the other doesn't

Quote: MrV

That's great when the stock soars,but what about when it tanks?

That is when you buy the puts.

.... n then Warren Buffett announces that apple is his number one pick and he is buying a lot more!

Quote: SOOPOO

If the stock tanked his 96 cent (x however many he bought) would be worth zero. He made a bet on the stock without needing to actually have the cash to buy a $160 stock.

You are correct Soopoo. Playing naked options is a very risky game period. Especially for those who do not understand the market and how options work... but if you have a good understanding of how they work and know your underlying stocks Trends, you can make very quick and large returns in a matter of minutes hours and even days.. I had 100 call contracts bought at $0.96. I sold 70 of the contracts and held on to 30. Warren Buffett gave me a nice bump today in addition to the other factors I mentioned with the uptrend and call covering.

Btw, soopoo, thanks for being a stand-up guy and honoring your Super Bowl bet with me. I appreciate you.

Quote: WatchMeWin

You are correct Soopoo. Playing naked options is a very risky game period. Especially for those who do not understand the market and how options work... but if you have a good understanding of how they work and know your underlying stocks Trends, you can make very quick and large returns in a matter of minutes hours and even days.. I had 100 call contracts bought at $0.96. I sold 70 of the contracts and held on to 30. Warren Buffett gave me a nice bump today in addition to the other factors I mentioned with the uptrend and call covering.

Btw, soopoo, thanks for being a stand-up guy and honoring your Super Bowl bet with me. I appreciate you.

Sadly for me, I think there are TOO MANY members who have thanked me for paying up my losing bets..........

My B in law, although not a day trader per se, does make consistent money with options. I on the other hand never use them; if i can't afford to buy the stock, I am not getting involved...

Quote: SOOPOO

Sadly for me, I think there are TOO MANY members who have thanked me for paying up my losing bets..........

My B in law, although not a day trader per se, does make consistent money with options. I on the other hand never use them; if i can't afford to buy the stock, I am not getting involved...

Its always good to stick with what you know.

For a lot of people, it's a matter of a lot of small wins followed by one or two big losses and then they don't play anymore. I personally was a long time buy and hold guy, but since moving to Vegas put most of my money in managed accounts. I have little need to chase money or swing for the fences. Small risk and small reward is A-OK with me.

Quote: WatchMeWin

For those who play the stock options market as well, this may mean something. I play the options market very similar to the craps in 'hit n run' theory. Although there is more insight and knowledge that can be applied to stocks, the options are tricky and you have to be very quick on your toes and have ballz the size of king kong.

I buy options in many different ways. To hedge a long position, create option spreads, and yes, even naked options, which is where getting in and out is the way to go without getting too greedy. Just today I bought aapl 165 calls for this week expiration at .96 cents this morning. They just hit 3 bucks, so I tripled my money. I though long and hard about holding on to them for another couple days as I think aapl will continue to leg up with momentum and option holders will have to cover their calls..... but Ive done that in the past and it didnt work out so well... so these days, just as in craps, I hit n run and never look back. I may hold on to just a few just to have the action.

Good luck trying to beat the market with quick profits by day trading, swing trading, option trading, whatever. If you're not a big fish with inside information you're gonna eventually get roasted and lose it all. Get rich quick schemes only work for the ones who are already wealthy and have inside information. Bitcoin seems to be the obvious exception due to it being completely predictable, but it's still a game I'm not really wanting to get into at this point in my bankroll and the returns I want to make. Maybe if I get to around 80-100k i'd put 30k into it on a good buying dip. If somehow I'm wrong and bitcoin goes bust, which is very unlikely i'll still be at 70k. It's all about money management.

Patience leads to wealth. History shows us that. Problem is, everyone is in debt and looking for a get rich quick and have no patience. Before they know it they're 40 with no savings because they never 'started'. My advice to you is first get out of debt for any payments you have, especially before setting foot in any casino. Then find something that pays well to build a nice bank, but most importantly learn how to save and not live beyond your standards. Finally, invest in a booming sector index fund such as technology, which has destroyed the market in terms of returns for the past decade. I recommend VGT. You'll soon realize something called 'compound interest', which will be the best thing you will ever experience in your life.

Nonetheless you seem to have lots of gambling tendencies, which are gonna eventually make you go broke and working a minimum wage job the rest of your life with debt looming over your head if you don't wise up. I mean you honestly believe you can beat craps, that's almost an immediate red flag unless you're a dice control phenom, but for that go ahead and tell me your long term results if that's the case. Let me guess you're going to just pull a figure out of your head because you never wrote anything down? If you do that, that already tells me you're a losing player. Real pros keep logs and use logic. Gambler's guesstimate and go by hearsay

Quote: ZenKinG

Good luck trying to beat the market with quick profits by day trading, swing trading, option trading, whatever. If you're not a big fish with inside information you're gonna eventually get roasted and lose it all. Get rich quick schemes only work for the ones who are already wealthy and have inside information. Bitcoin seems to be the obvious exception due to it being completely predictable, but it's still a game I'm not really wanting to get into at this point in my bankroll and the returns I want to make. Maybe if I get to around 80-100k i'd put 30k into it on a good buying dip. If somehow I'm wrong and bitcoin goes bust, which is very unlikely i'll still be at 70k. It's all about money management.

Patience leads to wealth. History shows us that. Problem is, everyone is in debt and looking for a get rich quick and have no patience. Before they know it they're 40 with no savings because they never 'started'. My advice to you is first get out of debt for any payments you have, especially before setting foot in any casino. Then find something that pays well to build a nice bank, but most importantly learn how to save and not live beyond your standards. Finally, invest in a booming sector index fund such as technology, which has destroyed the market in terms of returns for the past decade. I recommend VGT. You'll soon realize something called 'compound interest', which will be the best thing you will ever experience in your life.

Nonetheless you seem to have lots of gambling tendencies, which are gonna eventually make you go broke and working a minimum wage job the rest of your life with debt looming over your head if you don't wise up. I mean you honestly believe you can beat craps, that's almost an immediate red flag unless you're a dice control phenom, but for that go ahead and tell me your long term results if that's the case. Let me guess you're going to just pull a figure out of your head because you never wrote anything down? If you do that, that already tells me you're a losing player. Real pros keep logs and use logic. Gambler's guesstimate and go by hearsay

Thank you for your profound wisdom.

Quote: WatchMeWin

Thank you for your profound wisdom.

WatchMeLose meets WatchMeWin

Quote: RogerKint

WatchMeLose meets WatchMeWin

cousins of WatchMeWhip, and WatchMeNaenae

Thanks for making me spew my drink.

Quote: WatchMeWin

.... n then Warren Buffett announces that apple is his number one pick and he is buying a lot more!

Didn't Forrest Gump become a multimillionaire buy buying stock in Apple computers because he liked fruits or something like that? :)

I've been trading for years and trust me, it's beatable. Just play it slow and steady and don't go looking for the kill.

Don't be greedy and put your whole wad into one posistion. You can keep it conservative and sell covered calls or do dividend captures (look it up for those of you who don't know what it is).

Just consider the commission as the house vig.

Quote: Lucca3927

I've been trading for years and trust me, it's beatable.

Agree.... but by the few..... Just like most will fail at card counting, most will fail at stock/option trading. Not to be confused with stock buying and holding, which is easy and MOST succeed at.

Quote: SOOPOO

Agree.... but by the few..... Just like most will fail at card counting, most will fail at stock/option trading. Not to be confused with stock buying and holding, which is easy and MOST succeed at.

Well I've been doing it for a long time so I must know what I'm talking about. So many people watch a movie like Trading Places (full of inaccuracies, by the way) and think it's easy. It's a real job, with real work, that needs years of experience and the ability to control your emotions.

I wish I could even count the number of times that I've been on the wrong side of a trade, but that's why you don't put your entire wad on one trade.

Tomorrow is another day.

Quote: Lucca3927

Well I've been doing it for a long time so I must know what I'm talking about. So many people watch a movie like Trading Places (full of inaccuracies, by the way) and think it's easy. It's a real job, with real work, that needs years of experience and the ability to control your emotions.

I wish I could even count the number of times that I've been on the wrong side of a trade, but that's why you don't put your entire wad on one trade.

Tomorrow is another day.

Agree.

Quote: WatchMeWin

Agree.

Above all STAY HYDRATED!!!!!

Quote: MaxPen

Above all STAY HYDRATED!!!!!

....so sad , son.

I can no longer sit back and allow communist infiltration, communist indoctrination, communist subversion, and the international communist conspiracy to sap and impurify all of our precious bodily fluids.