So, I just bought some 18.50 strike call options on SLV that expire on october 21st, am I gonna be fucked?
I figured I'll prolly be fucked but I just had an urge to buy those options. What is that pic you posted?
this is an options market overplayed on a probability distribution.
To be fair, I don't see these markets as anything other than rigged. I'm just trying to align myself with the people doing the rigging.
if you wanna fix it you can sell the straddle on top of that and have a jade lizard on.
remember every time you buy something you should sell something to pay for it.
I don't even know that much about trading options. I only spent about $200 on those. I'm just trying it. I had some puts back in August that went in the money for only about 2 days.
there is a tutorial dough. first seven sections are pretty short.
I take it you trade options regularly?
a little over a year now.
You've done alright with it? Do you trade on any specific stock/asset?
terrible, but that's mostly b/c I trade too big and too short term for my account size.
assets are pretty irrelevant for options traders. all that matters is liquidity.
SLV was one of the first I traded
my biggest win was a free call I had that went through earnings.made 3k off $20
they're rare but they happen.
my biggest loss I tried to catch a falling knife.
I used to not believe markets were rigged until I started watching options. I've seen too much shit around options to fully dive in. I think the options traders are the ones who actually get fleeced the worst.
what makes you say that.
Just seeing how things happen afterhours and some of the short term moves that happen. On august 12th, silver spiked upward through the $20 price for a couple hours, just long enough for the $20 puts to go to 1 cent and then they all got bought up and silver quickly did a reversal and dropped back through that price just in time to expire at 30 cents. I had puts on NIKE during one of their earnings calls also and sure enough, afterhours it jumped 3% only to dive 7% the next morning. Just out of the range for the cheap puts. There was no reason for that afterhours jump.
that's a typical high level play. The metals markets are global.
China is relatively new to the game. if they want to buy overpriced silver that's fine.
Beyond that the overnight hours are significantly smaller volume so there is significant counterparty risk for these institutional investors.
SLV is a 6.8B$ etf, if they moved the price to 20 from 17, they had to spend millions to make this move. all to buy what a couple hundred puts. even at 30x return they took a huge risk. to make thousands.
They didn't move it from $20 to $17. It was from like $19.70 up to $20.23, back down to $19.70. Moving a market isn't as hard as you think. Market makers just pick a price and set it at that pretty easily. They are the ones who dump the large volume of calls and puts on markets also.
The Bank of England is the one that provided the gold for new share creation at GLD. For what purpose did that need to happen?
I'm learning options too. Here's some of what I've got going on right now too. Wish I could use Dough or Thinkorswim but I can't use them in the UK. Just testing out IB's TWS for now, found it quite difficult at first but starting to get used to it now. I can't seem to figure out how to roll option strategies as a whole though, It only seems to want me to do them as singles.
How's it been for you? Profitable?
Yeah I am positive overall, although because I'm learning and only paper trading I've been letting certain bad things happen to me just so I can actually see exactly what happens when those bad things do happen. For instance not rolling out the way of dividends, allowing myself to get assigned stock instead of closing positions, etc etc. Just want to see how you can screw up so I don't do those things when I start using real money.
Also, as you can see most of the stuff I have on there is going against me right now but that's simply because any winners I've already managed and taken off.