/options/

No, I meant a cost breakdown.
How many calls did you buy, and for what price did you enter/exit them?
It sounds like I would have picked up $400 per 100 shares.

Some terribly unsophisticated posts in this thread. Do yourselves a favor and head over to Tasty Trade and learn to trade professionally. Mostly options but they do it all really, futures, currencies, commodities, TA, everything.

ok, the option price per option was $4.10, I bought one contract (100 options) for $410 for a call of DY at 95 by September.

it went up to 96.5ish when I sold the call. so I sold the 100 options at the new price per option (because of how quick it made it there) was like $6.50. which was about $650.

so $650 from profit - $410 in cost = $240

ROI: $240 in net gain/$410 in initial investment = 58%

This.

>Lol i can see the sad frog posts now when user gets exercised on first time

Hard to compare, I guess.
My capital outlay would've been far higher than yours, for sure. No time decay means I could hold indefinitely, but I'd probably stop out not too much higher than your loss (if the trade went against us), $650.

Most brokerages require 20-25k in cash/cash equivalents to be approved for a margin account that's required for options trading.

That pretty much filters out 90% of the people on Veeky Forums

WallstreetBets on Reddit is a good place to troll options

You're a little out of date senpai, the world of finance is being disrupted and is opening up more than ever to retail investors and you can start with a lot less capital than in past years.

There is a couple of things here worth pointing out that you're right about though both positive and negative. Starting small, if you can make it work, you can make it work really well and understand really good fundamentals without really hurting yourself too. Once you do get more capital to work with you will respect it a lot more and never allow yourself to commit too much and let yourself get over confident and hurt yourself. You can also trade some option strategies (defined risk) in your IRA. Trade small, trade often desu.

>opening up more than ever to retail investors
Interesting.
Do you know of a brokerage that won't demand $25K for a margin account?

TD Ameritrade will let you start around 2k. Interactive Brokers you can start around 10k. In fact most brokers you can start with a lot less than 25k. Look at something like Robinhood as well. I don't even think there is a minimum and there's no fees either.

The market place is being disrupted.

>TD will let you start around 2k
Lol. They're my broker, and I didn't know that shit.
Then again, I opened my margin account a long time ago, and haven't checked their policy since.

>TD Ameritrade will let you start around 2k
That's just to be considered for a margin account, it doesn't mean you'll be approved. Read this:
>tdameritrade.com/retail-en_us/resources/pdf/AMTD086.pdf

>Interactive Brokers you can start around 10k
That's just a lie. Read this:
>gdcdyn.interactivebrokers.com/en/index.php?f=4745
And look at the section titled "Securities Initial and Maintenance Margin." It says, and I quote, "For market participants identified as pattern day traders, the maintenance margin requirement is a minimum of $25,000 (or 25% of the total market value of the securities, whichever is higher)."

Why would a stranger lie on the internet and believe their own lies?

>arm chair robinhood fag detected

Your response just proves you have no real world experience on how margin/option trading works. You just googled margin account balance and cited 2k without knowing that's only the finra minimum to qualify for a margin account without being subjected to a margin call.

If you've really traded options before, you'll know that if you wrote a single call option on the SPY and your position ended upside down, you(and ultimately your broker) will be responsible in 21,800 in deliverables.

guide to free money:

>have a large margin

>short VXX

it's nature that VXX will drop over time

Ok, well, chill out bro. I'm just saying the bar is lower than it's ever been.

The main thing is that large financial institutions selling you on the fact that you can't possibly do this stuff yourself and that you need to pay them a cut of what you can earn on your cash is being eroded more and more every day.

It's a good thing for all of us.

Also if you read IB's terms and conditions even more, if you're under 25 you can start doing a limited amount of stuff with a lot less than I first said. I'm still shopping around and looking for a broker / piece of software I'm happy with. I'm still exploring my "options."

I still have my funds invested in a regular pension right now and other savings invested in both active and passive funds. But I definitely intend on using all facilities available to me to stretch my capital to the max.

>I'm just saying the bar is lower than it's ever been.

And that's not a good thing because then you'll have a bunch of mom and pop retail investors who don't know what they're doing, not just losing all their money, but going into debt because a bad trade went south.

There's a reason why "accredited investor" is a federally defined and regulated status

>I'm just saying the bar is lower than it's ever been
Some of that is good, like making buys on your own instead of calling a broker and paying $50 commissions.
Other shit, like Robin Hood, is not so good. That's just more industry duping of the gullible public, they're just doing it in a different way. Convincing people that they should approach the market in a casual fashion benefits no one but RH.

I've been paper trading on Thinkorswim and Interactive Brokers platform for over 8 months exclusively with options using only a tiny amount of capital in order to prepare for when I seamlessly move over to doing it for real. I'm not in the US so cant use the services like TD ameritrade and Thinkorswim, Dough, or Robinhood or I would have already gone live.

I probably will start using IB's platform once I save enough but for now I'm just learning and building up my capital in regular funds. IB at least gives me pretty nice access to global markets and their fees look reasonably competitive. But I curse the fact that I can't do exactly what I want from here.

No idea why you're getting so hostile over this though. This is all wonderful for us retail guys.

Ok good luck

Thanks. It's all pretty exciting.

Even YTD I'm up 13.5% in the funds I'm in right now. I'm not that unhappy paying 0.5% to some fund manager for that. But I do just want to get in the game and do some real trading for myself. I'm just building a solid platform for myself to launch from. I'll never expose myself where I can really hurt myself but I do want to take on more risk with a portion of my capital.

Just going to keep building up more and more year by year and watching it compound in on itself. I've seen the power of this stuff and it's inspiring.

Post a screenshot of your portfolio and we can probably steer you further into the right direction by telling you what you're doing right or wrong (assuming you have reasoning behind every position in your portfolio).

Judging by some of the initial posts in this thread, I'm already light years ahead of almost everyone here with what I've learned from Tasty Trade, I already know I'm on the right track. I've also done quite a bit of traditional study with all sorts of material my current broker provides and other random stuff on the internet and also other friends in the industry. Although, some of the bollocks they come out with you really realise how most of them are just salesmen peddling the same old fear, uncertainty and doubt.

But I'm all ears open to absorb and learn as much as I can, and for many years to come.

There has been a few decent investment and trading threads knocking about in Veeky Forums and I'm always on the lookout for good advice and have contributed to them myself too.

It's just a shame how much stuff there is going on with people essentially gambling hard. Yet no one ever complains about people gambling hard in casinos. But as soon as you mention the stock market, people seem to get all serious on your ass about it. The fact of the matter is, you can gamble hard in the stock market... but you can also invest sensibly and every shade of grey in-between.

>I'm already light years ahead of almost everyone here
Well, at least you're modest about it.

>following somebody else's successful trades while thinking in your mind that it is you who is deciding what to trade and when
>be you

Pick two nigger.

Go and watch those guys and gals. 35+ years on the floor of the CBOE and they're handing out their knowledge there for free.

Then come back and we can all discuss what we've learned enthusiastically. I'll happily admit I'm a newbie at this but It's easy to recognize good advice when you hear it. All backed up by solid research and mathematics.

Judge for yourselves.

I have a bachelors degree in Business Administration-Finance, I don't need someone to tell me how to spot a good investment opportunity kiddo.

>I'll happily admit I'm a newbie
You're a "newbie" who is "light years ahead of almost everyone here"?
Do you realize how pompous, yet moronic that sounds?

They're also the people who built the Thinkorswim platform and sold it to TD Ameritrade. They built that technology. They were trading successfully before any of those tools existed. Flying by the seat of their pants, doing the maths in their heads, making the the strategies that we use now. Real, oldschool traders that knew what worked even without any of the research they're providing us with today. They went though all those bad market crashes in the past and still came up smelling of roses. They've been round the block a few times. They've seen some shit.

But it's time for me to go watch the Olympic opening ceremony now. Peace.

Whatever TD paid you for shilling them, they got their money's worth.

You realize that trading platforms existed before Thinkorswim right? They weren't geniuses, just nerds who knew programming and learned from actual traders while on the job programming. We still use nerds like that in the bank today, we just stuff them in the back office so they don't get in the way of business.

Why do you appear to be ganging up on me and saying negative things towards me constantly?

It's like you don't want to benefit from generously and freely passed on knowledge that will help you to gain real wealth. I'm not even wealthy myself but I hope to be in the not too distant future.

I'm trying to remember some quote I heard somewhere before about listening to people who hand out their knowledge to people for free.

The ones you have to watch out for are the ones who want to charge you for it.

>saying negative things towards me
All I pointed out was that claiming to be a newbie who is somehow smarter than almost everyone here is laughable.
Your response was to shill TD to someone who (if you could read the thread) is already one of their clients.
Why would you shill TD to a client?
The only answer I can come up with is that you are a paid shill.
Sorry if that sounds insulting, I'm sure plenty of people have no shame in doing it.

You've just spent way too much time on Veeky Forums and being cynical. I have too. I'm not saying I'm smarter than anyone. I'm just sharing things I've found out and experiences I've had. The cliche "Don't shoot the messenger" springs to mind. I just want to point you towards Tasty Trade who I find to have a wealth of knowledge that is totally invaluable to anyone interested in trading and investing. It costs you absolutely nothing and you can either take that as you wish or leave it. It's up to you. I care not either way.

>I'm already light years ahead of almost everyone here
>I'm not saying I'm smarter than anyone
All righty then.

Let me guess, I should check out TastyTrade?

Let me ask you one thing. Have you even watched even 1 minute of anything over there?

well gambling is fun, and in options you can actually beat the house

Stop shilling on this board. We don't give a fuck about your Tasty Trade or Thinkorswim you cunt.

Alright pal. No need to get upset. Just offering some advice.

No you aren't offering advice. You're recommending a product that you let someone else sell you on. Do you know how crazy this looks from the outside? You're advertising for a company without getting paid for the advertisement and the best part is you don't even know that you're doing it. You got got.

Just out of interest, have you got any advice to offer or a trading platform you'd recommend?

Hey, I'm just sharing. Sharing is caring you know. I'd love them to sell it on me. But I can't use it outside the US. I do know what I'm doing. I'm helping promote them. They actively ask their viewers to do that. They've given me much and it's the least I can do in return.

What they offer is so valuable. and it's freely available.

No, do your own research and don't be stupid.

I'm constantly researching things. Reading, learning, watching, listening. Just hoping someone with a such a loud mouth as yours had something useful to say.

This is what i do, im up lik 40% for the year, shits magic.

Down 3k this year playing with options. Not sure I have the stomach for instruments that lose value as each day passes.

Buy eth and stop being a wagecuck

>every options thread
>some fag shills his blog-tier site

What's the point of buying options if you're not using it in combination with shares or assets for insurance? If you want to speculate on a stock, why not simply long/short it? What's the advantage of getting an option instead?

Cost basis reduction.

I'm not sure what you mean. Are you talking about a butterfly spread?

I guess you can sell a few calls for a portion of your shares when you expect them to stay flat, but other than that I don't really see the point.

I'm just referring to it in a very general way. It's not applicable to just options either. If you can buy something cheaper than it costs in the marketplace then you're already up. It applies to all areas of trade, not just the stock market.

This thread is cancer.

>I bought one contract (100 options)
No, you bought one call option contract which is representative of the right to buy 100 shares of the underlying at the strike price.

>Most brokerages require 20-25k in cash/cash equivalents to be approved for a margin
That's day trading margin.

>You're a little out of date senpai, the world of finance is being disrupted
No amount of "disruption" is going to stop regulators, sorry user.

>TD Ameritrade will let you start around 2k.
$2,000 is the regulatory minimum required by regulators for an ordinary margin account; however, you are not guaranteed approval even if you have $2,000.

Secondly, you will have to get broker approval to trade options under a tiered system. With $2,000, It's likely you'll only be approved to engage in covered calls and cash secured puts. Beyond that, your broker will require you to meet additional requirements.

>but going into debt because a bad trade went south.
This is only possible in a leveraged position which has no fixed, intrinsic limit to loss. Whether people lose their own money on something is not a legitimate reason to block people from market access by way of regulation.

No fucking way is anything _that_ predictable and inefficient.

Depends on the particular option. For the traditional purposes, you'd buy a call as a means of 'locking-in' a price on a security--typically a stock--while having less absolute downside risk. Traditionally, you would only buy a put in conjunction with owning the underlying in order to hedge against loss.

Other than those, the reason for buying is just speculative purposes.

I've done some options trading. It's a really fun way to lose money.

>Cost basis reduction.
Those words don't mean what you think.

Thanks for confirming what I suspected about the kids on Veeky Forums who play with options.

...

I write covered calls every week. Very conservative. 20% annual return.

Have you heard about Tasty Trade?

I hear they're the way to eternal riches etcetera

>covered calls
Congrats grandpa, you're underperforming a simple equity index.

Pretty much insurance on an investment. If you don't win you dont lose much, if you do win you win a little more

Took a screenshot of some of the option positions I've got open at the moment (just paper trading still right now) It's only a few at the moment as I took off a few winners and losers on Friday. Looking forward to getting back in the game once markets start opening up for Monday trade.

I'm enjoying learning all this, just thought I'd post a screenshot, hopefully get some more discussion going.

>If you don't win you dont lose much
Yes options CAN be used as a hedge, but they always come with a downside (such as capping your gains).
>if you do win you win a little more
Yes options CAN be used as leverage, but always with greater risk of loss (sometimes unlimited risk).

Options have their uses, but not in the portfolio of 99% of individual investors. There are better, cheaper, safer ways of managing risk, and while its generally a bad idea to use leverage, there are better, cheaper, and safer ways of using leverage.

For me, there are a few securities that I don't like enough to go long on. Mainly ones that are risky, but I see as potential acquisition targets. By buying a call or two, I can see some potential upside without losing sleep at night.

Neg Convexity isn't magic