Options Trading Thread

[thegreatgate]

Not bad, AMED up 6%, the September $40 calls are up 230%:

[thegreatgate]

RU picks DPTR @ 2.xx on September 9, 2009 (When I was alerted it was $2.70s)...

On September 9 I check the DPTR calls $4 strike (October and December)....

Originally Posted by thegreatgate

Just going to write this down for a future reference, not in but could be a 5-bagger (options 5-bagger, not stock):

DPTR call options:
October, $4 strike, current ask is 30 cents, bid 20 cents, last 25 cents
December, $4 strike, current ask is 45 cents, bid 35 cents, last 35 cents

October $4 strike now @ 75 cents from 25 cents (+200% or 3x investment in two days)
]

Demeber $4 strike now @ 86 cents from 35 cents (+146% in two days)


....And that is why when Ru makes a pick strongly consider getting the call options! Wish I would have!!!!

[Magn3tar]

Level 1 approval makes the following options strategies available:

Level 1

Covered calls, including:
Covered calls sold against stocks held long in your brokerage account
Buy-writes (simultaneously buying a stock and writing a covered call)
Covered call roll-ups/roll-downs

^^^ Looks like I need to learn what all this means now!

[Magn3tar]

Here is sogotrade's pricing for options..

Equity Trades
Online (market or limit)* $3
Unlimited shares *
Broker-Assisted ** $27
Unlimited shares **
Option Trades
Online $3.00 plus 70¢ per contract
* For stocks priced under $1.00, the online commission is $3 plus ½% of the principal value.

[Magn3tar]

And just to throw this out there here is my refer a friend link.. When I first started I got 100 free trades for 30 days, not sure if that applies to options though

Your Personal Referral Link:https://www.sogotrade.com/Setup/Default.aspx?rf=349223

[Magn3tar]

I believe I understand the basics now, I would probably learn best by doing. I'm going to keep reading up on L1 options trading. Thanks for the help stockzilla / GG

[thegreatgate]

I need to switch to another broker for options cause Scottrade charges $1.25 a contract + $7/trade. Sogotrade is only 70 cents per contract and $4/trade (so about a 50% discount on commissions).

[Magn3tar]

Feel free to click that link It required a $500 start up deposit

[Magn3tar]

So I'm having a hard time figuring out why you make money if a stock goes up that you hold a contract on (call). My thinking is if you called DPTR at 3.00, bought 5 contracts (500 shares) and your option price costed.. say... $50 (wild guess) When DPTR reached 4.00 per share you are up $500? (not including option fees) Do these trade like an EFT to where your not competing against other people's buy / sell listings?

[thegreatgate]

PCX $12.50 September calls soared today (stock went up 22%):

See day low, day high, last, and % change: