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Norm,,,first I'd like to thank,,then try to explain my side of story.
<I think the object of successful trading is to not to just get in but get into the market at a favorable price that represents a favorable risk reward situation>
This is the reason I emailed RT to ask for answers on how to get a better price under a situation.
<Secondly, unless this is part of a spread or hedge, I don't understand why you would bother writing a call option on a depressed market for 30 points. >
I have long postions already,,,,so I thought I could secure my meager current profit by writing calls a few strikes above my entry price. And the stike price is just above the ongoing trading range. Also,,,30 points is not the my goal. It's gotta be at least 200 pts. But then,,,you just reminded me that it's better to short options when there's volatility. So,,I maybe re-consider this plan.
This is my first trial on options trading,,,so I don't really have a feel about this.
<By trading for a large profit margin, I trade much less, trade small positions and therefore I don't over trade. I feel alot happier and healthier trading this way.>
Sure,,,that's the best way to trade. But I simly don't have tools, experience or knowledge. I usually trade momentum and last 3,4 days. Maybe I should learn to use astrology to gain longer term perspectives.
Anyways,,,Thanks for your comment.
PS. English is not my native tongue,,so I might said something not readily understandalbe or misunderstandable. You have to excuse that.
REPLY SEPARATOR ***********
On 4/27/98, at 9:28 PM, nwinski wrote:
>kevin sheen wrote:
>
>> Today I tried to sell call options on Heating Oil and found great difficulty to get filled with nice price.
>> I'll try to do that again,,,,but I need some help on placing orders.
>> Attatched a screen shot of the quote page of Heating Oil.
>> I'll try to sell June Heating Oil call 4800. As you can see,,,last price was 30pts.
>> But looking at Bid/Ask price,,,there's too much of difference. How can I get paid with best price?
>> I can't bid nor offer,,,,since I'm not on the floor. I can't place just a limit order since it might not get filled.
>> I wonder how any experienced option traders buy or sell.
>> Any comments are welcomed....
>
> Kevin,
> I think the object of successful trading is to not to just get in but get into the market at a favorable price that
>represents a favorable risk reward situation.. The time to be aggressive about trading is when you are wrong and need to
>get out. Then you can consider using a market order. Othewise, and especially with thinly traded options, you should
>always use a limit order to enter the market.
> Secondly, unless this is part of a spread or hedge, I don't understand why you would bother writing a call option on
>a depressed market for 30 points. Best case is that you will get to keep 30 points minus comissions. Worse case is that
>THEY will get to keep your house. This illustrates that most traders trader for too small a profit margin. 30 points is
>what I may make or lose because I missed my entry by going to the refridgerator. Heating Oil often swings 2000 points or
>more. You should be thinking in terms of how you can make at least 300 points if not more. For example, I have been
>trading crude oil this year and have a 450 point profit goal. By trading for a large profit margin, I trade much less,
>trade small positions and therefore I don't over trade. So, I save alot of money on brokerage commissions, quote
>services (I use delayed), and stress related health costs. I feel alot happier and healthier trading this way. I can
>wait weeks or months for my goals to be met. Meanwhile, I can be productive in other areas of my life. I don't think
>that I could be so relaxed being naked short a nearby heating oil optoin for 30 points.
>
>Regards,
>
>Norman
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