I dont have the guts for options..the stories of folks losing their accounts plus much more just spook me to the core.Like the guy that lost his entire account of nearly 40k plus he owed Etrade another 160k and that happened literally overnight.Pretty sure he was shorting a biotech stock that had news hit after hours.
Just not for me.
I dont have the guts for options..the stories of folks losing their accounts plus much more just spook me to the core.Like the guy that lost his entire account of nearly 40k plus he owed Etrade another 160k and that happened literally overnight.Pretty sure he was shorting a biotech stock that had news hit after hours.
Yeah those bloody option stories are usually when someone is short a contract in either direction...then your downside is unlimited potentially.
I did the options game several times and it can be a huge rush for sure if you do it right and educate yourself before you being and really understand that the HIGH HIGH majority of options holders lose it all...really they do.
I dont know how you can go long options at this level and I dont know how you can go the puts/short side either...you are fighting the FED on the way down and you are fighting valuations up here plus the vig on options requires a big move especially if you go short time horizon...and I dont know if I am wanting to risk that given how muted the volatility is now.
Yeah those bloody option stories are usually when someone is short a contract in either direction...then your downside is unlimited potentially.
I did the options game several times and it can be a huge rush for sure if you do it right and educate yourself before you being and really understand that the HIGH HIGH majority of options holders lose it all...really they do.
I dont know how you can go long options at this level and I dont know how you can go the puts/short side either...you are fighting the FED on the way down and you are fighting valuations up here plus the vig on options requires a big move especially if you go short time horizon...and I dont know if I am wanting to risk that given how muted the volatility is now.
Wall do you remember that story of the guy I mentioned..he started a go fund me account and got like 5k back I believe but got roasted everywhere for it.
Wall do you remember that story of the guy I mentioned..he started a go fund me account and got like 5k back I believe but got roasted everywhere for it.
Thanks for the input guys. I'm certainly not saying I'm an expert, and I'm not into get rich quick schemes. I can see why people do their dough on binary options. They may as well go to a casino.
I'd be looking at vertical credit spreads predominantly where you have defined risk trades, selling an option then buying an option further OTM with same expiration. Trades would take place at support or resistance levels. Would be looking at expiry around 45-60 days.
Been reading a lot on it and sifting through the good and bad videos on youtube. Basically, the fewer the views or the more boring the video appears to be, the more likely the video is to be useful!
I think a lot of people simply go long or short and don't appreciate how the greeks work. So they leave themselves heavily exposed to situations you mentioned above. Or they pick the direction correctly yet time is working against them so they never get to their break even point.
The hardest thing is I'm Australian - there's not many brokers who take on Australian accounts anymore. I'm not sure why this is ; legislation perhaps?
Cheers guys and BOL in your investing endeavours
BF
Thanks for the input guys. I'm certainly not saying I'm an expert, and I'm not into get rich quick schemes. I can see why people do their dough on binary options. They may as well go to a casino.
I'd be looking at vertical credit spreads predominantly where you have defined risk trades, selling an option then buying an option further OTM with same expiration. Trades would take place at support or resistance levels. Would be looking at expiry around 45-60 days.
Been reading a lot on it and sifting through the good and bad videos on youtube. Basically, the fewer the views or the more boring the video appears to be, the more likely the video is to be useful!
I think a lot of people simply go long or short and don't appreciate how the greeks work. So they leave themselves heavily exposed to situations you mentioned above. Or they pick the direction correctly yet time is working against them so they never get to their break even point.
The hardest thing is I'm Australian - there's not many brokers who take on Australian accounts anymore. I'm not sure why this is ; legislation perhaps?
Wall do you remember that story of the guy I mentioned..he started a go fund me account and got like 5k back I believe but got roasted everywhere for it.
A little but tell me more detail...
Quote Originally Posted by bucknuts:
Wall do you remember that story of the guy I mentioned..he started a go fund me account and got like 5k back I believe but got roasted everywhere for it.
Long story short (pun intended)he was betting against a stock and it had news hit after hours,lost his account of 37k and still owed Etrade 106k.Stock went from $2 to $12 once the news came out
Dont think that link is correct..
Long story short (pun intended)he was betting against a stock and it had news hit after hours,lost his account of 37k and still owed Etrade 106k.Stock went from $2 to $12 once the news came out
Yeah I dont know,I just remembered seeing the story and the guy sayn it was prob gonma cost him his 401k...just an awful scenario and one I could totally see happening to me lol
Yeah I dont know,I just remembered seeing the story and the guy sayn it was prob gonma cost him his 401k...just an awful scenario and one I could totally see happening to me lol
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