Wazua
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Options trading
Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Then 60 day is too long, unless you have info that the company will do well. When is the next iPhone coming out, we start planning with that in mind? So maybe I should just wait till 1st week of October and do a 60 day, coz by the time its maturing people will be shopping like crazy for Christmas so Apple stock should be doing well. Plus I read somewhere that for AT&T users, the iPhone price gets halved after I think November, so maybe I should just do a 60 day with hopes that most people will buy in November, the new one is coming out today?
Itz I think said something about options maturing the 3rd week of the month? So is it best to buy the last week of the month, especialy if you in for the long term?
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Rank: Member Joined: 6/10/2006 Posts: 201 Location: Nairobi
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I think you are still not in the picture, most trades occur in slots of 30 mins. So you only have half an hour to predict correctly. Its only a few blue chips and commodities like oil that offer 60 day trades.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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So basically im gonna have to do day trading? Oh wait, most trades are 30 minute trades? Wow!! Thats crazy, and it only happens when the market is open? Or is there after hours trading? So can you put in a whole day trade? If you are in the money at the end of the day, do they automatically sell it off for you?
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Rank: Member Joined: 6/10/2006 Posts: 201 Location: Nairobi
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It's real time, so you have to monitor every minute of activity..
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Wow thanks for the tutorial, that sounds like a very high stakes game. So you would be better off buying Apple on the day they unveil and when they start selling the new phone. Preorders start today.
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Rank: Hello Joined: 8/17/2012 Posts: 9
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I can see that Sizzla you have a lot of field experience, am just from school, too much theory, won't mind learning field from you. could you help? Daring ideas are like chessmen moved forward. They may be beaten, but they may start a winning game.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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@ITZ, are there charges for option trading except the premium you pay? LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Member Joined: 3/20/2009 Posts: 348
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@Nabwire.take time and learn options trading.Once you start trading you will understand why i say so and you will thank me for all the money i will have saved you.You asked me yesterday what were the best trades after fed action.Unfortunately everything has already moved so much especially if you are trying to get in today.XLF and financials will benefit greatly because of fed purchases of mortgage backed securities.I believe you are already in stocks like BAC,i would sell some and trail some.i wouldn't initiate new positions until after a pullback.watch MCP could be the next GMCR in terms of huge moves.
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Rank: Member Joined: 3/20/2009 Posts: 348
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[quote=kyt]@ITZ, are there charges for option trading except the premium you pay?[/qu
@kyt depends on your broker.its normally same price as trading stocks plus price per contract.mine is $ 4.95 per option trade+0.65 per option contract
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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itz wrote:[quote=kyt]@ITZ, are there charges for option trading except the premium you pay?[/qu
@kyt depends on your broker.its normally same price as trading stocks plus price per contract.mine is $ 4.95 per option trade+0.65 per option contract any taxes on the capital gains?? LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Member Joined: 3/20/2009 Posts: 348
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kyt wrote:itz wrote:[quote=kyt]@ITZ, are there charges for option trading except the premium you pay?[/qu
@kyt depends on your broker.its normally same price as trading stocks plus price per contract.mine is $ 4.95 per option trade+0.65 per option contract any taxes on the capital gains?? yes you have to pay taxes on capital gains just like any other asset class. http://www.backtaxeshelp...capital-gains-rates.html
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Yeah I think you are right, I will try and educate myself more before attempting, especially now that I know the trades have a 30 minute window. Whats XLF? And what are your reasons for MCP rallying?
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Rank: Member Joined: 3/20/2009 Posts: 348
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Nabwire wrote:Yeah I think you are right, I will try and educate myself more before attempting, especially now that I know the trades have a 30 minute window. Whats XLF? And what are your reasons for MCP rallying? XLF is the etf for financials.MCP is a spec play and insiders were buying and have been buying at the range of 9-12.its also a momo stock like gmcr and the moves can be parabolic.look at the charts and see where the stock was last yr,looks like its setting up well.However this is a spec so you keep it below 5% of your portfolio and put a stop loss at 12.50.china also reduced the licenses for rare earth companies from 120 to 67 this wk.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Ok thanks Looks like Sizzla made alot of money, the execs at Apple are genius, ati they stopped taking anymore orders after they got 2 million orders. Now you can be assured there will be long lines to get a phone, limit the supply and the demand shoots up exponentially
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Rank: Hello Joined: 9/25/2012 Posts: 4
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Nabwire wrote:Wait, you can only recoup your profits during expiry? So if I bought 60 day options, I can be locked in for the full 60 days? Midway through I cant decide to sell coz I have already reached my goal?
I only trade stocks and I have insomnia with numbers and percentages flying all thru my mind, I just wonder how people like you sleep with all that activity? Asia, Europe, US and Africa, gosh I would have to be on sleeping pills to be able to sleep. That sounds like a tough schedule. Dont get you hands too full....all the advise given here is valid, albeit... With Options, you dont "invest based on hope", otherwise you will end up bankrupt . My advise, combine it with Chart reading...atleast that way you will have a "feel" of market direction and not risk you hard-earned . You will have some "mganga" powers that way!
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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LOL I dont know how to read charts and honestly I dont believe in them. Someone told me of a way of buying the options without exercising your rights, that way if you are out of the money, you just lose the $100 or so that you initially put in.
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Wazua
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Options trading
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