Trading Thread

[barn32]

Originally Posted by parlay

Hi, hope you dont mind me in your thread. i was hoping someone could explain why the huge divergence in the indexes today. Do they not typically move with a tighter relationship?

Welcome. I've been eying the divergences very carefully today hoping the ES would head to somewhere around -20. But it's not happening.

After thinking about it, I think the DOW is down so much because of IBM, which is somewhat distorting that average.

Other than that it's kind of of a mystery to me too.

[barn32]

Actually, with the DOW down 225, the S&P should be down somewhere around -28, and right now it's down 12.

[parlay]

i just started playing options recently. i am holding some 2100 puts. i am anxious to see the relationship resumed

[barn32]

I'm long 200 AAPL at 130.94 going into the close and the earnings announcement. If I'm wrong I'm wrong. I'll just have to sell calls against it for a while.

But if it spikes up 3 or so points I'm going to get out.

[barn32]

I'm short 4 of the 126 AAPL 126 puts, avg. pr. $1.47

I also sold 2 short AAPL strangles 137/125 for $1.91.

Both plays expire on Friday.

[barn32]

Originally Posted by barn32

I also sold 2 short AAPL strangles 137/125 for $1.91.

I mistakenly sold this strangle instead of buying it, but I was able to get out and do it right with one minute to go.

Cost me about $80.

[barn32]

I just got crushed and this is very painful.

[barn32]

I'm going to have to trade my ass off to get out of this debacle. I'm now long 600 AAPL at 125.09, but it's the puts that have me the most worried. I badly need AAPL to hit 125-126 by Friday to mitigate the damage.

Either way this could take months to recover.

[ReplayRandall]

Originally Posted by barn32

Welcome. I've been eying the divergences very carefully today hoping the ES would head to somewhere around -20. But it's not happening.

After thinking about it, I think the DOW is down so much because of IBM, which is somewhat distorting that average.

Other than that it's kind of of a mystery to me too.

Here's the real reason:

UTX United Technologies Corporation 102.71 4:04PM EDT Down 7.77 (7.03%) 19,539,510

[Tape Reader]

IMO, opening ES will be the low for the day.

[parlay]

why?looks like they break 2100 and next stop is 2076

[PaceAdvantage]

Originally Posted by barn32

I'm going to have to trade my ass off to get out of this debacle. I'm now long 600 AAPL at 125.09, but it's the puts that have me the most worried. I badly need AAPL to hit 125-126 by Friday to mitigate the damage.

Either way this could take months to recover.

Sorry to hear, but hoping a lesson is learned here.

What you did was nothing more than gambling, and now you are paying the price.

It took me years to stop gambling in the financial markets, and I too paid a price. You are going up against the smartest and most heavily financed groups in the world in one of the most watched stocks in the world and you go in with the attitude "If I'm wrong, I'm wrong?" Sorry to beat up on you when you're down, but really, you and I have no business going to the plate against major league pitching wielding nothing more than a toothpick, which is basically what you did...

[barn32]

Originally Posted by PaceAdvantage

Sorry to hear, but hoping a lesson is learned here.

What you did was nothing more than gambling, and now you are paying the price.

It took me years to stop gambling in the financial markets, and I too paid a price. You are going up against the smartest and most heavily financed groups in the world in one of the most watched stocks in the world and you go in with the attitude "If I'm wrong, I'm wrong?" Sorry to beat up on you when you're down, but really, you and I have no business going to the plate against major league pitching wielding nothing more than a toothpick, which is basically what you did...

Everything you say is true. I didn't think things through. Had I done so I could have made a winning trade.

That being said, the Market Gods smiled on me today and allowed me to escape with a $350 loss. (It could have been $3-5000.) All trades together I actually ended the day +$100.

Enough is enough. I'm taking a two-week vacation. The only trades I have on are existing spreads.

I need to get away from this for a while.

[badcompany]

The media was acting as though Apple stock fell off a cliff when all it did did was come back to a trading range where it had been for several months.

Meanwhile, anyone who shorted Apple at the open got worked.

[Ocala Mike]

"Trading range" - music to the ears of the conservative investor who's into SELLING covered calls on "hot" stocks that everyone's knocking themselves out BUYING calls on.