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  • #31
    Originally posted by revo View Post
    In just a few weeks of options trading, my average trade has generated a 100%-150% return. That's not a typo. I have a few that I've held just a few days and am up 300%-500%. It's insanity. Now of course there's downside, because the clock is ticking. And I've lost on a few bets, but your downside is limited to only the amount you put in -- which again, is a fraction of the amount of the cost of the stock. Yet you participate in the entire gain. And you get to go both ways, bearish or bullish.
    Those are some very Madoff numbers there...
    I'm not expecting to grow flowers in the desert...

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    • #32
      Originally posted by Gregg View Post
      Just trying to understand, no offense meant:

      Why wouldn't everybody be doing this?

      What type of investment would I need to try this out? Can a real noob understand the book enough to make some profit?
      Anyone can do it. You obviously have to open an account with a brokerage firm, be options trading approved, and have enough money to possibly throw away really quickly. A single options contract could run anywhere from a few hundred bucks to 5-10 thousand, and since they expire, each day that goes by some money evaporates. Plus, you're going to be glued to your computer screen for the entire trading day.

      If I were a noob, I would think this book could be more dangerous than helpful.

      And yeah, if you have been reading articles, lots of Robin Hooders have been doing this successfully, but there have also been many horror stories.

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      • #33
        Originally posted by heyelander View Post
        Those are some very Madoff numbers there...
        Nah, Madoff numbers are "8% a year guaranteed." These are FAR from guaranteed numbers.

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        • #34
          Ive heard that options trading is much more like gambling than stock trading (thus the great returns when the market is hot), but that's from a noob who doesnt really get the options side.

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          • #35
            Originally posted by Gregg View Post
            Why wouldn't everybody be doing this?
            Revo did a great job noting some of the issues - high risk, criticality of timing, adequate upfront portfolio, need for minute-to-minute following.

            I'll add another, using one of revo's comments as a reference:

            But if you have a gameplan, like I do, where you know when to buy, you can make a fortune.
            This implies two additional things revo is likely to modest to mention: First, he has superior knowledge of the markets and specific companies due to his extensive experience in the market, broad servicing of clients, and he's extremely smart and knows how to convert that knowledge into a plan. Second, he has the wherewithal - financially and intestinally - to execute that plan. Options trading is not for the feint of heart. Nor is it for the overly machismo; for cashing in at the right time is critical.

            I was with a group of twelve people that did an investment club back in the mid-80s. We did options and stock trading - options contracts back then we bought were in the $500 - 1000 range. We didn't generate anywhere near the great results revo did, but we did come out ahead and at a superior ROR to our stock trades. That said, all of our calculations indicated we should go bullish on technology stocks circa late September, 1987. We just didn't have the guts to do it. Had we done so, it's possible I'd already be retired.
            I'm just here for the baseball.

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            • #36
              Thanks Chance, but you give me too much credit, lol. Yes, I do have almost 30 years (gulp) of Wall Street experience, but it's not like I'm a deep insider. I do all my own homework. That said, my clients are happy.

              Here's two I love that report this week and already own the calls: Rocket Mortgage (RKT) and Docusign (DOCU). RKT should have been a prime recipient of a stellar refi market in Q2, and DOCU should have a primo Q2 due to the work from home bonanza.

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              • #37
                Originally posted by revo View Post
                Thanks Chance, but you give me too much credit, lol. Yes, I do have almost 30 years (gulp) of Wall Street experience, but it's not like I'm a deep insider. I do all my own homework. That said, my clients are happy.
                I suspect your clients are very happy overall, and if I gave too much credit, it was only by a smidge.
                I'm just here for the baseball.

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                • #38
                  And today's a perfect day as to why you don't buy options, lol. Just two days after having the best day I've ever had in the market, I'm having the worst day, lol.

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                  • #39
                    I've dropped down to about 50 percent of my money in the stock market, so I found myself being content with both the boom and bust of the past week.

                    finished 10th in this 37th yr in 11-team-only NL 5x5
                    own picks 1, 2, 5, 6, 9 in April 2022 1st-rd farmhand draft
                    won in 2017 15 07 05 04 02 93 90 84

                    SP SGray 16, TWalker 10, AWood 10, Price 3, KH Kim 2, Corbin 10
                    RP Bednar 10, Bender 10, Graterol 2
                    C Stallings 2, Casali 1
                    1B Votto 10, 3B ERios 2, 1B Zimmerman 2, 2S Chisholm 5, 2B Hoerner 5, 2B Solano 2, 2B LGarcia 10, SS Gregorius 17
                    OF Cain 14, Bader 1, Daza 1

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                    • #40
                      Originally posted by revo View Post
                      And today's a perfect day as to why you don't buy options, lol. Just two days after having the best day I've ever had in the market, I'm having the worst day, lol.
                      Update?

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                      • #41
                        Originally posted by Gregg View Post
                        Update?
                        After that day and a couple of good/bad days, it's been a little better.

                        I would NOT recommend options to any noobs, hard enough for us vets. Problem is that when it turns, your investment goes south quickly. Very quickly.

                        Comment


                        • #42
                          Buy Low, Sell High

                          Not while you are high...while the stock price is high
                          “There’s no normal life, Wyatt, it’s just life. Get on with it.” – Doc Holliday

                          "It doesn't matter what you think" - The Rock

                          "I borked the entry." - Some dude on the Internet

                          Have I told you about otters being the only marine animal that can lift rocks?

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                          • #43
                            Originally posted by Steve 2.0 View Post
                            Buy Low, Sell High

                            Not while you are high...while the stock price is high
                            Dude heh what fun is that?

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                            • #44
                              Originally posted by Gregg View Post
                              Dude heh what fun is that?
                              You wanna have fun or make $
                              “There’s no normal life, Wyatt, it’s just life. Get on with it.” – Doc Holliday

                              "It doesn't matter what you think" - The Rock

                              "I borked the entry." - Some dude on the Internet

                              Have I told you about otters being the only marine animal that can lift rocks?

                              Comment


                              • #45
                                choosing between having fun and making money is like choosing between lobster and cracked crab, why can't everyone have both, like the movie Trading Places. [tropico music playing]

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