3 ms·

Stocks returns are low, look into options if you have risk tolerance.

by marketgod 8y ago

icedchai 8y ago
Any strategies you recommend? I'm open to putting a small percentage towards riskier stuff.
- marketgod 8y ago
  There seems to be a trend lately with many tech employees asking what to do. I was really thinking of creating a service to tell you when to buy and maybe sell, or when I sell. I use volume patterns, chart patterns to get in and out. The big thing is time. Being able to get in and out of options requires time and being at the screen. Hard to do when you are not there. One thing I have noticed, chasing dips is hard, look for breakouts it's easier.
- marketgod 8y ago
  I just re-read your message and thought of something with regards to the 30 stocks you are playing with. Suppose you have $10,000 in AAPL for 52 shares. You can buy AAPL Jan 2019 195.000 call for $1170 for 1 contract. Now suppose you plug this option in here, http://www.optionsprofitcalculator.com/calculator/long-call.html http://www.optionsprofitcalculator.com/calculator/long-call.... and you will see if AAPL goes to $200 for July 28th you would be 30% in profits whereas your shares would only return $8/$192. You can also buy puts when you think it's too high instead of selling the contracts so this way you can arbitrage. This might work for you as well, http://www.theoptionsguide.com/long-straddle.aspx http://www.theoptionsguide.com/long-straddle.aspx Edit: You can also sell puts every week for the shares you hold and just collect premiums instead of holding dividend paying stocks.
  - icedchai 8y ago
    Cool! Thanks! I will look into this more. I know there is big $$$ in options but it has always struck me as risky... I know, risk vs reward...
    - marketgod 8y ago
      I just posted a thread, maybe you have some insight, not sure if this is allowed on here: https://news.ycombinator.com/item?id=17270396 https://news.ycombinator.com/item?id=17270396

Stocks returns are low, look into options if you have risk tolerance.

icedchai 8y ago

Any strategies you recommend? I'm open to putting a small percentage towards riskier stuff.

marketgod 8y ago
There seems to be a trend lately with many tech employees asking what to do. I was really thinking of creating a service to tell you when to buy and maybe sell, or when I sell. I use volume patterns, chart patterns to get in and out. The big thing is time. Being able to get in and out of options requires time and being at the screen. Hard to do when you are not there. One thing I have noticed, chasing dips is hard, look for breakouts it's easier.
marketgod 8y ago
I just re-read your message and thought of something with regards to the 30 stocks you are playing with. Suppose you have $10,000 in AAPL for 52 shares. You can buy AAPL Jan 2019 195.000 call for $1170 for 1 contract. Now suppose you plug this option in here, http://www.optionsprofitcalculator.com/calculator/long-call.html http://www.optionsprofitcalculator.com/calculator/long-call.... and you will see if AAPL goes to $200 for July 28th you would be 30% in profits whereas your shares would only return $8/$192. You can also buy puts when you think it's too high instead of selling the contracts so this way you can arbitrage. This might work for you as well, http://www.theoptionsguide.com/long-straddle.aspx http://www.theoptionsguide.com/long-straddle.aspx Edit: You can also sell puts every week for the shares you hold and just collect premiums instead of holding dividend paying stocks.
- icedchai 8y ago
  Cool! Thanks! I will look into this more. I know there is big $$$ in options but it has always struck me as risky... I know, risk vs reward...
  - marketgod 8y ago
    I just posted a thread, maybe you have some insight, not sure if this is allowed on here: https://news.ycombinator.com/item?id=17270396 https://news.ycombinator.com/item?id=17270396