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Yes I think nucular physics sounds interesting too
Oh, do you not understand vertical spread? It's often used as a bull call. You buy a open call on the money and then you sell an open call at a higher price, out of money at the same time for the same expiration date for the same stock. The downside is that it limits you profit if the stock goes through the roof, but at the same time, it limit your loss to the debit amount, the difference between the call and the spread if the stock tanks.
Oh, do you not understand vertical spread? It's often used as a bull call. You buy a open call on the money and then you sell an open call at a higher price, out of money at the same time for the same expiration date for the same stock. The downside is that it limits you profit if the stock goes through the roof, but at the same time, it limit your loss to the debit amount, the difference between the call and the spread if the stock tanks.
No I understand options trading and didn't have to google vertical spreads to find out like you had to do. No one who understands options trading and has educated themselves beyond google master would never say "buy a open call" or "on the money" lulz at you trying to give the education
No I understand options trading and didn't have to google vertical spreads to find out like you had to do. No one who understands options trading and has educated themselves beyond google master would never say "buy a open call" or "on the money" lulz at you trying to give the education
Oh, if you still don't understand it, you should read a book or two.
It is a simple strangle with the max loss @ 90 dollars per contract. If you're happy with the risk/reward I am too.
I would be inclined to look at a condor if I had a target in mind for the underlying.
I'm no expert on options although I have studied them quite a bit. I decided options are too long term for my personality. I can't go to bed with a position on.
What Wartrace said. Except the last part - I am the polar opposite, never day-traded in my life.
OP - you are basically gambling that either due to overall high volatility or GE-specific factors, GE stock will NOT trade in a range, but will either tank (so your put is ITM) or soar (call is ITM). So my question is, why GE? Why not some more volatile stock? In this case volatility is your friend.
Anyway it's all gambling. Look back on significant events of 2014 that affected the stock market, and see if anyone predicted them. It's useless to predict short-term direction. Go ahead and gamble but don't dignify it with the term "strategy".
I'd love to hear an update on how these strategies worked out.
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