Option trading reddit. Here are a few more examples.
Option trading reddit "My experience trading options" is not the same as "my experience gambling on options". With volatile stocks, option buyers will pay more because there’s a better chance an option can go deep(er) ITM, and option sellers will want more premium for the risk. Options approval decisions are based on your trading experience (including experience trading stocks/ETFs, mutual funds, bonds, etc. My research into options seems to me to be a pretty good blend of things I like about swing-trading and long holds. I recently started trading options because I can limit the amount of cash I’m investing. With a stock, you’re paying full price per share. Do not trade too many stocks at the same time Know your charges very well — The taxes, the brokerage, etc Posted by u/srtpg2 - No votes and no comments The name of the video on youtube: Stock Options Trading 101 [The ULTIMATE Beginner's Guide] Channels: projectfinance, Sky View Trading, TheChartGuus, and Option Alpha - are all very good. Only regarding writing uncovered contracts. Context and effort in your post is required to communicate well. 09 (£80) or have spent $8. I'm moreso reevaluating my trading strategy/style with tax liability in mind. European (Styled) Options means you CAN NOT EXERCISE EARLY. Long call spreads and long put spreads are debit spreads because the long options are worth more than the short option that’s sold against it to reduce the cost basis. This is a financial options trading subreddit. If you trade index or commodity options (or the contracts themselves) then 60% of any gain is treated as long-term and taxed at the lower long-term rates. This post is a great example of what "targeted marketing" looks like. The Only I use available strategy from my options trading tool box, for a spread trade, based on my trade plan Risk Buying power reduction . Supporting documentation for any claims, if applicable, will be furnished upon request. Covered Calls for Beginners: A Risk-Free Way to Collect Rental Income Every Single Month on Stocks You Already Own 12. Options can be worth it, but it is a huge learning curve. Lets you screen for options you want to open positions on. Id say no, option trading is very different from regular investing or short term trading. I started trading options with actual money May of 2017. Here are a few more examples. If you buy, for example, a covered call option you can only lose the contract premium. "think like an option trader" it explains how to think through the logic of a trade, assess the situation of the stock, its iv, skew an greeks and how to analyze an trade in the context of the greeks, time, iv, moneyness and more. Starting off by selling options and learning to sell cash secured puts and covered calls. Glad the ability to do it is coming, guess I’m taking a subject matter course, to utilize the small number of opportunities options in theory made sense to me. Understanding the "Greeks" is crucial for any options trader, and Passarelli's book provides a clear guide to how these factors—delta, gamma, theta, vega, and rho—affect options pricing and trading strategies. But, for a knowledgable, experienced, and skilled trader with a solid trading plan, it is most certainly not gambling! My point here is that there is no way to remove the gambling aspect from ER trades which you can do from non-ER trades. com, a trading forum run by professional traders. Let's Talk About: Exchange Traded Financial Options -- Options Fundamentals -- The Greeks -- Strategies -- Current Plays and Ideas -- Q&A -- **New Traders**: See the Options Questions Safe Haven weekly thread As you get more experience, and develop an even better trading plan, you may be able to bring in a higher percentage return. So naturally the price of options on those stocks are relatively high, and that increased price is measured by IV. You’re so limited in what you can do without a decent amount of capital, and you really can’t isolate volatility trading without the ability to delta hedge your position (so you need more $$ for Probably people think options are gambling, check out Delta 1. Don't trade thinking only about the case where things go in your favor, and especially don't consider only a subset of downsides that you're comfortable with. I have been trading options for several years and started with futures over the past year. Understanding Options 14. I was pretty annoyed by that. It is a guide on how to start options trading from the UK. 50 for opening a contract, and closing is free. I've been going through indicators and I have some that work decently but none that I really like. 0 to $200. I trade much more conservative than average guy or at least I think. Some of the best scalpers over the years have given up scalping to actually hold their positions for as long as an hour. 01 (£5. I’m retiring soon from my current job and Im pondering with the idea of getting an easier job and continue swing trade. I learned option basics from tasty trade but I couldn't find any good material to get from options rookie to option veteran. - I make 300-500 daily scalping . Looking for Pros and Cons on the different options trading sites. OK. I trade options professionally and I personally wouldn’t consider trading options independently without having at least $250-500k to do so. ) financial situation, and investment objective. Hence, adequate knowledge and experience are crucial before delving into options trading. Been options trading for a year, profitable the last 6 months Understanding the "Greeks" is crucial for any options trader, and Passarelli's book provides a clear guide to how these factors—delta, gamma, theta, vega, and rho—affect options pricing and trading strategies. Some options traders can reach 100%, but this is rare. There are too many factors without knowing what you want to do with the options. I have other posts that deal with Option Strategies, but this one is primarily for those that wanted to get a base understanding of the instrument from the beginning. Don’t buy contracts that expire in a week or less. by number of daily average revenue trades. Hello! As the title suggests, I’m looking to see what you all suggest for options trading in Canada since a lot of the usual suggestions are best suited for American investors and it is really difficult for a Canadian to sign up. With markets closed today, I figured I'd sit down and take my time to share some of my tips for (options) day-traders. Charting and indicators are limited, however. And GO! Webull is honestly a fantastic product for being free and charging no commission. We are a communal resource for teaching all aspects of investing and personal financial growth. The UI allows for efficient entry, exit, and rolling of positions. How to Trade Options: Day Trading Strategies 15. This happens with VIX a lot. provided one knows how to trade or play options, then the trader should have a trading capital large enough to generate a decent income with 1 or 2 percent returns. My favorite options specific podcast is The Modern Stock and Option Trading Show with Russ Mathews. 2 days ago · Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $95. It does NOT mean the option originate/sold/from Europe or America (A lot of people have this confusion because of the names of the option style). 50 (position doesn't make or lose money if the stock goes up or down). I keep notes as I trade so I thought I'd share some of the lessons I learned along the way, going from noob to an intermediate level. , I think MM would be a better "role-model" for most people than those other firms. A place for high quality community conversation and learning surrounding exchange traded financial options, and associated markets. "Understanding Options" by Michael PDT is a bitch under 25k but you can a still execute 3 day trades every rolling 7 day period, you can swing trade and you have options trading while you build your account. Get the Reddit app Scan this QR code to download the app now Blew up my account less than 2 weeks after getting back into trading options after having about an 80 If you trade like an algo, for example if you just scalp, use fixed stop/profit target, or trade breakouts, you're going to have a bad time. So it’s not buying options that’s hurting you, it’s trading a directional strategy and not being accurate at it. Fridays are for buying, M-W are for selling. The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies 11. Volume & Open Oct 13, 2023 · Whether you’re a futures trader or an options aficionado, r/SwingTrading caters to traders of all stripes, offering a platform to dissect market trends, explore high-potential trading setups, and delve into the nitty-gritty of risk management techniques. If you expect a stock's price to fall, put options let you sell it at today's price, even if it drops later. However, I recently came across some comments on Reddit suggesting that WS may not be the suitable platform for options trading due to concerns about stability and etc For options trading, Tastytrade has the best trading platform and fees in the market. People get drawn to options like moths to a flame because of the potential for giant returns. Or go full time trading 9/5. I usually look for up to 99 dte, otm, put, with at least . Mainly I've attempted this with 0dte SPY options, but I have also traded in a few highly liquid tickers also, but always as low a dte as I can get. Some Cool Option Trading Strategies This community was founded to teach others about realistic and responsible options trading. Good luck! High - Highest price paid during the trading day for the option Low - Lowest price paid during the trading day for the option Volume - number of contracts traded during the trading day Open Interest - number of total contracts not settled Bid-Ask Spread is the different between the Bid and Ask, in this case $. Because different options trading strategies involve varying degrees of risk, approval requirements are more rigorous for higher options levels approval. I do like the paper trading side and educational webinars. Virtual Trade: Virtual Trade is a free, web-based options trading simulator that allows you to practice options trading without risking any real money. One drawback is that it lacks price alerts. The main advantage I can think of is that you can trade on international exchanges with little fuss, if that's important to you. "Understanding Options" by Michael . I would say the desktop platform is not suited for beginners, but the mobile platform is very user-friendly. 34K subscribers in the OptionsMillionaire community. Put Options: The opposite of call options. I have working on a similar strategy trading ES futures and options. The downsides are that they do not yet support level 4+ options trading (naked puts/calls, straddles, strangles), they don't let you create custom width iron condors (you have to place two separate credit spread orders), you can't place multiple option orders at once and their greek data is often inaccurate or Avoid options with a wide spread, bid and ask should be 1/2% difference or less. 5% a month and 18% annually, which is excellent by any standards. CFDs vs. "trading option greeks. 80 % of spreads lose - delta neutral is more to protect an equity position - straddles can be good for a heavy moves . Everything from the post itself to the bots in the comments section asking predetermined questions for OP to answer and elaborate on is designed to fool you into thinking these are real ppl acting organically. , specific delta, do you use studies on the stock to find a setup and trade options off that? I would like to know what y'all do. Welcome to FXGears. Buying an uncovered put option for example has unlimited risk. Without a solid understanding of how options work, beginners can easily lose their entire investment or be exposed to unlimited risk. r/options_trading: Welcome to r/Options_Trading! This is a subreddit for all traders to discuss, ask questions, and share trade ideas related to… Option buying or selling isn’t inherently profitable - this is one of the largest misconceptions about options. Symmetrically, since you get to choose whether you want to exercise the option, the seller must fulfill the demands of the buyer. Just be patient and do your homework and you'll get there. I do use TOS for charting and intraday trading stocks. It's $1 round trip which you pay when you open the trade. First I’ve been trading options for twenty years so I don’t need to hear anything from you. I see people comparing future dated VIX options with the current VIX price, but that is not how VIX options actually work. It's a screener. 10. I grew up with Tastyworks and watching Tasty Trade. Oct 12, 2024 · I've spent the last ~6 months day trading 0-4dte options, basically buying calls or puts and attempting to quickly scalp out some profit. Every tool has its nuances, so personal experience often speaks volumes. Call options, or just "calls," allow the holder to buy at the pre-determined price and are the options equivalent to simply buying or longing the underlying stock. I just don't have experience with others. stock, indices, currency, commodities. The risk is infinite when you are writing contracts or buying uncovered contracts. And GO! Avoid options with a wide spread, bid and ask should be 1/2% difference or less. Ngl it reminds me of if fidelity and robinhood had a baby, you’d have sofi. What about the other end of the transaction? If you buy an option, someone has to sell it to you. All of them have pros and cons. Risk Management: Skilled options traders employ various risk management strategies to minimize potential losses and protect their capital. As a long trader, if there's a strategy that works for me, where I can also limit my tax liability, then I may go for it. Options price data will sometime stop streaming for a particular ticker and I have to restart or click to another menu and back to trigger it. Step 1 - Identify an optionable stock you'd like to hold long-term and purchase 100 shares (100 is minimum required to "sell" options contracts). Buttons will sometimes stop working. Options let me buy and sell stock that is otherwise priced way out of my league. So Gambling. Starting small and scaling up as you review and revise your plan is a good idea. Here… CBOE OPTION SCHOOL - FREE TASTY TRADE OPTION SCHOOL - FREE OPTION ALPHA VIDEOS - FREE PERUSE VIDEOS/PRESENTATIONS @ OIC/OCC - FREE Re options and value theme, there is one book that tries to cover both angles - INTELLIGENT OPTION INVESTOR . I'm hoping to connect with someone within the Reddit community who is genuinely passionate about this field and eager to learn and grow. Smart boomers are using options also. What I have seen is probably RH. If you're considering an AI trading tool, I'd suggest testing it out firsthand, maybe through a trial period if offered. Hello! 😊 I'm on the lookout for recommendations on where to post a job listing for a part-time assistant to assist with market research and trade execution, particularly in the realm of options trading. what is your favorite indicator or study you use to find options plays? Do you scan for heightened vol. **Naked puts & Calls**, **Delta Neutral**, Selling Vega, Buying Gamma, Iron Condors, Verticle and Calendar spreads, Covered Calls and technical analysis involving option trades. Not having a position is a position. I'm a long trader, and use my options as future entry points. You would have to consider what you are doing with the options. " Common mistakes and useful advice for new options traders • Five mistakes to avoid when trading options (Options Playbook) • Top 10 Mistakes Beginner Option Traders Make (Ally Bank) • One year into options trading: lessons learned (whitethunder9) • Here's some cold hard words from a professional trader (magik_moose) Options trading is particularly risky for beginners due to its complexity and the high risk of loss. You see them most often on the penny stock subs. g. I currently invest using Wealthsimple, but they don’t offer options trading. Some Cool Option Trading Strategies From historical option price (I only trade AMD options so after many sessions I kinda get the hang of its flow - or so I thought), I deduce that if I start buying when either puts/calls reach 50% of its session high, then averaging down anytime the option drop a further 10%, my risks would be minimized and the success rate would be very high. e. For those who do not have a solid trading plan and are just winging it then it may be gambling. It is often best known for its trader workstation, API's, and low margins. MANAGEMENT DIFFERENCE After seeing many questions and comments on trading VIX options, I thought it would make sense to clarify things. Certain complex options strategies carry additional risk. If you buy the option now you can buy the toy for $120. Options/CFD trading is a high-risk activity and most retail traders lose money. 19. Also I don't really like the way that TastyTrade's trade style is. Options So getting started, options and contracts for difference (CFDs) are both financial derivatives - they derive their values from an underlying security e. Starting at episode one, he starts at the very beginning level, and talks different strategies from there. I have yet to sell-on an option I've bought - I've exercised everything. In fact, Robinhood makes nearly double from option trading as it does from equity trading on the site, despite options being a much smaller proportion of the overall activity of their customers. I have been options trading for about a year and so far have made more profit than losses. If youre buying options, you’re likely trading directionally, and not doing well at it. Share your trade ideas, strategies or commentary on the options derivative market. It… Options trading entails significant risk and is not appropriate for all investors. Sometimes I use swing trade bot to look at signals that can help but they have so many different signals to use I don’t know which one is the best. It's an excellent resource for getting to grips with the quantitative aspects of options trading. You know boomers that own 100s of shares of Aapl, Msft, Axp, Amzn etc. Positional Option Trading: An Advanced Guide 13. com's Reddit Forex Trading Community! Here you can converse about trading ideas, strategies, trading psychology, and nearly everything in between! ---- We also have one of the largest forex chatrooms online! ---- /r/Forex is the official subreddit of FXGears. Thanks for your input! Trading Options at Expiration by Augen and Trading Options on Corporate Earnings News by Shon and Zhou are both a bit dated but good to read through once. rather than just trading directionally. The most important thing to learn is risk management. . Trading Options Greeks by Dan Passarelli was a book I found to be very helpful jn understanding how the greeks work and affect options pricing. Most of the time, do not take that trade. etc ) Underlines' Option Greeks are aligned? Delta neutral: about 0. There are two types of options that you can trade, which are call options and put options. Before trading options, please read the Characteristics and Risks of Standardized Options. Format: SYMBOL , trade price (debit I paid to open the position), date/time opened Welcome to FXGears. He also goes over example trades and how they could play out. " A lot of commodity traders use TA. The latter basically gives you the insight that price moves correspond with earnings news less than half the time (eg. Patient: “Doctor, it hurts when I raise my arm. If you're someone who sells options and lets them expire, another platform that charges you 60 cents per leg would be cheaper in the long run, but I'd still choose tasty due to the analysis tab functionality. Gives good real world examples too. "Tldr; Its not worth it. Option fees are $1. Anxiety/Nervousness, is a factor when you aren't capitalized properly or are taking on greater than capital allows risk. While Options have many purposes, the primary purpose of using Options to Day Trade is - leverage. That's 1. not a bad book at all, is additive to the discussion and not overly academic. However, for the most part, on a "day-trader" basis, and particularly for trading options (like MMs would constantly) that is not necessary. The company brokers stocks, options, futures, EFPs, futures options, forex, bonds, and funds. Only CLDR was opened such that exercise would make me lose money. Wait till you find the right trade, and be aggressive about it Keep taking breaks from trading. American (styled) Options means the buyer(s) can exercise the contract ANY TIME they want. I've been actively trading in both the Canadian and US markets using WS, and I'm now considering venturing into options trading. Options are great for no PDT, just higher risk so just be disciplined disciplined disciplined with your homework. Think about it for a minute: the market makers are making enough off of executing your orders that they pay Robinhood a sizable chunk just to receive them. Honestly i've been in so many groups since 2016 and got myself confused with people messing around but i was looking for serious groups of traders , here is the perfect place i've been here for years learned alot not just trading options and futures but also economics of market understanding different trading strategies if you want to learn and community this is the place In a debit spread, the long option costs more (premium to buy) than the short option (premium received from selling) therefore, the net premium is a debit. It operates the largest electronic trading platform in the U. 09 (£75) at Christmas if it becomes cool or if it is uncool you do not use the option and your cost to date is $8. 01 (£5) avoiding getting an uncool toy. ) You now have either a cool toy for $128. Selling covered calls on shares is probably one of the lowest risk ways to add return to a portfolio of buy and hold for years. Many people blow their accounts trading options. While chance plays a role in both gambling and trading, options traders have the ability to research and evaluate information that can potentially increase their chances of success. You cannot trade the VIX itself, but you can trade /VX futures, which is what the VIX options are priced off of. Transparency in sharing trade perspectives and outcomes is crucial in this realm. I have found it super informative. controlling emotions is the hard part, because when you're trading stocks losses are generally small, but with options the emotions are raised by 10x because when you do lose money it goes extremely quickly, i've lost half my portfolio in one day before and rocketed Do not trade all the time. 5 on the bid, sorted by highest yearly return and a strike less than 7 to see what I might want to sell puts on. Before trading learn exactly how much you stand to lose, and if it's too much consider ways you can protect your position. I’m pretty good at being disciplined in my options trading but the hard part is always trying to choose which stock to trade and I’m which direction. I have a lot to learn, but in the meantime I don’t make any trades that expose me to significant losses. ” Covered Call Strategy is one of my personal favorites and highlights the risk-hedge aspect of options trading. Most who make an income from trading do so by being net sellers. Best wishes in your trading journey! Thus, if the extent of your understanding is, "Use a Call when you think it is going up and a Put when you think it will go down" you should probably skip the rest of this and learn the mechanics of Option Trading first. Some basic rules I came up with that have been game changers for my options trading. But if you’re invested in options, the most you can lose is the cost of the option you paid (there are plays which could theoretically cause infinite gains/losses, but for the sake of my point we’ll keep things simple). I have been using TDA Think or Swim Web version. And if your options income is big compared to your salary you should pay quarterly estimates to the IRS to avoid penalties. It has morphed into a safe haven for those that desire to learn investing free of nonsense, yolos, lottos, drama and all/any other irresponsible behavior that is inherent in most online communities. I have come to the conclusion that options are going to be my primary and futures are used in specific directional and high probability scenarios. Thank you for the thoughtful response. It is the best way to start. It… You go to account management and then trading permissions (on the website not TWS or your phone) and then you can either attest to having like 2-3 years experience in trading options (I think that's the amount of time they're aiming for) or you do a short quiz on the risks of buying and selling standardized options and you need to pass it to Looking for Pros and Cons on the different options trading sites. Your answer gave some great insights about trading i. Slightly longer version follows. I've also used Schwab, Fidelity, and TOS for options. This option gives the holder the right to buy 100 shares of Tesla at $900, on or before March 18, 2021. And the problem with joining groups, as someone who joined many groups before I got good at trading on my own, is that you are basically taking other ppls plays without knowing what they’re trading plan is Hello, I’m a new to the Options Trading and what’s wild is I got into Reddit in 2020 (my account started) and I wanted to Primarily focused on trading, i heard and seen the success - I wanted to get into it and bring my family generational wealth and so on…but with everything going on in my life I stuck with what I only knew, going to college and playing football. Else the pshycological pressure is so fierce that with a Welcome to FXGears. 0 for Reddit over the recent three months. And if the company ever goes bankrupt and the stock goes to 0, then you lose it all. Options can be used for Day Trading, Swing Trading and even long-term Investments. With calls the price can only drop to $0 giving a limit to yo Welcome to FXGears. Welcome Call Options: Think of these like a VIP pass to buy stocks at a bargain. Options were originally invented to hedge risk. 818 votes, 152 comments. If you think the stock's price will go up, you get a call option to buy it cheaper later. I have casually traded stocks for 5 years, recently delving further into swing-trading and having modest success doing so. Interested in your thoughts and criticisms. Been options trading for a year, profitable the last 6 months PDT is a bitch under 25k but you can a still execute 3 day trades every rolling 7 day period, you can swing trade and you have options trading while you build your account. S. If you're a beginner, however, maybe swing/day trading is da wea before you jump into options? Thanks for the in depth input. Nov 1, 2024 · You can get started trading options by opening an account, choosing to buy or sell puts or calls, and choosing an appropriate strike price and timeframe. the smart and rich ones have owned them for decades and don't want to sell them because of their crazy low cost You probably don't need to worry if your options income is small. The Tastyworks mobile and desktop platforms are great for options. Sit on the sidelines and watch. True, I think the real money losing part about options is not the knowledge, understanding option fundamentals is the easy part. These are basics of Option Trading. There are times I’ve wanted to trade options, but not had them available as an option, but I also knew I don’t understand them well enough to fully know what I’m doing. Call Options: Think of these like a VIP pass to buy stocks at a bargain. If we're focusing on option trading as a whole, instead of trading commodities etc. Sofi actually started having options trading available but it’s only level 2 (buy and sell options, no strategies) I was looking for a new platform that had instant buying power (that wasn’t robinhood) and I came across Sofi just cause so many people talked about it. This community was founded to teach others about realistic and responsible options trading. more likely to drop after good earnings news). The platform includes a wide range of options trading tools and features, including the ability to create and test options spreads. vgek vphci zde tsiron rplthcp utv xxcf kyuvgsa ynjnth gffuflk