Stock Market Day-Trading Discussion Thread

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Good move. So far based on how market is closing, I say we rally tomorrow. I wanted to sell calls against my calls, but I'm going to milk it one more day...so far so good....



<breathes a sigh of relief>
 
[quote author="upperlowerclass" date=1235539540]Good Finish



<img src="http://www.freeimagehosting.net/uploads/a5746b96e5.jpg" alt="" /></blockquote>


First of all, I'm sorry to hear about the way things went for you today. Secondly, this is not intended to rub salt in any fresh wounds, but based on the size of the loss you had today, it appears that you could use a better risk management strategy. Are you familiar with <a href="http://en.wikipedia.org/wiki/Kelly_criterion">Kelly criterion?</a>



If not, I would suggest becoming familiar with it.
 
[quote author="BlackVault CM" date=1235474518]Right on. I would suggest you pick them up, then at whatever point you decide to sell, just write some calls against it locking in your gains. Then slowly se-saw your way down and let calls absorb the losses. That is my goal, I'm just not getting the pop I need.

When do we do lunch? I owe you one. You said if I lose money, lunch is on you. I didn't...made like 30 bucks (lol), so we have something to work with.</blockquote>
How about lunch next weekend? I work M-F up in Brea and this weekend I'm heading out to Vegas to see my dad.
 
[quote author="usctrojanman29" date=1235623473][quote author="BlackVault CM" date=1235474518]Right on. I would suggest you pick them up, then at whatever point you decide to sell, just write some calls against it locking in your gains. Then slowly se-saw your way down and let calls absorb the losses. That is my goal, I'm just not getting the pop I need.

When do we do lunch? I owe you one. You said if I lose money, lunch is on you. I didn't...made like 30 bucks (lol), so we have something to work with.</blockquote>
How about lunch next weekend? I work M-F up in Brea and this weekend I'm heading out to Vegas to see my dad.</blockquote>


I'll check, and PM you.
 
[quote author="upperlowerclass" date=1235533794][quote author="upperlowerclass" date=1234911524]Heh I scrapped the bottom of the MM account barrel and tossed it in DXO@2... its gambling time</blockquote>


OUT 2.05 I had to move money</blockquote>


OMG kill me now, I sold the only stock I had that would've made me money. It's at 2.42 now, it was just waitin for me to leave.... AAHHHHH!!! I should quit for the week.
 
Cisco calls are doing very well now (close one there).

Oh and I did the unthinkable...I bought Bank of America 10% of my capital too. YEEEEEEHAAAAW! (bought at 5.64)

I'll probably dump by days end. Just trying to snuff a few grand.



EDIT: Only reason why I'm even bothering with BAC is because the past 2 weeks straight, there have been major price discrepencies in the first 20 minutes of trading and sometimes at the end. For example take a look at BAC march $5 strike calls. The stock hit a high of 5.87 and the high for the call was at 1.70, the stock moved down a bit early trading and the call crashed to 1.10 or so. Now the stock is back to 5.83 and the call is trading for 1.33...UMMM>>>>!!!!????!!!!?????!!!!!



Going to take advantage of that. This has been happening day in and day out. Game plan is to sell calls tomorrow morning for like 1.60 if this price holds, then rebuy 30 min later for 1.30 or so.
 
Well... good morning traders, and welcome a 100 point drop courtesy of the US government and Citi. Should be a fun day. Will we break 7000 on the Dow? How about 725 on the S&P? Good times, good times.
 
[quote author="graphrix" date=1235774417]Well... good morning traders, and welcome a 100 point drop courtesy of the US government and Citi. Should be a fun day. Will we break 7000 on the Dow? How about 725 on the S&P? Good times, good times.</blockquote>


Not until we rally first.
 
[quote author="biscuitninja" date=1235785113]Go DOG ! It is my gift that just keeps on giving.



-bix</blockquote>
I'm gonna have to check out that DOG stock. haha Looks like we might be rallying big today. I want a nice huge bear market rally through the end of the summer so I can load up my short positions and put options.
 
[quote author="usctrojanman29" date=1235785369][quote author="biscuitninja" date=1235785113]Go DOG ! It is my gift that just keeps on giving.



-bix</blockquote>
I'm gonna have to check out that DOG stock. haha Looks like we might be rallying big today. I want a nice huge bear market rally through the end of the summer so I can load up my short positions and put options.</blockquote>


I hope you're right, I want to go short so bad, but I know it isn't the right move no matter how much the market is screwing around with my emotions. I'm being stubborn...cost averaging, and in turn placing my portfolio in a vulnerable situation. I've protected 80% of my capital, but 20% can go poof at any moment...the most uncomfortable I've felt in probably 5 years.



I know we will get a rally, but watching capital evaporate at a fast rate makes trading...emotionally hard. MUST FIGHT IT!
 
[quote author="BlackVault CM" date=1235786880][quote author="usctrojanman29" date=1235785369][quote author="biscuitninja" date=1235785113]Go DOG ! It is my gift that just keeps on giving.



-bix</blockquote>
I'm gonna have to check out that DOG stock. haha Looks like we might be rallying big today. I want a nice huge bear market rally through the end of the summer so I can load up my short positions and put options.</blockquote>


I hope you're right, I want to go short so bad, but I know it isn't the right move no matter how much the market is screwing around with my emotions. I'm being stubborn...cost averaging, and in turn placing my portfolio in a vulnerable situation. I've protected 80% of my capital, but 20% can go poof at any moment...the most uncomfortable I've felt in probably 5 years.



I know we will get a rally, but watching capital evaporate at a fast rate makes trading...emotionally hard. MUST FIGHT IT!</blockquote>


My little hedge...



Coo! Coo! GOLD!



<img src="http://i265.photobucket.com/albums/ii224/HerrGrinsch/old_miner_small.gif" alt="" />
 
Just like everybody else, I'm waiting for this rally that never seems to come. I just can't think of what the catalyst might be. Maybe if we had a rush of companies lowering their dividends, it might spark enough of a rally to cause a short covering. It's hard to say.



Sort of bummed out I sold out of my remaing lots of SDS in the mid-$80 range. Left money on the table because I didn't expect this market to head straight down for so long. Not really a complaint. Still banked some nice cheddar.



BlackVault, I'm thinking about grabbing some SRS to take advantage of the commercial real estate fallout, but what does a guy use as a hedge to ensure he's not fleeced in case he's wrong?
 
[quote author="???" date=1235985854]Just like everybody else, I'm waiting for this rally that never seems to come. I just can't think of what the catalyst might be. Maybe if we had a rush of companies lowering their dividends, it might spark enough of a rally to cause a short covering. It's hard to say.



Sort of bummed out I sold out of my remaing lots of SDS in the mid-$80 range. Left money on the table because I didn't expect this market to head straight down for so long. Not really a complaint. Still banked some nice cheddar.



BlackVault, I'm thinking about grabbing some SRS to take advantage of the commercial real estate fallout, but what does a guy use as a hedge to ensure he's not fleeced in case he's wrong?</blockquote>


First I don't recommend you mess around with ETF's, unless you are doing a quick in and out...

If you are doing a quick in and out, why would you need a hedge?



Now if you do plan to engage in the ETF, then the best thing to do is pick up some puts of SRS. At what strike you decide to buy it at, will be determined how much protection you want. I'm not familiar with SRS, however ultra ETF's are broken and lose value over time no matter if you're right...If I was to invest in it, I would be out within a day or two.



If I was to short real-estate I would jump on SPG or SHLD, and once again use puts as a hedge and make it delta neutral if you want perfect protection to the downside.



How to make it delta neutral for a perfect hedge? If you own 100 shares of XXXX it would have a delta of 1.0 (equities always have a delta of 1.0), then lets say XXXX has a derivative at X strike price with a delta of 0.50 (that means for each dollar XXXX moves, the derivative will move half of it giving you half the protection) so you will need 2 option contracts to cover the 100 shares for a perfect hedge.



But the market has gone down quite a bit, I would wait a pull back before you jump on the short train again.
 
Watching BofA tomorrow will be fascinating. I'm down -21% on it, lol...



Some interesting developments on finance sector. IRA indicated that BofA got an A on the stress test and is nowhere near Citi's situation. BofA was pretty much thrown in the same category as Citi, but IRA indicated that BofA got an A on their stress test and is nowhere near Citi's situation.



Asian markets are down big too, US futures down as well. Maybe we will get that 500 pt drop, and the washout i'm looking for.
 
[quote author="BlackVault CM" date=1235988849][quote author="???" date=1235985854]Just like everybody else, I'm waiting for this rally that never seems to come. I just can't think of what the catalyst might be. Maybe if we had a rush of companies lowering their dividends, it might spark enough of a rally to cause a short covering. It's hard to say.



Sort of bummed out I sold out of my remaing lots of SDS in the mid-$80 range. Left money on the table because I didn't expect this market to head straight down for so long. Not really a complaint. Still banked some nice cheddar.



BlackVault, I'm thinking about grabbing some SRS to take advantage of the commercial real estate fallout, but what does a guy use as a hedge to ensure he's not fleeced in case he's wrong?</blockquote>


First I don't recommend you mess around with ETF's, unless you are doing a quick in and out...

If you are doing a quick in and out, why would you need a hedge?



Now if you do plan to engage in the ETF, then the best thing to do is pick up some puts of SRS. At what strike you decide to buy it at, will be determined how much protection you want. I'm not familiar with SRS, however ultra ETF's are broken and lose value over time no matter if you're right...If I was to invest in it, I would be out within a day or two.



If I was to short real-estate I would jump on SPG or SHLD, and once again use puts as a hedge and make it delta neutral if you want perfect protection to the downside.



How to make it delta neutral for a perfect hedge? If you own 100 shares of XXXX it would have a delta of 1.0 (equities always have a delta of 1.0), then lets say XXXX has a derivative at X strike price with a delta of 0.50 (that means for each dollar XXXX moves, the derivative will move half of it giving you half the protection) so you will need 2 option contracts to cover the 100 shares for a perfect hedge.



But the market has gone down quite a bit, I would wait a pull back before you jump on the short train again.</blockquote>


Thanks. And we can't wait until you're ready with the new .com site. Best regards.
 
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