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  1. Past hour
  2. Sure.. Happy Holidays!
  3. Today
  4. Oh no! I missed the Dec 15th deadline for Steady Options new members (I'm actually an old member) and wanted to join again but I've been travelling all over and missed it! Please let me know when there is a spot availalble...thanks! and Happy Holidays by the way!
  5. Yesterday
  6. cuegis

    Tradier Brokerage Special Offer

    Using SPY would be one way of a workaround. It has the most liquidity. But, if you are trading larger sizes it isn't cost effective because you have to do 10 to equal 1 SPX. I like using ES because , along with excellent liquidity, I like to have access 23 hours a day. Time = money and opportunity, and 23 hours vs 6 1/2 hours is a real advantage. I don't know if your broker has access to ES and/or if it is live. For some delayed quotes, if you just want to know where the underlying is, as a reference point, you can google up some other sites, like yahoo and others, that will show live quotes so that you at least know what is going on in real time.
  7. Seth H

    Tradier Brokerage Special Offer

    Yes I did specify SPXW. I was able to talk to customer rep. and he said their index data is delayed but option prices are live. But I still don't understand why ETrade can fill the same order for 53.30 credit but the order TradeHawk is sitting there even after I lowered it to 52.5 (and the mid values are not the same even if the rep. says option prices are live) Looks like I should avoid trading indexes on TradeHawk and do SPY only.
  8. cuegis

    Tradier Brokerage Special Offer

    Sometimes you have to specify SPXW from SPX. At least in IB there is a dropdown box where that is done.
  9. Seth H

    Tradier Brokerage Special Offer

    Question to anyone using TradeHawk/Tradier combination: I tried to place SPXW Jan 31 iron butterfly order at the same time for the same strikes in TradeHawk and Etrade and the credit amount was different significantly (51.00 vs 53.30). Then I noticed that SPXW quote on TradeHawk is actually delayed. It doesn't match with the one from ETrade. Then I compared quotes from Yahoo and TradeHawk is really delayed. Then I went ahead and put the same limit order in both accounts and the on Etrade filled for the same credit but the one TradeHawk is not filling even if I lower the amount of credit to 52.5 Anyone noticed this with TradeHawk? It seems like this is the issue with SPX only since I compared other stock quotes and they matched.
  10. Casey

    Close subscription steadyoptions

    Do the quarterly and annual subscriptions still include all 4 services? I.e. including the Steady Options service?
  11. zeon

    Brokers and commissions

    Question I just opened a account with IB does one need to subscribe to OPRA (US Options Exchanges) to get live data that is an extra cost I was not anticpating I don't seem to be getting live quotes on options when I attempt to open an option spread It may be a config issue or do I need to add this to get live option pricing from IB I did try when the market was open as well
  12. Kim

    PayPal billing

    @jung I didn't get your message, but you are fine, no issues with your subscription.
  13. Last week
  14. jordi B

    Close subscription steadyoptions

    I would like to be on the waiting list and be able to participate with you. Thank you very much :-)
  15. jung

    PayPal billing

    I sent message directly to you but I didn't get response yet (Maybe I did something wronge again?? ) I changed email address for some reason and it changed my login ID automatically. My concern is, now it is different than paypal id/email address. I hope it dosen't create any problem for billing. Thanks
  16. Kim

    Close subscription steadyoptions

    Our phenomenal success has resulted in a significant increase in demand for the service, and as such we closed the service to new members. Our performance is based on real fills. We put our money where our mouth is. We execute all trades that we share with members in our personal accounts. Those are live accounts trading real money. If you lose, we lose too. When you profit, we profit too. Our members know that we are committed to provide superior personal service. We personally respond to each email and each forum post. At certain number of members, we will not be able to do it. Also, as our client base grows, we feel that we are fast approaching a point where some of the options we trade do not offer enough liquidity for more subscribers to successfully enter the trades. We would like to continue to maintain this level of customer service and make sure there is enough liquidity for our existing members. To ensure this happens we have decided to close our service to new subscribers. We maintain a waiting list and offer spots as they become available.
  17. Hello good afternoon, First of all apologize for my poor English It has been a long time since I invest in options and I have seen that the yields in stedayoptions are very good. I did not know your website, and when I entered today I saw that they closed the subscription. Do you plan to expand it soon? I arrived late and I would have liked to try it. Thank you very much
  18. Sam Chen

    Using Limit Orders

    Just want to share a bad practice of mine. I set a GTC calendar order according to LULU discussion thread (no trade alert). I re-center this GTC order everyday but I forgot to pay attention to the earning day. It got filled one day after earning and the price dropped very fast because of IV drop (that's also the reason why my order got filled). When I found out, it already had 40% loss. Fortunately it was half position. However, if you only follow trade alert, you should be fine. You are supposed to remove your GTC order when the closing alert is sent.
  19. Kim

    Using Limit Orders

    We are trying to find the best setups at the best possible prices. Overpaying 5-7% on each trade will make a huge difference in the long term. In short term trading, it is even more important. Yes, if we knew that all trades will work and make 20-30%, then overpaying 5-7% makes no difference. But this is not the case. There are losers as well. And some winners are pretty small. Overpaying 5-7% means small winners turn into small losers, and moderate losers turn into bigger losers.
  20. Manish71

    Using Limit Orders

    Hi Kim, There are lot of discussions about not over paying for a trade, setting limit orders etc. But I have had this question for a long time ? * How does it matter even if you chase a price for a trade and pay 2% to 5% more ? For example instead of $1.00 lets say you chase and get filled at $1.05. Now if the trade works in your favour you will still make a profit although a tad bit less. And if the trade goes against you, you will make a tad bit higher loss. It is the 5% more profit or loss, thats it. And you never know even if you had not chased and had been patient and gotten filled at $1.00, are you able to exit at the ideal price ? There are so many variables in the overall profit/loss for so many trades you will take that, don't you think identifying the trade setup is more important ?. Once you are convinced, you can actually chase the price to get filled atleast till 5% to 7% higher ? It should not make a difference in the long run. Getting more winning trades with good R:R is more important and not the filled price which might be 5% or 7% higher even if you chase. Because if you strictly follow the rule of not chasing at all, you will actually miss out on good trades which will actually make more of a difference in your overall P/L and not the 5% to 7% higher price you will have paid for the trades by chasing ? Can you please explain ? Thanks.
  21. Drew Hilleshiem

    How To Start: Options Basics

    In short, options trading and investing has come to the masses; and at times it causes mass confusion. Before you jump in, you should have a strong grasp on the basics. This article is obviously geared towards new options traders but if you’re already swimming, a refresher from time-to-time can be quite useful. WHAT ARE OPTIONS? Equity options are contracts whose value is derived from the value of a specific (called underlying) stock trading in the market. These contracts can be used to profit, leverage, and hedge your position in its underlying stock, based on your belief in the direction of the market and/or how market volatility will behave. An option establishes a right to buy or sell the underlying property. A standard equity option establishes the right to buy or sell 100 shares of the underlying stock at a fixed price before a specific date in the future, known as the expiration date. The expiration date for an option usually occurs in three, six, or nine months. In the United States, options are traded on the Chicago Board Options Exchange, over-the-counter, and on several other exchanges. Don’t worry about using a specific exchange, your broker will take care of that for you. Now that you have a basic definition of what an options contract is, the rest of this article will focus on the difference between calls vs. puts; buying and holding vs. selling and writing; pricing and premiums; type, class, and series of options; opening and closing positions; and, European versus American-style options. Wow, that was a mouthful! THE BASICS OF OPTIONS Calls vs. Puts The right to buy the underlying stock at a fixed price (strike price)before expiration is a call option; the right to sell the underlying stock is a put option. Call options only make financial sense to exercise (i.e., exercise the call buyer's right to purchase the shares) when the price of the stock goes above the strike price of the call while the put options would only be exercised if the price of the stock goes below the strike price. Buying and Holding vs. Selling and Writing The purchaser of an option contract is known as the holder. The holder pays the seller (writer) of the option a premium (at the time of the options trade), which isalso the price for the option. The price, like stock, is what is reported by the exchange as the last price and will vary throughout the day and remaining life of the contract. The buyer, (holder) exercises the option by informing broker, who then informs the writer that she wishes to buy (for a call option) or sell (for a put option) shares of the underlying security at a specified price (strike or exercise price). Options are always described from the standpoint of the holder. The holder has a right to exercise the option while the writer has an obligation to deliver the underlying stock at the specified price, or strike price. A call holder would have a bullish outlook for the market or shares upon which the option was purchased, believing prices are generally going to rise. A put holder has a bearish or contrary outlook of the market. The seller, or writer, of the contract (should) have the opposite view. Pricing and Premiums The exercise price is the set price at which the 100 shares of stock trade will be executed. Exercise (strike) prices are determined by the exchange(s) where the options trade. These strike prices are set at certain standard increments depending on the current price of the underlying stock. Often beginning options traders get confused with the strike price. It’s important to note that the strike prices are not arbitrary and are set for the life of the contract. If the underlying stock is trading at less than $200 per share, the strike prices on the options contract will be set at 5-point intervals. For example, if the stock for FB (Facebook, Inc.) has been trading around $140 to $160/share, there will be puts and calls set at strike price intervals of 140, 145, 150, 155, 160, etc. If the underlying stock is trading over $200 per share, the strike prices of the options contracts will generally be set at 10-point (dollar) intervals. For example, if GOOGL (Alphabet Inc, the parent company of Google) stock has been trading in a range from $1,300 to $1,000 over the past few months, there will be puts and calls on GOOGL at 1030, 1040, 1050, and so on and so forth. The premium is the price buyers pay and sellers receive for the options contracts. Premiums are determined, largely, by supply and demand in an auction market (on the respective exchange) in the same way a stock’s price will fluctuate based on supply and demand in the market.The relationship between the strike price of the option and the market price of the underlying stock is a major one. If the market price is above the strike price, calls at that strike price will have a greater premium than puts at that strike price (this is because the call is considered in-the-money while the put would be out-the-money). Type, Class, and Series of Options There are two types of options; puts are one type and calls are the other type. All calls are one type of option, and all puts are another type. By adding the underlying stock to the type, we get the class of options. All IBM calls are one class; all IBM puts constitute another options class. Once the expiration month added to the class then this establishes the maturity class of an option. All GM JAN(January) calls are one maturity class; all GM JAN puts are another maturity class. Adding the strike (exercise) price to the maturity class gives the series of an option. All XOM (Exxon Mobil Corporation) JAN 75 calls are one series; all XOM JAN75 puts are another series. Once the series is defined, this is the final level of granularity in defining the contract to be traded. Opening and Closing Positions Every beginning options contract position begins with an opening transaction. Whether you write (sell) or hold (buy) the option, you are executing a corresponding ‘opening’. Ex. Buy 1 JAN IBM 120 Call @4.00 = opening buy ($400 + commission paid = total transaction cost) Sell 5 APR MSFT 100 Puts @4.25 = opening sale ($2,125 - commission paid = net proceeds received) A closing transaction takes place when you purchase the same contract at or near expiration to close out your position before an exercise occurs. Ex. Buy 1 JAN IBM 120 Call @ 4.00 = opening buy; Sell 1 JAN IBM 120 Call @8.00 = closing sale Sell 5 APR MSFT 100 Puts @4.25 = opening sale; Buy 5 NOV MSFT 125 Puts @2.00 = closing buy How Many Options Contracts Are There? Unlike stock, the company does not “issue” its options contracts as it would its shares. Rather, the exchange standardizes the classes of options available and the market creates the supply. How, you might ask? The exchange standardizes the series of options available for each class. A new contract is created when a seller initiates an opening transaction. Did you notice that I used the term “write” synonymously with “sell” above? When a contract is “Sold to Open” it creates a contract that can be bought on the exchange. Once the buyer and seller make the deal (via the efficiency of the exchange) a new contract is born and the “Open Interest” of the series will increment by 1 contract. Open interest shows how many contracts are still “active” in the market. Remember, the seller (who has the obligation of the contract) must hold up the terms of the contract or execute a closing transaction to cancel out their obligation. Why bring this up again? Let’s take our initial example and say the series only has an open interest of only 1. In this case, the seller could only close the position if the buyer would sell the contract back. The series is said to be very illiquid in this case. The seller would likely be forced to maintain the obligation throughout the contracts life. On the contrary, if the series had 10,000 open interest then the seller would easily be able to find another seller in order to purchase the closing order and exit the trade. European versus American-style Options Most exchange-listed options in the United States are classified as American-style options, meaning that the contracts may be exercised at any time up to their expiration date. This differs from European-style options, which may only be exercised at expiration. Certain ETFs and index options trade European-style despite being listed on American Exchanges. Understand that the style is very important, especially when writing options contracts. In general, American-style options tend to have higher premiums than European-style because there is more flexibility to exercise the rights of the contract (for the holder) and more risk to be exercised against (for the seller). Remember, it is the seller’s obligation to either deliver 100 shares at the strike price or buy 100 shares from the holder at the strike price depending on the contract type. Have I said this enough times? It’s a very important point. BASIC OPTIONS TRADING SETUPS** or ‘STRATEGIES’ The most basic options strategies involve buying and selling single contracts. For some, this is fine way to trade options. Buying and selling calls and selling puts meets the basic requirements when looking to take advantage of movements in the market. Buying calls or selling puts are a position taken when your outlook is bullish on the market. In the other hand, selling a call or buying a put creates a bearish position. Establishing these positions as a holder gives you a right to purchase the stock at a price lower than what it is currently trading. Writing calls and puts provides premium as income, however, it also inherits an obligation (risk) to deliver (or buy) the stock at a price that is reserved by the holder (repeated once again!). Buying and selling a single contract is the most basic ‘options strategy’ and far from ideal in many circumstances. Most of the trades we use are known as “spreads”, or combinations of puts and calls within the same class. Spreads allow us to control our trading risk and be more strategic; this is why the various spread type is often referred to as the ‘Options Strategy’. I have to note. I’ve never liked the term ‘Options Strategy’ to refer to a spread. A spread can be used strategically, but purchase or sale of a spread does not constitute an options strategy in my book. A strategy must holistically evaluate multiple criteria and be rule-based for entry and exit…but I digress…. For sake of simplicity, and to get your feet wet. Let’s take a closer look at these three ‘strategies’: Example 1: Buy 1 AAPL JAN 170 CALL (Market Price of AAPL $165) @ about $5 In this example, you are bullish on AAPL stock and believe that the market price is going to rise well above the strike price of $170. Currently, the market price of AAPL is $165, meaning that the call is considered out-of-the-money (OTM)by $5. If you were to exercise the option, you would be able to buy the stock for $170 per share. So this trade will only become profitable for you if AAPL rises in prices to above $175/share.At this price the option is now in-the-money(ITM). Why $175/share, you might ask? Above we discussed that it makes financial sense to exercise the call option if the stock is above the strike price? The reason for this, is that you also need to recoup the cost of the premium you paid to the option writer. Here’s an example: Exercise the call at the strike price (170): $170 × 100 = $17,000 Sell the stock in the market at its current price (let’s assume AAPL appreciates to $176 per share prior to January expiration): $176 × 100 = $17,600Difference: $17,600 - $17,000 = $600 Net Profit/Loss (based on $500 in premiums paid): $600 - $500 = $100 Note: You don’t actually need to exercise the stock to profit $100. One of the beautiful features of options is that you would stand to profit about the same if you simply sold the call to someone else. This closes your position and allows you to book your profits. Example 2: Sell 1 AAPL JAN 170 CALL (Market Price of AAPL is $165) @ 5.00 This time, instead of a bullish outlook for AAPL, you feel that the market price is going to drop. You decide that you want to collect premium income by selling a call when the market price is below the strike price. If the market price stays below $170 by January expiration, the call will expire worthless and you as the writer will pocket the $500 in premiums collected. Should the price of the stock go up, you have a $5 cushion to breakeven (exercise price + premium = breakeven) before you lose in this strategy. Notice this is the opposite risk profile of the buyer. Except in this case, your obligation is unlimited. The buyer can only lose the premium paid. The seller is on the hook for much more. Therefore, it’s very important to note that, in theory, AAPL could continue to increase in value endlessly within the expiration period, therefore, this type of trade is not suitable for beginner options traders. In fact, most brokers will not give you permission to execute this type of trade without demonstrating that you have adequate experience and capital. Example 3: Sell 1 AAPL 160 PUT (Market Price of AAPL is $165) @$4.25 Another basic position to take is to sell a put. Where selling a call is bearish, writing puts are considered a bullish strategy as well. If the price remains above the exercise price (165), you will pocket the $425 in premiums received. In a falling market, the holder will ‘put’ the stock to you at $165 as prices fall; your breakeven in this position is the exercise price less the premium you received ($165 - $4.25 = $160.75 breakeven). Other more intermediate/advanced options strategies include covered call writing, vertical spreads, and calendar (time) spreads. This is where we really get to harness the power of options trading. WRAPPING UP Options trading involves risks. You must take on risk to make a profit. However, after reading this article, I hope you have less risk tied to “beginner mistakes” in your initial trading. A sound understand of the mechanics and basics will help you avoid a sticky situation. Your next step is to understand the effects of implied and historical volatility on options pricing before getting your feet wet with very small, risk-defined trades. Happy to answer any questions you have in the comment section below. Drew Hilleshiem is the Co-Founder and CEO of OptionAutomator, an options trading technology startup offering a free options screener that leverages Multi-Criteria Decision Making (MCDM) algorithms to force-rank relevancy of daily options opportunities against user’s individual trading criteria. He is passionate to help close the gap between Wall Street and Main Street with both technology and blogging. You can follow Drew via @OptionAutomator on Twitter. Related articles: Understanding Option Trading Options Strategies: An Introduction Top 10 Options Trading Strategies 10 Basic Facts About Options Trading Beginner's Guide To Options Trading The Life Of An Options Contract 10 Tips: Trade Options Like a Pro and Keep Your Day Job
  22. Kim

    Using Limit Orders

    I don't, but you can definitely try. Looks like an interesting option.
  23. Noah Katz

    Using Limit Orders

    Fair enough, thanks
  24. vasis

    Using Limit Orders

    Hi Kim, What do you think about snap to mid orders available by IB? Do you use them?
  25. Kim

    Using Limit Orders

    Because I see members sharing their fills on the forum. I also try many times to fill few extra contracts after the alert just to check and 90% of the time I'm filled. Also on trades posted by @Yowster I'm in the same shoes as other members. Sometimes I'm filled before the alert based on discussion topic. Sometimes after. And yes in some cases you might have to wait a day or two. Just look at current FB trade as a good example. Some members chased it as high as 1.17, and the next day it was available below 1.10.
  26. Noah Katz

    Using Limit Orders

    How do you know that orders would have actually been filled at whatever paper prices you used for reference? I've many times (though not recently) had orders sit for days and never get filled.
  27. Kim

    Using Limit Orders

    I'm often asked: if the price changed after the trade alert, what should I do? Should I enter at higher price or be patient and use limit orders? I decided to do a little exercise and check our latest trades. Out of 10 current open trades (some are half allocation), ALL of them could be entered at prices lower than the official alert price. Same is true for previous 10 closed trades. NO EXCEPTIONS. Sometimes it took few hours, sometimes you needed to wait for the next day. But eventually a limit order at price equal or lower than the official price would get filled. I think you get the answer. ALWAYS use limit orders. Never chase the price. If in some rare cases the stock moves and you are not filled, so be it. Better to miss a trade than overpay. Also debunks a myth that our performance cannot be replicated. Patience always pays off. And if not always, then 90% of the time.. On a related note, it is usually also possible to enter the trade before the official alert comes out, based on the information in the discussion topic.
  28. In fact, almost every major publication on investing from Business Insider to Forbes to the Wall Street Journal has written pieces on the topic of “people don’t need to pay someone to manage their investments.” (Business Insider, Aug. 12, 2016). The only problem with that is it is bad advice. What is this chart? It’s a study done by Dalbar, Inc., in conjunction with JP Morgan, studying thousands of self-managed investment accounts, as compared to other asset classes from 1998-2017. Notice the worst performing class? The average investor. This is also only the average – meaning that there are substantial numbers of self-managed investors that do much, much, worse. This same study identifies three primary reasons for investor failure: Notice something? Advisory fees are not on there. The single biggest factor is psychological. This can be from risk aversion, which leads to panic selling; narrow framing which results from making investment decisions without looking at the effect on an entire portfolio; anchoring, which is focusing on the recent past; lack of diversification, or not understanding what diversification really is and how market moves effect all of your assets; herding, following what everyone else is doing which often leads to buying high and selling low; regret, which causes individuals to not perform actions necessary due to past failures (or the “make up that loss mentality”); optimism, which leads to making decisions not based in reality; and a host of other factors. As shown above, other things also impact investor performance. For instance, an investor might need a new car, so sells off some of his investments. But did he think about how that would impact his portfolio or returns? Did he make an educated decision in liquidation order? Did he consider taxation or the current market? In short, investors, as a class, are wholly incapable of making regular positive investment decisions for their own benefit. The common response to the above is, “well most advisors rarely beat the indexes, so why pay one?” First, as shown above, the average investor not only doesn’t beat the indexes, they lag substantially behind. But let’s break this down even further. It is almost impossible for most advisors to beat the indexes in any one year. Not because they make poor investment decisions, don’t know what they are doing, or have the same issues as the average investor. Rather it’s because index returns don’t count the following: Taxes – even if it is just from reinvesting dividends in a long term portfolio, taxes will still be a drag on any portfolio that is not reflected in the index an investor may be tracking. If an investor just owned SDY, which has a yield of about 2.5%, and re-invests those dividends, that will act (depending on your tax bracket) as a drag of about 0.5% on your portfolio returns; Transactional Fees – even with the rise in low transaction costs, most accounts still have fees to buy and sell investments. Assume you’re funding your IRA monthly with $458/month so as to max it out by the end of the year. The average transaction cost right now is about $5, meaning you’ll have another 0.1% drag per year, based on transaction costs (and that’s if you can re-invest dividends for free, if you can’t that amount may double); Fund/ETF Costs – ETFs have gotten quite cheap in the last ten years, but it’s rare to find one that is truly free. SPY’s expense ratio is only 0.0945% -- but that is still another ten basis points on which an investor will lag the index. The above three factors alone means any “index” investor will lag the indexes by at least 0.7% per year. Measuring performance against indexes, while helpful, needs to be done with an understanding of the above. So should most people use an advisor? Of course they should. (Note, I did not say all, but rather “most”). Even Vanguard, the king of low cost index investing, is a proponent of advisors. In a study and review of advisors, Vanguard has concluded that a good advisor adds three percent (3.0%) of alpha to the average investor. Notice the biggest value comes from behavioral coaching – which is in line with what Dalbar and JP Morgan found. Conclusion? Don’t believe everything you hear, you can find value in surprising places. Related articles: Why Retail Investors Lose Money In The Stock Market Why Simple Isn’t Easy Thinking In Terms Of Decades Investor Discipline Is The Key To Success Buy High, Sell Low: Why Investors Fail
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