2014 Trading Thread - Page 4 - Business, Finances and Investing Forum

I tried that calculator and keep getting an error, even with different inputs on both SPX and SPY options: COMM1059 No records found for entered filter criteria

I tried making my own models in excel based on empirical data, but I see my margin used increased by $27k overnight even though the market hardly moved yesterday and I am not sure why.
I did something dangerous writing too many options, will have to close some of these up if I can't figure out how and why the margin use fluctuates.

I am going to read the handbook.

Check and see if your broker changed any of the margin requirements on any of your particular holdings.

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01-05-2014 , 04:29 PM

#78

jb514

veteran

Join Date: Oct 2009 Posts: 2,837

Here's a blog I've been watching for a while which has quite a few swing trade ideas. It's almost entirely small/microcap which is a + in my book since I feel like it's a space that gets ignored by the bigger money and smarter players, giving room for us little guys to have an edge.

http://www.tradeonthefly.com/

She's pretty well known in the chatrooms and it sounds like she does pretty well for herself. Most of the trading lately has been long biased breakouts, and is pretty much 100% technical.

ACFN and CYTK look pretty interesting definitely going to be watching on monday.

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01-05-2014 , 06:03 PM

#79

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by DKay

Check and see if your broker changed any of the margin requirements on any of your particular holdings.

Brokerages can be more strict than the rules, but I doubt that is the case here. Portfolio margin requirement are already pretty strict.

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01-06-2014 , 12:04 AM

#80

BigBiceps

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Join Date: Mar 2004 Posts: 6,205

The out of the money options at strike prices are 50x my account size.
Some of the SPX strangles increased between 1.25 and 3x the amount of margin occupied, between Friday when opening the position and Friday midnight when the OCC recomputes.

I am not totally comfortable with these positions and will scale down some, or hedge some as the premium is not worth going bankrupt if a nuclear bomb or something hits. Better to close some on my own rather than being forced to if the margin increases unexpectedly.

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01-06-2014 , 12:08 AM

#81

SuperWhale

adept

Join Date: Feb 2007 Posts: 1,075

Quote:

Originally Posted by BigBiceps

Which expiration?

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01-06-2014 , 12:19 AM

#82

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

As a general rule there is a huge drop in IV Friday to Monday. That should allow you to get out of your short option positions without too much pain.

Still, JFC... You really shouldn't be taking on that much risk. Portfolio margin is calculated on a 15% move in the underlying! "I was rich for a while when things went my way" is a ****ty story. Please tell me you understand what I am saying.

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01-06-2014 , 12:21 AM

#83

savant111

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Join Date: Nov 2008 Posts: 3,101

Quote:

Originally Posted by jb514

CYTK set up looks interesting. Company losses a ton of money though. Do you know anything about their pipeline or fundamental catalysts?

Edit: management talking about catalysts: http://seekingalpha.com/article/1874...t?source=yahoo

Last edited by savant111; 01-06-2014 at 12:27 AM.

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01-06-2014 , 01:01 AM

#84

jb514

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Join Date: Oct 2009 Posts: 2,837

Don't really know anything about them. I recently found this site http://www.biopharmcatalyst.com/fda-calendar/ which has a lot of links to stuff like press releases.

I don't really like having to follow the fundamentals of these turds(or really anything), so I think cutting down size in bios is a decent hedge.

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01-06-2014 , 02:31 AM

#85

homeboy604

veteran

Join Date: Jul 2006 Posts: 3,360

Quote:

Originally Posted by jb514

thanks for posting that blog. got a few ideas off of it.
i thought it was this one which i follow:
http://ibankcoin.com/flyblog/
pretty entertaining read and hes got a few actionable ideas a day.

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01-06-2014 , 02:36 AM

#86

homeboy604

veteran

Join Date: Jul 2006 Posts: 3,360

This is my watchlist for tomorrow:
PGTI
RBCN
X
VRX
ALGN
CMG
ACT
WUBA
CPA
FONR
GMCR
OZM
YOKU
QUNR
AAPL
ATVI
CUZ
STWD
FINL
SFUN
ITT
XONE
VJET
VEEV
RLD
CYTK

hoping for a breakout in C. looking to add to LUV and maybe buy another airline. hoping KNDI sticks to a consolidating pattern or blasts off. continuation in solars would be nice too. huge run to start the year for them. looking at zone and vjet for some momo.
gl tomorrow

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01-06-2014 , 02:38 AM

#87

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by homeboy604

You are missing FAN and its components, yo.

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01-06-2014 , 05:03 AM

#88

rishisharma

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Join Date: Jan 2014 Posts: 1

hi savant. .your profile pick looking awesome.. .beautiful creativeness

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01-06-2014 , 09:22 AM

#89

BigBiceps

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Join Date: Mar 2004 Posts: 6,205

Quote:

Originally Posted by SuperWhale

Which expiration?

It is for January and February expiration.

A 15% down move would not affect me (well it would some, but not disasterous), it is a bigger move that worries me.

The strike range is outside of (151,199). SPY at 183.

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01-06-2014 , 10:09 AM

#90

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by BigBiceps

It would cause a margin call. I think it is 8% for SPY that the options are tested against...

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01-06-2014 , 10:29 AM

#91

BigBiceps

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Join Date: Mar 2004 Posts: 6,205

The market has been so calm the last few years, if I saw a 4% down day I would start scaling out at that point.

These are very liquid and decay a little every day, so there shouldn't be much slippage.
If the spread is too wide on SPX, buying SPY puts or SDS calls also works at decreasing the margin use.

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01-06-2014 , 11:15 AM

#92

savant111

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Join Date: Nov 2008 Posts: 3,101

Quote:

Originally Posted by rishisharma

hi savant. .your profile pick looking awesome.. .beautiful creativeness

Ty sir.

JB...In CYTK at $7.02. Holding for a few weeks unless stop triggers (giving this one a good 7% or so everybody..).

Tks for posting the pick regardless how it turns out.

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01-06-2014 , 11:58 AM

#93

jb514

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Join Date: Oct 2009 Posts: 2,837

Quote:

Originally Posted by savant111

Ty sir.

JB...In CYTK at $7.02. Holding for a few weeks unless stop triggers (giving this one a good 7% or so everybody..).

Tks for posting the pick regardless how it turns out.

Nice. I'm following my 2014 resolution and just watching. Offshorehunter, who writes that blog, keeps super tight stops that I kinda like. As in she'll go long 7 and risk 6.90 or 6.80 but sometimes take multiple entries before the trade takes off.

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01-06-2014 , 01:00 PM

#94

savant111

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Join Date: Nov 2008 Posts: 3,101

Iirc you're not a big fan of moving avgs, but the 10, 20, and most importantly the 50 are starting to slope upward.

I think even if it pulls back off the breakout, the dip probably gets bought up. That's one of the reasons I'm going to give it a longer leash. I also took a smaller than normal position size, so I can add shares later if I choose.

Gl bro!

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01-06-2014 , 02:18 PM

#95

BigBiceps

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Regarding my tax question earlier, it looks like I won't have to put my thousands of transactions on the form 8949, as schedule D now allows for combining totals if the basis is reported.

I still might have to report the options trades, as I am not sure if they will report those bases on the 1099s, yet for 2013.

Pretty happy about this ... also fixed income & munis are kicking butt again today.

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01-06-2014 , 04:45 PM

#96

ASAP17

Pooh-Bah

Join Date: May 2008 Posts: 5,882

Lots of movers as we approach close in social. $YELP up 6% to $71.75, $FB up 4.5% to $57, $TWTR was down 7% at open now under 4% to $66.30.

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01-06-2014 , 07:05 PM

#97

SretiCentV

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Join Date: Oct 2006 Posts: 3,695

Getting killed so far this year but keeping calm. Bought some BRK.B Feb 120 calls for $1/share on the dip today

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01-06-2014 , 07:38 PM

#98

MyrnaFTW

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took a nice hit today on KNDI , will most likely avg up tomorrow . Dumping BYD finally and was thinking of entering MU on the short side, but I will let it report first . It seems that the street is only looking at the top line growth due to its acquisition but not looking at the full balance sheet.