Stephen B asked:


Lets say I bought a call option for $2.00.

So I paid $200 for that one call option.

If i put a stop-loss oder in for $1.50 that is good until cancelled (GTC 60 days) will this oder carry into the pre market trading hours and after market trading hours?
Okay so what about stocks? If options aren’t traded after hours what happens if you have a stop-loss on stock?

Doug M asked:


One of the indicators I have noticed indicating a peak in the market is heavy volume on down days and light volume on up days. Along with the above the CBOE put call ratio drops to less than 0.75 for a couple of trading sessions. Livermoore used a list of stocks which fell before the market peaked.

Olivia asked:


Early in my investing career I quickly lost $118,000 in every market you can think of. Since then I have learned how to read financial reports, understand the effects of geoploitical situations throughout the world and I have extensively studied technical analysis (patterns, support/resistance, indicators based on oscillations & candlesticks).

I’m a CFP, and have been very successful in the past two years. I have netted a 8637% gain on my personnel investment. I rarely hold an investment more then 20 trading days and quickly drop any investment where I had an incorrect read.

Option trades –
SIRI Dec. 2005 CALLS +16%
RJR Dec. 2005 PUTS -7%
SIRI Jan. 2006 CALLS +38%
MXO Oct. 2005 PUTS +16%
MXO Mar. 2006 CALLS +645%
JCP Jan. 2007 PUTS 13%
SWFT Oct. 2006 PUTS +45%
LCC Oct. 2006 PUTS +73%
EK Jan. 2007 PUTS +144%
PNRA Jan. 2007 PUTS +86%
OMX Nov. 2006 PUTS +40%
OMX Nov. 2006 PUTS +65%
OMX Nov. 2006 CALLS +53%
XMSR Jan. 2007 PUTS +191%
BAB Dec. 2006 PUTS +37%
MTZ Oct. 2006 CALLS +26
Well I have enough capital, I’m sure. But, I want to help others by creating my own fund specifically in options and futures.

skahhh asked:


What other criteria do you use? Parabolic moves up….? What volumes do you like to trade options? What is your normal time frame to make sure you don’t get slaughtered?

likehown asked:


I want to make the following trade using options. Can you tell me my potential profit and loss?
Stock trades at $38 per trade.
I buy a $40 put for $3.00 per contract and sell a $40 call for $.60. Can you take me through how the maximum loss is arrived at. I am trying to minimize my loss.

bionicturtledotcom posted video:

Brief illustration of a fixed-for-fixed currency swap (e.g., dollars for euros). Please note: in a plain vanilla interest rate swap, we referred to the NOTIONAL because it is not exchanged (in that case, the notional is required only to compute the interest). However, in a currency swap the PRINCIPAL is exchanged.

daughterzion asked:


Such as call and put options. Also does anyone know about forex trading? What tax benefits or pitfalls might one incur trading options?

arazzabo asked:


My brokerage account is at a level of covered writing. the only choices I have when I select trade on an option chain is “sell to open” and “buy to close”. I understand what they both mean but have a few questions:
Symbol is “F” (Ford), current price is $7.85.
if I sell to close a 1 contract option with a strike price of $8.00 with a bid of .10 and an ask of .15 with an expiration date of Sept. 22nd and the strike price is not reached, how much money do I make? I know I would receive a net of $2.00 in my account (.10 X 100 = $10 minus $8.00 commission). Do I just keep the $2.00 if the contract expires? If the actuall price of Ford goes down to say $7.35 in a couple days, would I “buy to close?” I guess what’s confusing to me is the ask/bid prices on the option.

Also, can you sell to open puts and also calls? What’s the diff? I know a call is bullish and put is bearish. I might just be confusing the whole thing. Thanks for any info. I’m really trying to understand.
Awesome advice/answers….Thank you. On the Friday that my option is going to expire (assuming it’s below the strike price), do I have to execute a “buy to close” trade or just let it expire?
So let’s say I held 700 shares of Ford at $7.50 and “sold to close” a 1 contract option with a strike price of $8.00. Ford goes to $8.05 tomorrow. Do I now hold long 600 shares and am paid $800 dollars for the sale?

Ivan K. asked:


I think I will begin my first option trade on the upcoming Monday,Sep 22nd (Is it the first day of the new options?) I just have a couple of questions that I have not cleared.

I’m currently trading at Etrade. Let’s say I want to buy 10 calls of LEH, what do I put in the contract column? Is 1 contract = 1 call or put?

Now I want to realize my profit before the expiration date(3rd Friday of each month before 4:30PM, right?) Should I use Sell to Close for my calls or puts? What exactly do I do if I want to exercise my options instead of realizing them?

If you were to buy options, which sector would you choose? I think I would choose airlines.

Thank you so much for your answers.

Enigma asked:


The putative conspirators, whose name or names have not been made public, pulled off their heist with ease. They bought a bunch of what Wall Street calls “puts.” A put is a piece of paper guaranteeing its owner the right to sell 100 shares of stock at a stated price within a specified period of time. In the case of this bank job, the period of time was as little as five days.

With Bear Stearns stock selling at over $60 a share, somebody bought the right to sell almost 6 million shares at $30 a share. To make money on these puts, the price of Bear Stearns stock would have to lose more than half its value fast. In fact, in the days immediately after the unknown person or persons bought all those puts, Bears Stearns stock dropped like a duck shot out of the sky, to a price of $10 a share or less. The persons behind the scheme then bought Bear Stearns shares at $10 or less and exercised the puts, thereby selling them for $30 and pocketing the difference.

How could someone know that in a matter of days the fifth-largest trading house on Wall Street would see the value of its stock drop to next to nothing?
Then with the price of stock still above $50, somebody bought puts giving them the right to sell the stock at five dollars a share–which is about what you would expect to be the price of the shares of a company in bankruptcy. Matsumoto quotes one broker as saying, “When you buy $5 strikes [puts] when the stock is trading over $50, you either have to be manipulating, or you have to have insider information.” Another broker quoted in his report remarked, “Nobody in their right mind would buy that put unless you knew what was going down.”

The timing of the purchase of the puts screams out that a well-placed person inside Bear Stearns was telling someone on the outside of the firm’s increasing confusion and division. At a crucial moment when rumors were rife on Wall Street that Bear Stearns customers would not be able to withdraw their money, the stock market was hit by a large number of orders to sell Bear Stearns stock. That augmented the force of the rumors of insolvency already working to depress the price, even as panicky customers fell over one another getting their money out. There are too many disastrous coincidences here to be explained just by bad luck.

The name of the bearer of this bad luck remains hidden. A spokeswoman for the Chicago Board of Options Exchange, where the puts were bought, has refused to tell Bloomberg the name.