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Making Money A Primer to Derivatives Trading
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TheFinalEpic Offline
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Post: #76
RE: A Primer to Derivatives Trading
(02-09-2017 02:20 PM)Chengiz88 Wrote:  RE: Raising money to trade -

Am meeting principle partners of a Hedge Fund, hopefully you see your boy C88 on the front cover of the FT soon.

#getrichordietryin

Bust out a datasheet!

"Money over bitches, nigga stick to the script." - Jay-Z
They gonna love me for my ambition.
02-11-2017 01:01 AM
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TheFinalEpic Offline
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Post: #77
RE: A Primer to Derivatives Trading
Also, I've been looking at building algorithms with python over the last little while, I'd be very interested if any of you guys have experience with coding trading systems.

"Money over bitches, nigga stick to the script." - Jay-Z
They gonna love me for my ambition.
02-11-2017 01:02 AM
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jj90 Offline
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Post: #78
RE: A Primer to Derivatives Trading
I coded up a system in python awhile back for testing purposes. Didn't hook it up to execute via broker's API but you can ask here or PM me.
02-11-2017 04:47 AM
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TheFinalEpic
TheFinalEpic Offline
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Post: #79
RE: A Primer to Derivatives Trading
(02-11-2017 04:47 AM)jj90 Wrote:  I coded up a system in python awhile back for testing purposes. Didn't hook it up to execute via broker's API but you can ask here or PM me.

Did you use Quantopian or Zipline to write the program? Are there any resources you'd reccommend for coding trading systems?

I've thought about paying a freelancer to help me out, but I also want an understanding of the processes so that I can adjust accordingly and make changes as I grow with the algorithm.

"Money over bitches, nigga stick to the script." - Jay-Z
They gonna love me for my ambition.
02-14-2017 04:45 PM
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Chengiz88 Offline
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Post: #80
RE: A Primer to Derivatives Trading
(02-11-2017 01:01 AM)TheFinalEpic Wrote:  
(02-09-2017 02:20 PM)Chengiz88 Wrote:  RE: Raising money to trade -

Am meeting principle partners of a Hedge Fund, hopefully you see your boy C88 on the front cover of the FT soon.

#getrichordietryin

Bust out a datasheet!

IF (big if) goes through will do for sure. At the moment backtesting the strategy for them and doing a dry run to show what I built works. They seem interested but until you sign the dotted line it's all speculation
02-16-2017 04:43 PM
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jj90 Offline
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Post: #81
RE: A Primer to Derivatives Trading
(02-14-2017 04:45 PM)TheFinalEpic Wrote:  Did you use Quantopian or Zipline to write the program? Are there any resources you'd reccommend for coding trading systems?

I've thought about paying a freelancer to help me out, but I also want an understanding of the processes so that I can adjust accordingly and make changes as I grow with the algorithm.

I haven't used Quantopian, but have looked into it and it is good. Gets rid of all the setup you need to take on. I coded my setup in pure Python using numpy/pandas/Quandl API.

The build vs outsource debate comes down to whether you think your time is better spent elsewhere instead of debugging.
02-21-2017 02:56 PM
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edlefou Offline
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Post: #82
RE: A Primer to Derivatives Trading
Anyone writing covered calls? I'm looking for some rules of thumb from people who've been doing it for a while. If I can squeeze out a few hundred dollars here and there with relatively low risk, why not?

Too bad jj90 got banned. Was it because of his China meltdown?

@TheFinalEpic: any updates on the positions you talked about upthread? What are your thoughts on covered calls?
05-06-2017 04:41 AM
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tomtud Offline
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Post: #83
RE: A Primer to Derivatives Trading
I'm looking into covered calls as well. I joined the blue collar investor recently and am going through his material. Check his videos on YouTube to start off with.

I'm using think or swim software. Any of you want to share your scan (search) parameters for selecting stocks or options to trade?
05-07-2017 09:58 PM
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Omad Offline
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Post: #84
RE: A Primer to Derivatives Trading
^^Regarding covered calls, I use them occasionally.

My basic criteria is:

1. Liquidity, the options need to have a tight bid-ask spread and good open interest. This applies for any trades I do, not just covered calls.

2. Volatility, need to have high Implied Volatility to get enough premium from the calls to make it worth while. I use Implied Volatility Rank, anything above 40-50 I would consider high enough.

3. Price, CC's are a bullish strategy and I'm a contrarian so I'll only do them on stocks that have been beat up and trading around their lows.

I mostly sell the 30 delta option with 20 - 50 days until expiration. If the stock price falls I'll roll the call out to the next month once most of the extrinsic value is gone. If the stock price rises through you call strike you can also roll the position if you don't want the stock called away.

CC's are probably my least used strategy, most of the time I'll just sell puts, If I get assigned on the puts then I'll sell calls against the stock.
05-15-2017 04:49 PM
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CaptainChardonnay Away
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Post: #85
RE: A Primer to Derivatives Trading
Anyone trading options? I started a paper account recently.
02-21-2019 03:35 PM
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Azlan Offline
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Post: #86
RE: A Primer to Derivatives Trading
Ive been trading options for years. Made many many mistakes and lost a lot of money early on from not fully understanding what i was doing. Been mostly interested in the PM sector. Over the last few years ive gotten better and made some good trades. It was tough but I never gave up and I've got a thorough knowledge of how options work. I'm looking for short term downside in PMs then I'll be buying long calls. IMO paper trading options will never give you the experience needed to trade them successfully. Trading options can be gut wrenching and i think most people that try it lose money initially and give up. Like anything else if you fall down 100 times you have to get up 101 to be successful.
02-24-2019 01:10 AM
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CaptainChardonnay Away
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Post: #87
RE: A Primer to Derivatives Trading
I'm using paper trading to become familiar with the mechanics of the platform. I'm making pretty good progress so far learning because I have been plowing through a lot of material on the subject.
02-24-2019 02:28 AM
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HD668B Offline
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Post: #88
RE: A Primer to Derivatives Trading
(05-15-2017 04:49 PM)Omad Wrote:  ^^Regarding covered calls, I use them occasionally.

My basic criteria is:

1. Liquidity, the options need to have a tight bid-ask spread and good open interest. This applies for any trades I do, not just covered calls.

In trading I found that doing what the common knowledge tells you will result mostly in loosing.

Liquidity, your first requirement actually works both way. I have multiple strategies based on the LACK of liquidity that netted me over the years in the 6 digit ranges. Flash crashes, gaps, spikes, stophunts, all these patterns happen in highly ILLIQUID markets and offer very high reward/risk ratio.
02-25-2019 11:07 AM
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Arado Offline
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Post: #89
RE: A Primer to Derivatives Trading
How many people here are using Robinhood for options trading?
02-28-2019 05:25 AM
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CaptainChardonnay Away
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Post: #90
RE: A Primer to Derivatives Trading
I use TOS.
(This post was last modified: 02-28-2019 11:07 AM by CaptainChardonnay.)
02-28-2019 11:07 AM
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