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Forum - Wall Street Pit (Callwave - CALL)    Stock Due Diligence for All

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From: JesseLivermore (Rep: 422)Date: 11/18/2015 10:28
Forum: Wall Street Pit - Msg #2581728 - List CALL msgs Thread #673795317 (Rec: 1)
some advise on 20 years of playing the options market

-- never open positions on a Friday

-- never buy options week of earnings as premiums are down right obnoxious

-- when playing options on levereged ETF's always take what the market gives you

-- never trade options on thin equities or new IPO's the spread will put you deep in the red before you even start

-- always write options on long term positions , its the bread n butter of institutional traders

-- never bet more than 20% of your account on any 1 options even if its 100% guaranteed to make $

-- if your plan is to trade based on news event dont change the plan if the idea didnt work out ,, that applies to trading in general

--- have realistic expectations just because you once made 1000% return or see others doing the same its a gift although 50%-200% very normal in derivatives trading

--- yes,, you can lose if you buy both calls and puts on earnings bet if premium was already hi and stock stays in a range

--- if you keep losing money trading options you have to face the fact that you cannot gauge momentum ,, don't give up but try and change your parameters and trading size.

-- if you dedicate your life to trading weeklys or bi-weeklys and the trade does not work you should plan to take your loses by Wednesday the latest as you probability of a miracle diminishes by 90% and Friday is known as writers day options will close on their strikes its very illegal, immoral and wrong but it happens every single week to thousands of stocks and the SEC couldnt give a crap

-- finally stick with known stocks that tend to reward again and again ,, dont be a hero and look under rocks for ideas that WS does not recognize

Reminiscences of a Stock Operator

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