Options Basics Thread (Calls/Puts)
Premium: The cost of an option contract. An option contract represents 100 shares of the underlying so multiply the premium by 100 to get your cost basis per contract.
$KBH Not a bad risk to reward here for Jan or June puts, premiums are currently pricing in a $21 and $26 move respectively.. if what I think can play out, they're at a discount currently. Eyeing the 70 and 65 strikes for Jan and June.
new home supply increasing, demand potentially increasing as well now, also low lumber costs equal profit margins likely increasing but unemployment is ticking up, when labor market weakens it tends to continue... not sure I am as bullish on home builders as Jim Cramer
I see a short opportunity for $XHB $POOL $KBH etc over the next 6-12 months... risks would be rates come down and demand goes up with unemployment rate not going up, balance sheets for these companies are solid although margins are flat or declining for $KBH
$SPY
17 Feb 405p 1.32 - 1.49, 1.69
buyside liq taken out
intraday sellside taken out after strong discplacement
fvg rejection opportunity to short down to Friday Feb 10th sellside liq at 4060.75
$ES_F $MES_F 5m
so close to passing...
traded MES because I had to go get a haircut and couldn't manage
would've easily passed off this one trade if I was home and took ES
$ES_F
god damn that trade took a lot of managing
out of all $SPX puts
4080p 1.02-2.4
4090p 2.6-4.2
shouldn't have even traded after that overnight $SPY play for 160% but did and gave back gains and struggled to get them back
well we got the drop, upside push never really came unfortunately which is why I wasn’t confident in the downside move, some stops were ran but not the ones I was focused on
$ES_F 1hr levels of interest
want to see a test of CE and potentially a push to buyside liq.. after that, may be potential for a pullback down to weekly opening gap/sellside liq depending if we are truly range bound until CPI or not
Got another 50k apex account for $30 last night and blew it in the first trade trying to hit the $2500 profit goal haha was up well over $2500 and just stayed in thinking NQ would go for buyside liq at 12728 and it did not, oh well. The other 50k eval is up nicely, approval soon.