Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Arena Pharmaceuticals (ARNA) -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (2218)	2/20/2014 9:17:08 PM
From: wolfgangrene	Read Replies (1) \| Respond to of 2274

Hi Ox, thanks for both those posts. In recent years, trading near expiration, closest just OTM options, the plan has been to let them run. 10 years ago, when I traded ES mini futures, it wasn't even a plan so much as an absolute rule. The stop was always set, without fail, 2 bucks under the buy and a sell set for half, 2 bucks in profit. You could never lose more than those 2 bucks per contract and when you called the direction correctly, at 2 bucks profit, you could no longer lose the trade. Then you moved the stop up or trailed it. I stopped trading the minis back then because I couldn't concentrate on trading futures and running my business. There are times in options when market direction is better defined and options can return 10/20 fold. Right now the market is a bit schizophrenic. Those multiples aren't as common. I may return to preplaced stops.