Someone has pulled a bin Laden trade and has made nearly one billion dollars in puts for the SPY. I'm trying to find out more about this put that was made on the SPY.
Google " bin Laden trade put 4.5 billion " .
4.5 billion dollars will be made by September 21st, 2007, if the puts don't expire first and if something causes the markets to drop by 30 to 60 percent. Terrorism threat/extortion? China drop-kicking US dollars for the $10 billion they lost in sub-prime loans? US Gov being blackmailed?
You can read about it at this forum http://www.tickerforum.org/cgi-ticker/akcs-www?post=4669 The last pages of the forum holds the best information.
Are puts considered confidential or are they posted on the 'Net somewhere? Been looking for several days and can't find the information.
For instance, if you own stock now selling at $10 each and want to protect your portfolio against losses, you could buy a put option. Say, your stop loss is 10% loss. You would either sell your stocks when they fall below $9 each. However, this would not guarantee a stop loss because every seller would be freaking out and wanting to sell these stock. So, the stock price might even fall to say $7 each, missing your stop loss.
To hedge against the extra loses, you would have bought put options that would give you a right to sell your stocks at $9 each regardless of how low the stock prices would fall.
Another way of benefitting from options would be to write a spread. At the moment, because the market is bearish, writing bearish call spreads would be the best way to make a lot of money. However, because these spreads are credit spreads, no broker would let you write the spread, without you having an amount of cash in your account, should your credit spread go wrong and your written options get exercised.
These strategies of write credit spreads are better left to more experienced investors. If you are fairly new at stockmarket inveting, I would suggest that you put your money in less volatile investment vehicles like fixed income stuff like savings bonds, CDs etc.
Since there Trading Syestem was going down several times in a day and every one was loosing so much money, I have decided to leave that Firm.
I am a prop Stock trader and joined them because they were advertising and claiming they are honest.
However , afdter 6 months i , was not able to get the remaining money on my account from them.
They dont even answer the phone andif they do they alwas promise that they will send me the check , however since 6 months ago i still didnt get my money back.
Please be careful if you wanna join them and if any one has any experience ,share it with me.
Based on my information the did the same thing to several other traders and they all had to go to court to get their money.
it is so funny because on their Ads they are claiming that they are very honest.
Ha Ha ,
Now we know what is the meaning of honestly
if u dont have disipline dont even start u will loose all your money
many people do trade and have become very very rich so it can be done
I will answer ur querry in different way :
I am okay if I could get 10 to 12% on yearly basis from day trading. There are several client who regularly lost money in day trading. Looking at current volatility in indian markets, it is very difficult to time the trades.
But I have also seen few people ( particularly with lots of money and those who keep strict stop losses), earning almost 70% a year in day trading.
In case you need more information please email me or ask specific question. Am in Mumbai.
Anyone have experience with good ones?
Etrade is supposed to allow you to trade on 4 or 5 stock marktes around the world – a huge advantage for a really smart investor or one that wants to focus on international stocks, but useless to most smaller investors (or most that want to focus on mutual funds – like you, maybe).
There are some other good ones. You'll find that OptionExpress is very good (never used this one myself, but they are well rated). More expensive that scottrade but margin rates are lower and maybe they are faster at filling trades.
Anyhow, thats my take on 3 of them but there are many more out there. Of course only used ones that are sipc insured, and again – I'd advise searching for more specifics on this via an online search. FYI, I think kiplingers had an areticle about this about 1-2 years ago. good article but alot can change in 2 years (and I'm not positive it was Kiplingers)
Best luck.
finance.yahoo.com is the website that i use the most during the day, i am a daytrader also.
If you need more advice just feel free to contact me.
I hope that you will chose my answer as the best one.
Thanks
Regarding taxes, in the US, if you make $60000 daytrading, you will pay short term capital gains. On the other hand, if you lose a net of $60000, you can only write off $3000 per year, until the $60000 is written off (about 20 years).
swh
http://www.earnings.com/earning.asp?month=20070215&day=20061116&date=20070216&client=cb