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[MVP]

I just transferred $1,400 into a dormant Fidelity account and I will run an experiment I've run before, which had mixed results, and try to turn a little into a lot. I will be gamb...ahem, I will be investing in mostly weekly and front month options. If you don't know what this is, Google it. If you do, you can follow my progress. Whenever I make a trade, I will update with the profit/loss amount, what symbol and option I bought, and why I did it.

I may have future withdrawals or deposits to manage risk, and I'll update the balance accordingly, along with screenshots to keep track of the progress. I will be trading just naked calls and puts, nothing fancy. This thread may also be short-lived because I'm starting with such a low amount I kind of have to take higher risks in the beginning to get some breathing room.

If you have any questions about options, I'd be happy to answer them, but just keep in mind I am not a financial advisor, and you will lose all of your money following my advice. My posts are for entertainment purposes ONLY.

I ran this experiment before with a partner keeping track, but I started with much higher, about $7k, in a couple of months I had $59.5k, before losing $30k in a single day on a stupid NFLX option that expired that same day, because I didn't think that POS could sink any lower. Oh, it could and it did and I got my face ripped off for being a stupid aggressive over-confident jackass.

After that, I sulked and withdrew my $22k-ish profits and bought the car I have now with some of it. Here I will try it again and let you guys follow along.

Trade History:

Trades:

Bought 14 GOOG calls, expire tomorrow, $775 strike...bought at .90, sold @ .40 = remaining balance $667.61
Bought 7 TPX puts, Oct 20 expiration, $29 strike...bought @ .85, sold @ 1.50 = remaining balance $1,095.77
Bought 40 FB calls, Oct 5th expiration, $23 strike...bought @ .25, sold @ .15 = remaining balance $625.46
Bought 49 INTC calls, Oct 20 expiration, $24 strike...bought @ .12, sold @ .11 = remaining balance $517.23
Bought 8 PCS puts, Oct 20 expiration, $13 strike...bought @ .60, sold @ .85 = remaining balance $688.84
Bought 125 HPQ calls, Oct 5th expiration, $16 strike...bought @ .05, sold @ .01 = remaining balance $142.30
Bought 9 SPY calls, Oct 5th expiration, $147 strike...bought @ .10 (active trade) = ???


By request, to anyone thinking of dabbling in options:

As long as you're fine with lighting that money on fire, then sure, learn the ropes. You may have cold water running through your veins and trading might be your calling, you'll just never know if you don't try. If you're tight on money, but still want to learn, paper trade a bit, read a lot of articles (books tend to be outdated or try to cover too wide an area of trading).

If you like it, trade insignificant amounts, maybe a couple hundred dollars, but completely disposable income. Forget about being rich, forget about making a living, just worry about making good decisions, and worry about maximizing returns, and minimizing losses. There WILL be losses. Minimizing a loss that could have been worse is almost a win. My first GOOG trade in this thread I took my $700 loss and moved on. Had I held throughout the next day and "hoped" to make it back, I would have lost the rest, but instead I came back and made $500 on the next trade. That's how it is, don't let the losses demoralize you, it happens.

After you burn through the first few hundred, and you will lose it all, there are no exceptions, then ask yourself how you feel. Do you feel like you gambled and lost, or do you feel like you're paying for an education and you're learning/getting better, and still want to learn more? If you do, then keep it up, stay home and read/study while people are out eating shit and getting wasted and blowing their paycheck throughout the weekend.

 

[Steelrain]

I will be following this. Good luck man.

 

[Lanbeast]

SUBSCRIBED

Spoiler

for inevitable tears

 

[NomarTyme]

You have a better chance with lottery scratchers.

 

[Messypandas]

wish i could understand this shit

 

[C4Lukins]

Unless you have some sort of inside information, which would be illegal, I can pretty much guarantee you this will not turn out well. Luckily you are investing so little that it will not destroy you in the end.

 

[PS3GamerKyle]

sweet mercy, gimme some of dat cash

 

[GroteSmurf]

I'm gonna subscribe cause i never understood shit about stocks and stock trading...plus I want to see you win

 

[Bacchus]

I wish I can take out my $13k on Citigroup

 

[Jake.]

wish i could understand this shit

yup.

 

[Ken Masters]

Good luck

 

[Hypno Funk]

Surely the commission on any of your regular trades will eat up any of your profit spread. What's your broker charging?

 

[Dynamite Shikoku]

I predict OP will be rich

 

[Fatalah]

You have a better chance with lottery scratchers.

Not really. Subscribed!

 

[Darklord]

Tips please! I can blow $1400 right now and I want $100,000!

 

[ZeroRay]

You'll probably crash and burn before the halfway mark, but good luck.

 

[kinggroin]

Good luck OP.

sincerely

 

[2MF]

Unless you have some sort of inside information, which would be illegal, I can pretty much guarantee you this will not turn out well. Luckily you are investing so little that it will not destroy you in the end.

How can you guarantee that it will not turn out well? At most you can say the chances are rigged against him (which many people say they are due to things like high-frequency trading which create an unfair market), but that's not a guarantee of failure.

 

[Bulbo Urethral Baggins]

This is great.
If it turns out well, I may give you my entire life's savings to gamble with.

 

[Steelrain]

I have $1400 as well. I'm too scared to do this though

 

[Johnlenham]

wish i could understand this shit

Pretty much. Will be intresting to attempt to follow none the less.

 

[NomarTyme]

Not really. Subscribed!

Challenged accepted! 1405.35 on lottery scratchers!

 

[Mii]

When you go through each of your trades, can you discuss your reasoning for why you made each trade?

 

[Shao Kahn Brewing a Stew]

Let's do this!

OP, provide a nice FAQ in OP for those that are willing to do this for fun! (AT THEIR OWN RISK OF COURSE!)

 

[East Lake]

I'm in. I hope you do well!

 

[Darias]

Subscribed with interest... Willing to be you'll perform better than I have been doing... About the only thing I got right was buying appl at $148/share.

 

[MVP]

Surely the commission on any of your regular trades will eat up any of your profit spread. What's your broker charging?

$7.95 + .75 per contract I believe, but I trust them. I've tried OptionsHouse which charges .15c per, but the trades act a little weird. It feels like they're slow with your trades and they jump in before you to eat a few pennies profit. It's weird but I don't like them.

 

[Recon]

I have some money. I am almost willing to do this with the OP. A much more detailed plan would be appreciated.

 

[Black1ce]

I'll be following this because I too will start investing by the end of this year.

 

[MVP]

When you go through each of your trades, can you discuss your reasoning for why you made each trade?

Yep, will be doing this. Keep in mind sometimes the reason may be "I just felt like it". Sometimes it'll just be a chart set-up, momentum, earnings, etc.

 

[Clott]

I wish I knew this stuff, I have a couple of friends that are millionaires because of trading that started with nothing.

I hope you can do it. If I had 2 to loose I would jump in.

 

[Hazaro]

Subbed.

 

[Darkkn]

No idea what OP is actually doing but sure sounds neat. Respect if you can turn that money into 100k.

 

[Kinyou]

Invest in the next Nolan movie!!

 

[David Incorporated Esq.]

I'm totally down for playing along with some of my own cash. Shit, I'd almost be happy to double the OP's initial investment and let him have at it for a cut of the profits.

I'm feeling whimsical today, deal with it.

 

[CiSTM]

My sister went in with eleven thousand euros and doubled it seven months. It got me really interested in stocks. Unfortunately I love sitting on my moneys so I probably won't do a thing. Good luck to you man.

 

[Filth]

awesome idea op. god speed. i will be checking back regularly.

 

[Az]

Will be following this. If it works I'll hire OP invest 10k for me.

 

[CrankyJay]

The house always wins.

Good luck tho.

 

[GK86]

I will be following this thread with great interest. I have always wanted to try my hand at the stock market, but my lack of knowledge prevents me.

Hopefully op, you teach us a little of the basics, so that some of us can be confident enough to give it a go.

Good luck with your trading.

 

[Angst]

Subscribed!

Good luck, I hope you know enough not to take positions where you suddenly have to produce the underlying stock to a willing buyer of the sell option...

 

[brianjones]

 

[equap]

can I do this but with $500?? to turn into $10,000??

 

[Wes]

Godspeed OP. Will follow with interest.

 

[WanderingWind]

I have 1400 just chilling too. I want in OP! I'll give you 10 percent. And candy.

 

[C4Lukins]

How can you guarantee that it will not turn out well? At most you can say the chances are rigged against him (which many people say they are due to things like high-frequency trading which create an unfair market), but that's not a guarantee of failure.

Well I am a financial adviser, which by no means makes me an expert. Look at Pachter and you can see how wrong we often are. But this sort of investment is like buying a 1000 shares for a dollar on some random Chinese company that you know nothing about. It is more like 1000 dollar lottery ticket then it is an actual investment. I wish he/she the best, and if you have that money to burn and you are an aggressive investor then it could turn out big.

 

[MVP]

For all of those saying I will lose, chances are I will, and I'm well aware of that. The real reason I'm doing this is because I feel having more eyes on my trades will force me to act more disciplined and less reckless as I have before, and hey, if I make some decent profit that's good. $100k is just a nice number.

On the other hand, good things happen. Here's the trading log of a guy who inspired me, from $2k to over $100k:

 

[MarkMclovin]

Subbed.

Hopefully this turns out exciting!

EDIT - I fucking love spreadsheets like that, OP needs to keep track that way so we can follow it easy.

 

[MVP]

Subscribed!

Good luck, I hope you know enough not to take positions where you suddenly have to produce the underlying stock to a willing buyer of the sell option...

lol no I don't hold options to expiration...usually a few days, maybe a week or two if it's a longer-term one.

 

[Dynamite Shikoku]

can I do this but with $500?? to turn into $10,000??

You can buy one Apple share