The Striking Price

[Survivor]

I was wondering if the Great short sellers of the OTF would consider doing another learn as you go thread.
Looking at Barron's this weekend there is some that might pay off pretty good.
I have never shorted stocks before and Honestly I would like to learn.

USO October 108 put and selling the October 92 put to hedge long stock,the trade cost $6.70 when USO was about $108.00.

Retail holders, RTH, Sell out of money July calls against stock.

Energy Select SPDR.[XLE] XLE priciest options were: SWN, BJS, HES SLB, MRO, NOV, BHI, DVN,APC, WFT, NBR, EPS, WMB, EOG,.
Decay these options and collect a premium,good return with a downside protection.

Could someone translate this into English. I use Scottrade and wonder how do you order these up. Shorts, Puts, Calls, confused?. Thanks.

[Jelly]

Shorting stocks is different than shorting (selling) options. You can go either way with options, shorting a stock is a bet it goes lower. it sounds like you are contemplating complex option plays. Don't do it.

Short some stocks first (KRE, XHB, HOG and BC are mine). Then only buy call and put options or covered calls to get into options. That's all they let you do anyway as an amateur. After all the DD on a stock, you need to analyze the risk/reward of every option strategy you want. It gets really complex. Learn the pictures.

To bet on financials or real estate or comsumers to turn down, simply buy a short ETF: SKF, SRS, SCC, etc


Book: Read Options 101



If I'm shortchanging your knowledge, I apologize.

[netwrangler]

I have never shorted stocks before and Honestly I would like to learn.

The floods in the mid-west have covered track owned by BNI.

A sharp-eyed investor could have seen that as a reason to short BNI stock. I mean, railroads have problems when their tracks are flooded.

It would have worked.

So that's the sort of thing you are looking for. Seeing why a stock might go down is the hard part. Once you see that reason, the mechanics of shorting the stock are easy.

The example I gave is based on fundamentals. Good Tech Analysts and Chartists can come up with reasons for a stock to decline based on their disciplines.

Tech or Funday, it's all the same. Tell me why you think the stock will go down. If you are right, we will make money. :biggrin:

[Survivor]

All right,I only look for stocks going up,and that tough, CPO is a good example.
I thought it would at least hit 51.00 or better today.
And it just hovered in the same rage,around 50.00.
I also had a note for PDO,that was a good one today.
Maybe that one might get slaughtered with the Fed meeting tomorrow,pulling back.