Crypto thread

Three quick things here.  1) Don’t forget about the wash rule with these.  I don’t know if you care about the taxes here with small positions — but you should.  2) Keep in mind with day-trading that understanding time premium and intrinsic value are very crucial.  There should be a calculator to help you with this.  If there is not one on Robinhood, you can find them online. 3) Start making sure you have a stop-loss sale and a limit-order sale OCO.  This is where so many day-traders lose big.  I think in the back of their minds they don’t see it as big money so they think they can just ‘watch’ it and sell when it is best.  I guarantee they would not do this with a trade involving multiple thousands of dollars.  

This is a very volatile type of trading and you are trading very-short term options that are out-of-the-money options with low volume and low open interest.  These trades can absolutely go against you in a hurry.  This is when you need a backstop in place.  Otherwise, these little things can eat away at your bankroll.  You absolutely have to have a plan going into these trades; these are not buy and hold trades.  

Do NOT buy USO...its the wrong investment vehicle because it is an ETF which invests in the current month futures contract and as you can see today it can get hammered plus if you pull up a chart on USO vs crude, it does not track crude at all especially if there is any market volitility.

The really only way to purely trade crude is to get a futures account and buy a futures contract as far out as you can go and hold on. Any retail product is either crap or is sector based. 

I gotta dig a little bit but I am curious as to where I can buy some futures options and what the pricing on those options are. That is my task for today is to see what firms I can sign up with that are worth a crap that trade futures options and how those contracts go out in term and how the pricing is relative to the futures themselves.

So like a 5 yr old, do NOT BUY USO....

[Quote: Originally Posted by I_Need_A_Detox]Litecoin Ethereum and Bitcoin are all going through the roof Coinbase was the most downloaded app last month and they’re the only 3 options on Coinbase. I’m hearing Coinbase is going to bring a few more options onboard? Trying to figure out what they are because they’ll go to the moon when they hit Coinbase. IOTA, Ripple, TenX, lisk, quantumstamp ?? What are some smaller ones you guys are looking at?

https://bit.ly/2VrABDz

Dollar explodes higher? Interest rates going negative? 

“$USO will hold something like 30% of June futures at the open today because retail traders have poured money into it, thinking it was a long-term bet on oil. It's turning into one of the great incinerations of retail money of all time.” 

I love the fireworks at the opening bell 

I had sell orders at the moon and 3/5 got hit. Should have put them on Pluto. 

Amazon and Apple have to come down? 

Time to short the banks? 

Making a Option play today.

Buy to open BP April 24 $20 PUT option, up to a maximum price of $0.45

I agree bp, Exxon eog, oxy look pretty good for a put in my book 

Not sure how most of these stocks are up so much over the last month. 

Looking for puts on JP Morgan, BAC, and Wynn 

I drive by the new Wynn in Boston sometimes. Now that the opening of businesses has become political, liberal Boston won’t allow that joint to open for another 3 months. 

Hilton is another one. I’m currently in a put that expires 5/15. 

No idea why that stock isn’t tanking. I think it eventually will. 

Seems like you could do well day trading by putting in really low bids on puts for 20 stocks and when they hit they’re already in profit or about to bounce to profit... and then sell. 

I’m sure nobody has ever thought of this brilliant idea. 

HD, TSLA and Apple are dumping without me... And I’m not happy about it. 

GLD $170 call exp 9/30 

Avg price $6.43 

4 contracts 

Big play for me 

June oil at 12 today from I think 21 yesterday....thats not a good thing for the first day of the contract. Also USO not issuing new shares, the sign of it going under at some point in the near future.

Wall, 

How do you think this oil crisis plays out in the rest of the markets? 

One of these days in the near future the stocks are going to break down and we’re going to see a Dow -2500 type of day... and when it happens, I’ll be in puts. 

After that hit, I’ll buy ETH and BTC on Robinhood and leave it there. 

Thoughts? 

MA cancelled schools for the year. They won’t let WYNN open until at least August. Who’s going to Vegas in the summer to drink with people around pools and in crowded night clubs? 

Wynn stock should eventually take a beaten like they’ve never experienced. 

I can't see how the casinos and theme parks are going to open anytime soon.   Good luck practicing social distancing in a casino or themepark, lol.  

I think it will be bumpy for a day or two but settle down. I think there is a good chance that USO goes under though, its a total mess. The number three oil ETF went under today...

In reality there is NO choice to mirror oil that wont churn and burn investors...when you have to roll over contracts every single month that is a huge cost and a net negative to the investment...its a no-win situation.

June went under 8 and now over 12, thats a 50% jump in less than 30 minutes. Id gotta say if I had a futures acct and I saw June under 10 I might have bit...the risk/reward is too high for how long the horizon is. I would not be shocked if June goes back to over 20 by this week.

We have already had days like that so when the next one comes it will not be a surprise. Meanwhile, the spread on the challenge has the s&p flat and Bitcoin down 20%.

BTC is not developing into the saving grace that you had hoped. You are probably better off with your "puts" strategy than Bitcoin.

Still time for you to buy BTC. 

Buy now, sell December 2021-April 2022. 

Tell me what stocks are your biggest positions so I can short them.