fatpat

Good afternoon

fatpat

Happy new Year

Happy Trade and win more

fatpat

Good morning

fatpat

Good morning

fatpat

If most C Hings are very bullish this year, then this strategy is good for the newbie

DEC SP158

Try to see whether you can look up the initial margin needed and the premium,
and calculate the target ROI.

Enjoy.

fatpat

引用:

原帖由 oem7110 於 2013-1-3 13:54 發表
Could you please tell me how much you get for DEC SP158?
Thx

Last price for
DEC 158P @212
DEC 166P @260

fatpat

引用:

原帖由 oem7110 於 2013-1-3 14:44 發表


Dec 2013, will it be too long period for option trading?

Depends on how much time you have to trade / follow the market.
Of course this trade is not for a day trader, but definitely a good start for a beginner
to track the movement of an option.

For a 2 year low at ~16000, I think I can sleep well in 2013 if I do a trade like that,
especially everyone think another 4000pts+ uptrend this year. SWAN.

You can think of it as an exercise to the inexperience one.

I did tried to do some LC/SC DEC yesterday but no luck, may be try again tomorrow.

P.S. BTW, in America, people do LEAPS, so 1 year actually is not a forever terms

P.P.S. oem7110 C-Hings, tell the inexperience one the ROI tomorrow using the closing data tonight
          (maybe tomorrow/Monday as some people target a small retreat before going up again)

fatpat

Good morning

fatpat

引用:

原帖由 fatpat 於 2013-1-3 13:18 發表
If most C Hings are very bullish this year, then this strategy is good for the newbie

DEC SP158

Try to see whether you can look up the initial margin needed and the premium,
and calculate the target ...

Margin table for index option from HKEX
http://www.hkex.com.hk/chi/market/rm/rm_dcrm/riskdata/margin_hkcc/mertc_hkcc.htm#HSI

1312
S132P   7430
S138P   9420
S144P 11870
S150P 14570
S158P 18690
S166P 23140

Assume 200pts premium, i.e. $10K (200pts x $50/pt) premium,
initial margin $18690, target ROI = $10000/$18690 = 53.5%!!!

Assume 2X margin as the reserved margin,
target ROI = $10000/($18690 x 2) = 26.75%

Assume full margin (= margin for future),
target ROI = $10000/$70700 = 14.14%

Should beat deposit in the bank, or most bond fund or alike.

fatpat

引用:

原帖由 fatpat 於 2013-1-4 09:57 發表


Margin table for index option from HKEX
http://www.hkex.com.hk/chi/market/rm/rm_dcrm/riskdata/margin_hkcc/mertc_hkcc.htm#HSI

1312
S132P   7430
S138P   9420
S144P 11870
S150P 14570
S158P 18690
S166P ...

P.S. 2X initial margin should good for a slow index drop of 3000 points in 2 months,
       i.e roughly the normal monthly swing of 1600pts x 2