Suppose you know with 100% probability what the direction a stock price is going to take but you don't know WHAT price its going to be at or by WHEN, how would you go about trading this to make max gains?
>>1113788
buying call or put options on margin?
>>1113788
If you know it's going to go up and keep on going up, just use a somewhat strict trailing stop.
It won't be the most optimal profit, but it will be within a couple of percent of it as long as the stock does not fluctuate too much going up.
>max gains
Write [call or put] options at the current price point and use the money to buy some [put or call] options on the stock. Make sure you don't accidentally write the one you should have bought or buy the one you should have written.
>>1113788
if i knew 100% that the stock is going to go up or down in the next 5-15 minutes i would trade binary options. all you need to get right is the direction the price moves before expiry.
finding a binary option broker that isnt run by scam artists is the hard part.
just buy call or put with ~30 days to expiration.. if you need more time then sell and buy it again another 30 days out a week before expiration
agreed about writing (shorting) options.. lowering cost basis good but that usually requires higher permissions and takes longer to get.. binary options? nigger pls y u so fancy
SO it sounds like OP has a stock tip for us so tell us now faggot
I'd tell everyone here on /biz/ to buy it, and after they dont believe me i'd make a '[insert people who didnt buy what i told them to buy] on suicide watch' thread
guys gotta get in on this LNCO
http://www.cnbc.com/id/49438008
>>1113798
Options aren't guaranteed to move in the same direction as the underlying security. I got burned by this once (thought AMD stock would jump on higher than expected earnings, it did, the call I had bought went *down* in value). However, the value of a futures contract will always move in the direction of the underlying security.