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ForexForex
Registered: Jun 2009
Posts: 888 |
02-15-12 08:21 PM
Quote from ForexForex:
I think with the WTW trade you are "biting off more than you can chew", or in other words "you have too much on your plate".
Quote from ForexForex:
I think the WTW trade will weigh you down in the future, perhaps if you were not such a glutton you might get better results.
Quote from ForexForex:
That's the problem with the WTW trade. By thinking about spreads you are making a pig of yourself.
Quote from ryanpatrick:
Still not getting your point.
I was trying to come up with as many puns as I could for WTW Weight Watchers International.
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atticus
Registered: Mar 2007
Posts: 12701 |
02-15-12 08:25 PM
Quote from ryanpatrick:
Same here, I felt that too after putting up some crap like that using credit to buy back shares when the company's guidance are not strong....I clearly felt the puts were going to get paid off on the strangle play, until that crap crossed the line...But that's the wild card in these plays.
My guess is that they unloaded a yearly high (notional) in the last few days. I have no idea as to their individual restrictions. This stock is the GRPN of their sector. It looks like a fantastic short, but I can't replicate it cheaply in vol so I have little interest in the ticker.
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ryanpatrick
Registered: Nov 2011
Posts: 360 |
02-15-12 10:49 PM
Now, this strangle looks much better....ACOM is at -5% AH, and the past 4 quarters the shares have gone at least 5% in the same direction throughout the following day. I like the odds on this trade, I think we see at least $25 if not lower at some point tomorrow.
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ryanpatrick
Registered: Nov 2011
Posts: 360 |
02-15-12 10:55 PM
Quote from ForexForex:
I was trying to come up with as many puns as I could for WTW Weight Watchers International.
I see it the point now lol....yeah, this one's a wild card one....I bought 200 shares on that 40% earning trade run up last year, which is why I came back to it this time around. I was all stock so I actually held onto it through the post earnings day too before dumping, but putting about $9000 in risk on such a trade is much to risky considering the fact that I could have gotten nearly the same result with $400 in initial risk. I'm all options on these earning trades now.
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ryanpatrick
Registered: Nov 2011
Posts: 360 |
02-15-12 11:06 PM
Whoa....anyone else watched AAPL today? I saw it at $523 and thought it would be nice if I just put 1-2 contracts on the put side to see if it woulf reverse lol.....I wanted to wait for next week's option expiration before entering, but didn't expect a -30 point move from that intraday level I saw.
We could finally be looking at the start of a 5% correction here if not more. To me, AAPL was the last bull straw holding the rally together.
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