It would be great if you all could do something like Seanote is doing on a daytrading thread, namely posting some of your trades so a newbie such as myself can hopefully learn to trade a bit better. I say this because more than a few of the contracts in the feb, mar and apr options of which I have been trading have behaved in exactly the same manner as described in some of your posts. I would have probably saved a bundle in JNPR alone had this thread existed in february. By the by, I have this friend who's holding CCMP APR02 55 Puts @ 1.40 to 1.50 that carried bids of $1 to $1.10 last week when the stock's price was about the same. Any opinions on what I, I mean my friend, should do?
Once I find real good trades I will post them in this board under options. The CCMP trade really depends on what trader's outlook of the stock is. Does he expect it to make a big,medium or small move? What timeframe? I looked at optionclub.com to look at the historical vs. the implied and found that the put IV and seems cheap against the IV of the entire option class as well as cheap vs the historical IV. So I wouldn't sell another put against it to spread it off since you are not being adequately compensated on your short put. Hope this helps.
Thanks for the input. It seems the powers that be came to the same conclusion you did as prices seemed to be adjusted across the board today with very little movement in stock price (for CCMP anyway).
Just wondering if you've found any good trades. I appreciate your posts and have learned a lot. Look forward to your next.
I forgot about posting the trades as I had indicated in my earlier post. I apologize. I will do a better job next time in detailing the position I put on, the PnL , the gamma adjustments, rationale behind the adjustments,etc. Thanks