Advice from opton traders

Discussion in 'Options' started by gunslinger, Aug 4, 2005.

  1. I bought the ADBE aug 30 calls day after earnings at 3.20 trading at 2, not really an options trader so advice would be appreciated. Would it make sense to buy more here, sell what I have or just hold to expiration? Thanx.
  2. I mean aug 25
  3. They're a proxy on 100 shares as they're roughly 90delta. Would you be comfortable with a stock position = 90 shares * calls owned?

    If you're considering selling I certainly wouldn't be a buyer of more. If in doubt, get out.
  4. ===============

    Dont give advestment advice.

    May bounce a bit @ $26;
    but its below 200 dma, weak,
    down YTD, more weakness
    more gaps down YTD than i've seen in a while, more weakness,
    time decay is really about to bite you, more weakness.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Surely wouldnt buy more or hold it;
    comissions are cheap,would sell,bid 2.10 now

    Wisdom is profitable to direct:cool:
  5. There is no decay in those, they're a dime over intrinsic.
  6. I appreciate the input fellas, will hold and not add. Merrill came out after their quartely update on Mon. and reiterated their buy recomendation. They said that some may have been disappointed as ADBE didnt raise theri guidance.
  7. Not that they would have an ulterior motive..

    All kidding aside, do NOT base your trading on what the analysts say. Not the quickest way to the poor house; it's the scenic route.
  8. It's better to buy straddle before earnings announcement.
  9. Did you ever try it? Won't work nearly as good as you expect. Once te numbers are out the IV goes out. Might even consider selling straddles before numbers, if I had the nerve.
    Short timespread would be best if you think IV is too high and expect a move.

  10. MTE


    I agree with Ursa on that.

    Buying straddles to play eanrings or other volatile events is not as easy as it may seem. On average, you'd be lucky to breakeven.
    #10     Aug 5, 2005