"BANG" Option Trading...taking $1,000.00 to $100,000

Discussion in 'Chit Chat' started by increasenow, Sep 18, 2009.

  1. great stuff..thanks for sharing...!
     
    #21     Sep 19, 2009
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    #22     Sep 19, 2009
  3. white17

    white17



    I have a word of advice for you. Make the trade when it's there rather than scheduling one trade per day. It may take a couple days for things to line up. Good luck Increasenow. You're going to need it. Beware of size.

    Wilt: I've seen that same thing happen. Back in the "good old days" 97-99 it was indeed possible to turn 10 K into 100K +. Also possible to have it eat your shorts. $1000 per day gain on options only was easy. Look at the price history on stocks like Qualcom, INTC, CSCO. 40 contracts and a quarter point move on the option was all it took. It took more than a thousand bucks to lay the position on though.
     
    #23     Sep 19, 2009
  4. My prediction is that you lose around 20% on this trade alone in around 3-5 days.
     
    #24     Sep 20, 2009
  5. white17

    white17

    I agree.

    Even if you have correctly called the direction of movement after the earnings announcement, the vol is likely to contract because the 'unknown' is now 'known.' I don't like holding into an earnings announcement.
     
    #25     Sep 20, 2009
  6. spindr0

    spindr0

    quite true but surprisingly, RIMM's IV hasn't increased that much over the past month. What happened to the good old days??? :)
     
    #26     Sep 20, 2009
  7. white17

    white17

    They went up in smoke as I recall
     
    #27     Sep 20, 2009
  8. spindr0

    spindr0

    I think that the peeps in charge of the lexicon should change current vernacular to

    "They went down in smoke"

    :)
     
    #28     Sep 20, 2009
  9. white17

    white17

    Excellent point !
     
    #29     Sep 20, 2009
  10. #30     Sep 20, 2009