Tempting to sell? On what planet? Let me make sure I heard this right? You are saying that earning $5, yes not even the price of a value meal at McDonalds and tieing up thousands in margin is tempting? The same thousands that could be deployed elsewhere and earning a return greater then $5. BTW, the bid is most likely not some smart insider, but rather someone bidding to buy back puts they sold 200 handles lower. Vol is actually DROPPING now, not rising. Premo is super cheap. It sure as hell ain't indicating a sizable move. I'm just trying to get my head around the logic of freezing all the capital in one's account for the equivalent of spare change in the avg man's wallet.
That story is fiction, it never happened. The post should be moved from the Option forum to Chit Chat.
If you had a stand by commitment from Goldman to take you out at break even if the trade somehow went against you or even to take you out with $5 in your pocket it is, as Mav indicates, crazy. Frequently the calculation is not about risk but about allocation of capital. Tying it up that way it's a sure bet you'll never make money or have the buying power when you need it most.
big move, heh..i've been waiting for a big move for a month or so..as been mentioned couple times here-this market is a waste of time.. or as they been saying on GS elevator-this market is like a fat chick with a skinny,good looking guy...just doesn't make any f** sense
This market is a ponzi scheme. It will continue to be pumped up to the point where a 50% correction still puts the indices above multi year highs. You and I get to underwrite bens bags full of free money to the TBTF banks. The banks get free money and putting it all in stocks. More stocks get Inflated , better the bottom line looks for these banks. The pre 2008 BS headlines such as stocks are at a permanently high plateau are now a reality. Look at the heavy volume and narrow ranges at these highs, that's a sign of absorption. Absurd stock valuations are here to stay.
If I buy something I don't care if it goes up because the CEO farted underwater, as long as it goes up.
Next month starting has many things for the traders, in the forex market the NON-ADP news release might either bring in the big swing high or low prices which would be changing the traders equity to greatest level.