Discussion in 'Options' started by chienandrew, Feb 14, 2005.

  1. In current flat market, there are few events which will cause high value stock with a volatile price movement. Like last week, goog dropped 13 point because of big shares lock up expiration. Goog's Feb, $200 put has a triple profits in three days. On 11/18/04, my purchase of KMRT's Nov. 115 and 110 put all have 500+% gain the next day due to CNBC downplayed KMRT merger with Sears. Earning play is also very important. Especially for this week, option has less premium compared with the stock price. Using option to speculate a high priced stock volatile change before, or after the earning report is a very good method.
    I want to look interested persons to form a team to do research, or to communicate idea to play options. I don't play straddle since the gain is so small. I limited my money in every position to control the loss. Any big gain can offset tens of option loss. An interested person can post his (her) option view or idea here to help each other. Since the time is so important, I hope any person can detail his idea including when to buy and when to sell. For example, PIXR has expected good earning. But the best sale time is before the earning release. Fortunately, I did that and kept my profits.
  2. By the way I sold Goog put this early morning, and bought Goog's Feb. 190 call around 3:00 p.m. I hope more people can join me to communicate different trading idea.
  3. Crevalle


    I was just looking at GOOG earlier today, trying to figure out how best to capitalize on it without purchasing options (I don't buy options). I was toying with the idea of bull put spreads, but I will decide once my current spreads on RIMM expire this Friday.

    Why do you expect GOOG to rally over the next month or so?
  4. I don't know next month. I am a short time frame player. I will sell the call when Goog has about additional 3 points rally from here, or in the early morning. I am doubt all sale pressure is gone. Now Goog has more share floating, its more hard to move fast. But anyway, Goog is a momentum stock. Currently, it has up momentum now.
  5. Crevalle


    How much did you make on the $190 calls you bought yesterday?
  6. 70% profits. I sold too early.
  7. Crevalle


    Nice job!

    Someone very wealthy (I forget who) said the key to his fortune was that he would buy too late, and sell too early.
  8. Triad


    I believe that was Bernard Baruch, at least the sell too early part.
  9. so if you sold for a higher price how do you know that would not be too early?

    Curious: how others define selling "too" ealy". Do you go simply by price or whether you sold within "x %" lower than the intra-day high.

    Couple examples: sold some April EBAY calls today and missed by .45-50 but later they came back that same amount and might well close lower than where I sold them. Last week I also sold some EBAY calls "too early" if I had the benefit of a crystla ball through today's aciton. but my view is and will be I can alwasy roll up and/or re-enter the contract again reagrdless if it may be at a higher price than my initial exit :D.

    Today sold some PLO deeps today and missed by .35 relative to the contract high so far today. But then rolled up a strike adn went into March.

    1. So did I sell "too early" on any of these ?

    2. How much hingsight is too much when it comes to exiting an options position for a profit... ?

  10. To see whether or not, Goog can touch $200 tomorrow.
    #10     Feb 15, 2005