i just figured out IBM announces earnings oct 16... i just bought options for oct 19... smart guy i am..
BAD trade... i'm out... i forgot we are in earnings season.. not taking jump risk ... down like 15 bucks.. no big deal.. +SLD 1 IBM OCT 19 '12 + (1) 205 + (1) 220 - (2) 210 Call Combo 0.13 USD SMART 15:52:17 2.17 null
I'll be out of town for weekly OPEx..not gonna be able to trade the close this week... super gamma... where delta goes from .01 to 1 in minutes.. whats the gamma of gamma on that.. the rate of change of the rate of change... booooom My homeboys bachelor party.. fishing cedar key.. poker etc.. I'll be watching the close still... I wanna start recording gamma Changes in the last two hours of opex for close to the monies
Gamma explodes, but you can't pay for dinner out with gamma. Call goes from $2 to $1 and gamma jumps 3x.... price the expected move and the intrinsic value of the option at your target.
OK an announcement at the close .15 cent option to 10 dollar intrinsic.. that would turn 150 bucks into ten thousand .. call me a dreamer haha
my current under water positions.. 680/700/730 = .60 got in at 2.32 i would close this down.. but i think i'll get more for it in the next couple of days.. whats working 640/660/685 = paid 3.70 now at about 4.20 break even on both is 646.02 at oct month opex.. my plan.. exit the further otm fly on the next jump up.. hold other till opex or it starts pushing hard through short 660 strike.. current value of both.. about 4.85 i'm down a little over a dollar cumulatively..
i just realized i PDT'ed an account i'm trading for a friend by opening and closing this ibm trade same day.. currently PDT'ed on three accounts.. wow.. haha