Casino play of the week. Come and get it. part II

Discussion in 'Options' started by KINGOFSHORTS, Jul 6, 2009.

  1. New play, this one is General Electric. The last play was a winner (C options).

    Here is a super Gamble opportunity for you. Thanks to low IV

    Buy 20 call options on GE, Strike price 13 with expiration day of July 18. One day after earnings.

    GE announces earnings 8:30 on thursday.

    Option is priced 6 cents ask. Check tuesday but wait about one hour for trading to settle.

    If GE earnings are decent you should see quick pop over 13 so your option ends up with intrinsic value.

    so lets do the math

    20 contracts (20x100 = 2000) = 120 dollar's (no big deal, lunch money or 120 lotto tickets etc..)

    add your commish of course

    If GE earnings are decent you should see a pop to mid 13s and get some nice intrinsic value

    net you 1000 buckaroos (minus nominal commish)

    worst case you lose 120 bucks or so if GE posts bad earnings.

    You can make it a little office pool and everyone contributes a fractional ownership of the bet, print out the play sheet with the horses I mean strike prices.

    It will be like betting on Mine that Bird at the Kentucky Derby. GE is definitely the Mine that Bird of the equity market, all odds against and bets are cheap.
  2. So far Mine That bird is behind by 4 right now and not much time left for the end.

    Got in at 2 pennies. 100 contracts.

    Cost 200 dollars for this high stakes bet.

    200 dollar + 10 dollars commision + (75 cents x 100) = total cost for this gamble 275 dollars.

    This is it folks. The big stakes horse race betting on the most unlikely philly but if she crosses the line the winnings can be big.

    Delta on this sucker is .006 Which pretty much means no one on the planet earth (except a few gamblers) expects GE to go to 13 next week.

    Calculations indicate on earnings day if it is ATM (13 dollars) value would be 14 cents

    .14 x 10000 = 1400 dollars. winnings

    And thats just ATM!!

    If they blow out earnings

    and it hits 14 bucks.

    Winnings of 10,000 dollar's Plenty for the strip club and then some.
  3. buddy.

    i like your strategy.. also you are giving ideas of opening an office pool . I have done that for lotto.. but heck. this is 100 times better.. lotto . forget it.. you have better chances of getting struck by lighting 4X times than winning the lotto ..

    about your trade:
    200 dollar + 10 dollars commision + (75 cents x 100) = total cost for this gamble 275 dollars.

    you need to use OPTIONShouse for some "lotto trades".

    10$ flat.. what can I say.. this wud have costed u.. 200 plus 10... 210 $.. cool .. isnt it....
  4. interesting dice roll, good luck
  5. Hmm that optionstrade for a lotto account sounds interesting :)

    So far GE is pulling ahead of the pack by .63th length of the track, all it takes is that one last hurdle and we are good to go.

    GE still has some life left, lets see if Thursday she brings a surprise. 13 will cross if earnings are solid.
  6. thebubs


    took you lotto advice bought 12 strike for 9c today, come on hard eight, mixing metaphors, craps refrence
  7. Looks like this old Philly just keeps pushing ahead towards the finish line Right Up a bit from 2 cents to 9 cents.

    The question is, DEAL or NO DEAL. Take your winnings now or let it roll and see if she breaks 13. Today it was NO DEAL.

    Clock still ticking, she might be ahead but all it takes is one mishap and its all over.

    If GE rises up 10% more in the next two days it will be 46 cents ITM

    Lets see if she holds in the mid 12s thursday and we get Good Earnings friday to break the impass and get this in the money for a slam dunk.
  8. I got in on the game for 50 contracts 3 cents.

    should I cash in or wait for friday??
  9. Why did you buy them?
    What was your plan?
    Why has your plan changed?
    Is this an investment or gamble (in your mind)?

    Why would you care what anyone else thinks?
    Why can't you make a decision?

    These ae important questions. If you anticipate being an option trader for longer than a short time, you must know the ansers to these questions

  10. I'd dump the calls at $0.15 considering you were wrong on the reporting-date and the vol has risen. GE reports tomorrow.
    #10     Jul 16, 2009