ISRG earnings play

Discussion in 'Options' started by darwin666, Jul 21, 2010.

  1. ISRG reports earnings...

    instead of running up.. it has fallen this AM. 325s to 320..

    now. I am puzzled.. why . 400 calls are still commanding 70 cents.

    i am selling a few of them.. as per me free money.. this beast. wont bounce 80$.. unless. they are putting a Da Vinci in every household..

    anyone else.. selling puts and calls on this one...
  2. BTW. . my plan is to be short the 400 calls only for 1-2 days...

    i dont intend to hold them till actual Aug expiration...

    take 30-50 cents drop and get out..
  3. To have a "small" (on an arithmetic basis) profit objective can get you into trouble sometimes. :(
  4. 1) Nobody will aggressively "offer down" options with smaller premiums unless some type of uncertainty has been resolved.
    2) Those options do not have to be in-the-money for them to cause you headaches and "wallet aches". :eek:
  5. spindr0


    Don't rain on my free money parade!

  6. I hate selling pennies, but I gotta go with the OP on this one. Short 'em...
  7. I'll be the guy with the umbrella and pail. :cool:
  8. Not this time. 298 last.
  9. BTW. i have been in LOT of pain with ISRG b4.. once on earnings it popped 165 to 220. and I was short 210 calls.. got ruined. but from that onwards I have been very successful in taming this beast.

    yes.. true.. even if it had popped. from 325 to 360-370.. the 400 calls.. with entire AUGUST.. would be painfull.. probably.. 1.5 or 2$.. who knows...

    but for now. the beast is dead. .I was certain 400 strike. come what may would be free money... I will be closing them tomorrow. got 10 of them... ha ha.
  10. zdreg


    your numbers are quite a bit off.the 360 call option which was 35 pts. away at the close closed at 4.30. if the stock would have closed at 365
    the 400 option might have moved to 3.45

    using closing prices is very approximate since it depends when the last trade took place and the price of the stock at the moment. it also depends whether the trade took place at the bid or ask or in between,
    by the time one get's finished the 400 option is likely to be under 3.
    #10     Jul 21, 2010