Hi all, I am looking for a good option play trade idea... specifically, I am looking for opportunities where the odds look like 100:1 but actually it's about 10:1, etc. i.e. in a bet, if I lose, I lose small but if I win, I win big... Any good ideas for the current markets? Thanks!
Buy one of the weekly options on the Thursday before expiration. The odds are much better than your requirements of a 10% success rate. Buy 1 strike OTM. My pick of the week: GOOG Jun 2011 485.00 put Buy Thursday sell Friday. Paper trade this and see how it does. http://finance.yahoo.com/q?s=GOOG110624P00485000
Based on quotes at market close for a 1 strike OTM GOOG put the paper trade would be: Buy GOOG Jun 2011 480.000 put @ $2.45 http://finance.yahoo.com/q?s=GOOG110624P00480000 Close on Friday.
ForexForex, I am new to equities and options. Can you please tell us why did you choose GOOG for this trade? What kind of analysis did you do? It seems like you anticipated the down move in the UL, am I right here? Thanks inadvance for bearing with my noobish questions.
Now trading @ $4.50. Since last day of trading is today I would close it. This sort of 1-2 day trade every week with the weekly options should fit your requirements. Also check out the QQQ options, much cheaper.
remember GS in 2010 when the SEC lawsuit came out.. on expiration day LMAO.. puts that were trading at 2 cents went to 20 dollars