listen i understand that you want to talk about me but this is not a subject of the thread grating posts.. no such problem .. sometime there are unpolite people,,, i ignore them.. easy
sss12, As you know, options versus stock involves trade offs. The stock will always do better if you get your move (dollar gain not ROI) and far worse if not because it's penny for penny and is 100 delta. Buying an option that expires in two days means that you have to be more right because time decay is falling off the table. OTOH, that option performs better if there's a big move since less extrinsic cost is lost. None of this is criticism, just splaining the trade offs. Props for posting a losing trade because you're one of the few people here who ever loses ANYTHING !!
Instead of getting upset, I would take this statement to heart, go back and reexamine my system. TEVA is an extremely risky bet, especially on the down side short term.
Actually the news of layoff and new migraine medication fremanezumab were known except for the announcement dates, so they were not unexpected. Both, once announced should be bullish for TEVA. The Teva charts seemed to reflect that.
It is a short term price action system that has 0 to do with news/fundamentals. If any one read the original post clearly it spells that out. This was not supposed to be a about my strat..just a comment on defining risk and max loss with options. Nothing more.
That's a hindsight conclusion. If the news was not unexpected then it was priced in and something specific in the release precipitated the large rise. Have you ever seen an earnings announcement where the company was expected to beat earnings, they did and share price got clobbered? It's always in the details.