Lottery Ticket - FAZ Call 75 Jan 2014

Discussion in 'Options' started by eldorado1, May 10, 2012.

  1. Ask is 2.66..

    better chances then powerball + I will have some downside protection on SPY butterfly spread.

    might buy one contract today.
  2. You could do a Jan 13 30-75 Bull Call Spread on FAZ for about the same 2.66 ~
  3. That's much more interesting then mine :)
    But spreads are wide, It would cost much more; so how about:
    VXX - Jan 14 30-50 bull call (1.60 mid price)
    or VXX - Jan 13 30-50 bull call (1.24 mid price)
  4. I bet you could get filled at the midpoint on FAZ Jan 13 - give them another nickle if you have to - it's not a trade you need to worry about slippage so much with IMO.

    At end of trade losing another 5-10$ won't make big difference compared to reward of 20+ bagger.

    If wrong & market doesn't crash make trade again next January for Jan 14 -
  5. True, and as the trading day started I noticed the bid/ask spread got tighter so I might really go ahead and give it a shot (still hesitating cause I promised myself to never go debit)
    Will go with the 30/50 strikes to reduce cost, Open interest is good too. Cheers!