LTCM style short trade

Discussion in 'Options' started by KINGOFSHORTS, Nov 17, 2009.

Is this a path to ruin or instant short term profit

  1. Ruin

    2 vote(s)
  2. Profit

    3 vote(s)
  1. Delta .3797
    Gamma .6252 !!! DANGER !!!
    Theta .039

    Days to expiration 3 days.

    Premium 16 cents

    20 cents OTM call

    Is this a LTCM style trade?

    short call
  2. what is the ticker..

    try DECK 100 call. paying 80 cents should expire worthles.

    also GLD 115 cal.l 17 cents.. try it .. lol.

    and I forgot.. SHLD.. it has results.. the 80 call.. should expire worthless too. but I may have to chew my words. come tomorrow.
  3. It was a theoretical question :)

    But there are plenty of options that would fall in that category.

    A lot of retail folks Ignore Gamma and do not take that into consideration.
  4. ok. .got it... hey ..kingofshort.s. u used to recommend lot of last minute gambles.. I remember the GE one.

    Its been crazy this run. up.. i had a hunch Thu -Fri.. Options expiration will take out some steam. which it did.

    Now question is .. will the run resume on Monday...
  5. Yeah the Gambles are an office pool. Once and a while I get one going. First one was a winner. The last one I asked folks it is time to take the winnings and they chose to let it ride and lost.

    Although A lot of folks got burned on the Goldman sacks recommendation to load up on the GE DEC 16 calls at 60 cents.

    GS has no business telling retail customers to go buy an options position with price recommendation.