Falcon , You can make money sure , but you can make more money trading stock options. I buy calls or puts when market is down , or up for good. But market volatility is down , and options don't move as much.
you "jumped" into CREE puts??! well.. how did that "jump" work out so far?!! what you really meant is You "GAMBLED" on those puts! wondering why you buy front month puts rather than February. What's the thinking on that?
It clearly was...guess he didn't get that when I said I jumped into it.....just like how I jumped into GS pure earnings play this time post earning run, and just like how I jumped into FFIV. Also jumped into 3 UNP 110 calls at 1.79 (clearly overpaid but we'll see if that holds tomorrow). Like I said though, only thing new is the options element. Everything else related to earning trades, reports, history, chart pattern leading into the earning results, and potential move and direction of the stock I've been doing it for years...Just don't want to be putting $15000 at risk per trade....just incase one of these earning trade results in a total crash. At least with options, I'm risking no more than couple hundred $1000 at most....look at GS $700 risk and now its showing unrealized gains of $1525 200% return so far. Clearly its starting to show that it is worth the risk. I think the goal is a 50% win ratio with a 2 or 3:1 risk ratio. So if my losers avg 70% loss, I need my winners to be at 140% gain consistently to make a decent cut. Not quite there yet as I have APOL at 34% and CREE was 3% gain compared to FSLR loss of -51% (although FSLR was actually not an earning based play). I'll close out GS, UNP, and FFIV by weeks end and I'll see if I can stay that course.
bought back FFIV short Jan 120 call at $1.10, closed out UNP jan 110 call at $3.10, and closed out GS jan 100 call at $6.05.... just want to focus on ffiv jan 110 call now.
Guess I'll call it jumping in and out from now on. Jumped out of FFIV Jan 110 call and on the spread profit is 381.15 on the trade. Got 2299.07 on GS calls, and 367.10 on UNP calls. All cash now sitting at 4736.17. I think I'll put a play on GOOG and ISRG today. Screw that, was going to skip these earning plays but with extra profits comes extra risk taking possibilities. I usually buy 10 GOOG shares at most with 1/2 on margin too, so this one will be a little different this time around.
Thanks! I'm getting shivers from GOOG. Looking at GOOG call spreads....beautiful chart set up and I know GOOG's earning history. It's a matter of how much risk (I'm thinking $1500 on this one with expiration tomorrow too). Still, I have 3 1/2 hours to think about this play.
Pulling it in again. Goog 665/675 call spread cost me $2.30, and also PH 85 calls at $2.50. Over $1500 in play, that's it for me this week.