Exploring..... I bought 3 contracts of SNDK MAY 62.5 Call at 2.65. I will add to this position if need be. Will post my ITM trade(s) when initiated.
SNDK: -strong support ~$53..~$55 (from last Oct/Nov) -downtrend resistance at ~$57..~$58 to be resolved in 2-4 days -until then it still looks like a retracement (not yet a reversal) -volume doesn't indicated a turning point either -MACD and probably other divergences may indicate just a retracement for now Good luck with your trade!
Multioption, glad to see your new trade. Would you mind sharing some more information about this trade? For example, what would be your final position size? Why do you pick the May 62.5? What is your profit target and stock price target? Last, why only buy 3?
SNDK is my first far OTM options since 1996. I'm exploring the effects of gamma on delta, hence my reason for buying 3 contracts. Will add about 20-30 more contracts to SNDK 62.50 Call when trend reversal is established, not there yet as pointed out by cnms2. Profit target is somewhat difficult to project. I'll like to see the bid/ask on the option if/when stock climbs to 58, 59, or 60 by April 7th 2006.
SNDK's IV is above its 50% yearly percentile, but in uptrend before the 4/20 earnings report. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1017070>
Not sure if you were mocking me, Novel, but $500 at this point is substantial, considering my losses and opportunity costs I've incurred over the past 4 months. Like many, if not most, i recently learned about the options game, saw dollar signs and started throwing money at them thinking it was as easy as it looked. I'm 15k down, not to mention the 4 months of lost wages, perhaps 50k. I have 3k left in my trading account, and if it goes to zero, it's back to work for me So, $500 amounts to quite a lot. On the plus side, I have 5 million database records, and 100's of ways to evaluate that data (in Real-Time), and just today I've come one step closer to what might amount to my holy grail, or at least a way to profit at the game ...
pattersb, did you start trading options full time with only 18k? I would suggest to accumulate more capital before trading again.