My Options Play

Discussion in 'Options' started by Multioption, Oct 3, 2005.

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  1. hajimow

    hajimow

    Sold two Call 40 Nov HD for $1.40. Soory that I did not wait till $2.
     
    #701     Nov 10, 2005
  2. Saiff, thanks for your question. My trading approach takes into consideration the following:

    Comon sense - Probability
    Technical analysis - MACD, DMI, EMA, Weekly, Daily, Intraday!
    Money Management
    Trade Adjustment if/when necessary!

    BBY and APA may have the same technical outlook when called but they were/are different!

    So far, I have not picked any first or second grade trade. CHS, BBY, APA, PEET were all at equilibrium when called!
     
    #702     Nov 10, 2005
  3. HD CALL 40 Nov has been in a trading range since 10/31. Why did you choose to sell them now? HD hasn't set the tone for a serious correction yet. It could easily trade into $41.40. I guess you chose to capture time value decay now. Interesting trade.
     
    #703     Nov 10, 2005
  4. saiff

    saiff

    Multi,
    What does your analysis show for apa going into expiration especially considering a short week. Considering the adjustment, you dont think it will go below 60, but are you anticipating that apa will still rise up to 69 before expiration so you capture money on both ends or was the adjustment made to merely recoup your money, which you did, assuming it stays above 60.

    Thanks,
    Saif
     
    #704     Nov 10, 2005
  5. Thanks again for asking.

    My forecast of the trend is made out of technical outlook and probability of a higher high than the previous week. I plan to say something about APA trade after the trade is over, gain/loss irrespective. Nothing is guarantee in trading, I can only hope that APA drops as the technical outlook suggest. The stock has shifted in favor of downtrend; it was originally at equilibrium.
     
    #705     Nov 10, 2005
  6. No! I was kidding! I used to say that some years ago; and that's when a trade is adjusted. It means: the trade is a bummer - waste of time!

    But what if APA fails to trade back to 65? As you can see, traders can't do away with IFs:)
     
    #706     Nov 10, 2005
  7. qqqq

    qqqq

    #707     Nov 10, 2005
  8. interestingly enough someone just bought 1300+ Nov 70 calls on APA. I don't know if that's out of the ordinary, but it's the only trade I saw in that option today.

    - The New Guy
     
    #708     Nov 10, 2005
  9. Forumites,

    qqqq is the same person as uninvited_guest. He first posted his link to yahoo, then deleted it knowing that many of you have put him on ignore list!

    hi, uninvited_guest!
     
    #709     Nov 10, 2005
  10. But you bought $12,000 worth Calls based on your TA, now your TA suggests a drop, all in less than a week. :confused:

    Do you still own those calls? If so why? I thought your stop was once the calls reached OTM.

    Very confusing and reckless.
     
    #710     Nov 10, 2005
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