Options Dream: BIDU 460 Call goes from .40 to $12...anyone get in?...this happened today...wow...anyone get in on any portion of this?
reading some of the posts here i can guarantee you some traders caught the whole move, too bad from the wrong side
That's not the most impressive. Bidu Jan 410 call was $0.40 on Jan/12, now it is $55. Did you catch the whole thing?
In hindsight, everything is clear. Could you have predicted on Jan 2 that Google would threaten to abandon Chinese market? The sharp increase in call value was partly due to this event, and I bet most people who longed calls before this event did so for reasons other than the Sino-Google dispute.
I don't trade BIDU, but looking at the chart, it was REALLY oversold the day before the news and I bet a lot options traders who play swing moves started back month call positions Tuesday and woke up to a very nice Wednesday. I feel sorry for the premium writers who didn't cash out, figuring with 3 days till expiration why bother.
did you??...ahh...I'd still say from .40 to $12 is great...most traders wait their whole life for this...in ONE day...wowo
Those of us who are glass-half-full sorts imagine each of the buyers cutting their losses along the way in a manner that keeps them within their acceptable loss limits until that last buyer the day before the news drives the price up $60+ wakes up and books a vacation in Fiji...