Sears Holdings

Since Sears is coming out with earnings next week before the expirations...it may be a good shot with one day left to buy a straddle.

Since there will be very little time value, the options will have huge gamma and pick up all intrinsic value should it move.

Any thoughts?

Harry

 

Harry, buying a straddle or strangle with one day left is a double edged sword. You can lose everything or make a killing. I think that if you know how to gamma scalp you can greatly increase your odds of success.

 

What do you mean by Gamma scalping?

 

Sounds like something from the old west times.

 

buy back months and keep 'em 'till evenin' before report...infact am thinkin of doin' it.

 

there is no step-by-step recipe for gamma scalping. Show me your first scalping move/action and I will show you future scenario where you might regret this move.

 

thanks for the book suggestion. I will look at their website and check it out.

Has anyone else read these?

Harry

 

You might turn into hairy knuckles if you follow Linda's advise.

 

tough cookie. got trashed tryin' it on aapl. was more of an hedgin' attempt but still turned sour.

 

I hear you , Bit. Low HV + collapsing vols = disaster .