In order for the reader to grasp that it's sarcasm, the writer needs to include a hint like a grin, a wink or possibly, a sarcastic comment. Writing "long strangle. buy the 132 puts and buy the 154 calls" contains no indicaztion of anything other than a trade recc. As for your suggestion making sense, the assumption is that since you posted it with no comment attached, one assumes that it made sense to you since that was your response. To me, it's nonsense since first of all, the OP is an idiot and posts ridiculous things. Second, how in the world would he be able to rationally project a range of $132 to $154 on a $134 stock? And given that your suggestion was go long a 132p/154c strangle, it's not unreasonable to expect that the stock could drop $2 and go ITM. So all in all, this is a ridiculous chain.
Actually, the problem scenario is real. In the real case, expiration was yesterday, the problem was encountered on Friday March 06, 2009 (15 days before expiration). ABC stock is related to a very well known stock. To avoid biais, I chose not to post the actual stock in the original post.
ok, I see what you mean. I thought people would recognize that ridiculousness of the strangle suggestion, but I guess not everyone did. I didn't think anyone would really consider buying the strangle when vol is not expected to rise.
You would be surprised how many undereducated option rookies believe that your suggestion was excellent. They believe buying those specific options - under the scenario given - is the best strategy. This is a novice board - for the most part - and such answers are best avoided. You never know who is going to read something bad (RFT advice, for example) and act on that advice. Mark
Why you did not take your answer, and alter it a bit so that the bad parts become good parts? You are on a good track if you do so. Do not be impressed by everyone, as some write a lot of wrong things, and pass for self-appointed experts on this forum. Below is an example, from a person on my ignore list. I would not have known about such mistakes if you did not quote her. Look at the data I gave about ABC stock, and analyze the latter quote. You should find that everything written in that quote is false/wrong. It shows that that person is an idiot in facts, and what she is posting is at best hot air possibly emanating from putting herself in my ignore list. The ABC stock I posted is not any stock. It is an actual example which I did not post so far, so that readers can reason, and later compare their reasoning to facts--- in addition to being a set up for ignorants, idiots and trolls. More will come later after you have had time to reflect on the wrongs in that quote.
The Internet Troll manual defines such behavior as PRETEND IGNORE. While the troll pretends to ignore you, he can't avoid responding to your comments - usually speaking in the 2nd or 3rd tense since "I" has very little meaning in the context of desperate need for approval. LOLOLOL
Time to show facts that show the truth. You will now realize how stupid and idiot that troll is, while he is thinking he is not. Consider ABC to be two shares of SPY. Therefore price of ABC stock is twice the price of SPY. Therefore writing that ABC trades between $132 and $154 in one week, is equivalent to stating that SPY trades between $66 and $77. When written in ABC stock terms the idiot troll will find it not ok, but with SPY he would find it ok. Do you see the contradictions in his head? Now what was the price of SPY on March 06, 2009? Answer: SPY was around 67, or equivalently $134 in ABC stock price units. What was the price of SPY one week later after March 06, 2009? Answer SPY around $77. The equivalent of that price in terms of ABC stock is $154. Therefore, writing that ABC trades between $132 and $134, not only it is logical, but it is fact, because SPY traded between those two numbers (divided by 2). So this idiot fights with facts, and he still think he is intelligent, because he probably make some cents from the market, not because of his intelligence, but probably because he is lucky, and/or the market is too forgiving as there might be more stupid people than him in the market. Now Mr. Troll: you cracked a rock that looked to you like an apple. Do you want now to lose your artificial teeth as well (assuming you are not toothless)? Please make sure to PM your response because I have you in my ignore list and cannot read what you write unless someone quotes you, and send me your message. PS: I know what your next move might be, and if you write what I think you might right next, then the hammer is already ready for you.
Has anyone noticed that every time I post, our sad little poster responds to my comments and pretends that I'm on ignore? I guess that trolling for ET noobs to pay him for option advice isn't working out too well (see his chain on Option Mentoring), But on the bright side, he provides us with entertainment and amusement when he chases his tail in convoluted circles. ROFLMAO (at him, regularly)