You guys might like this one as well...Since we were catching falling knives in this thread..... A little Lehman action over the last few days..... still holding some to dump into the close...(Still undecided....$26 would be nice)..... I call this a short covering rally and just a rumored down stock....Same play was made back in March by me and it was almost a 3 day double... And to the per ma bull (Stock_Trader...I never thought I would waste my time!!!!!.....You do know what capitulation looks like right.... 06-06-08 05:12 PM..CHART is BUSTED....you are funny man....CME at 412 and still holding....thats 30 points on 750 shares.....Just keeping chasing momentum friend....It works until it doesn't.....) If you don't know what capitulation looks like....Check Jan...2007 in the USO (Oil)..Chart http://www.elitetrader.com/vb/showthread.php?s=&threadid=128525&perpage=6&pagenumber=4 $COSTAverageMAN
Glad to hear you stuck with CME. Vols are nicely bid. Flies and short gamma are warranted here. The 350/420/490 fly is $30 mid for July; very, very cheap. I own it.
Still in... My Jul 430/440 and 430/450 verticals should be maturing now. (My june 410/420 is sitting well).
Very nice play Risk. It wasn't the call you made it was the trade. A great way to catch a falling knife without undue exposure.
Buying CME under $400 could be the "trade of the year." Whenever the economy goes into recovery mode ... I'd expect CME to trade above $700 again. My strategy is that it's a longterm hold to collect dividends and occasionally sell far otm calls to collect a little time premium while waiting for a $700 print.