but dagnyt speaking purely on volatility, in this case the IV/HV really isnt that bad. If you look at the IV today, it didnt "crash". I didnt plug this into my model, but if rimm moved a few dollars UP, the IV would dropped more, however i think FF still could made money. What i am saying is the IV drop will not overcome delta/gamma in this case, if rimm moved up or even if the price stayed the same, his loss from IV drop would not be a big one.
Very clear picture here. 10 green out of 36, very bad odds. Can it be played , buying calls/puts 2-3 weeks before earnings then selling right before earnings...better to do straddles? Has anybody ever studied this?
I don't know... FF but when I saw this thread and that YOU started it I went UH OHH...part of the problem is that you consistently use options to make directional plays. Options by their very nature are hedging plays. If you thought RIMM would go up then the PROPER option play would have been a call vertical....not just an outright long call. At some point in time you really need to study and understand what options will or WILL NOT do for you. In the future if you want to make a play on a stock use the stock forum and say LONG XYZ or SHORT XYZ......not use the options forum to place your bets.
You picked up calls right before earnings on a high flying stock. Even if you had made money, this is not trading, this is gambling. If you are going to continue gambling, you are better off just closing your account and donating all of it to charity. You help a good cause and you get tax deductions.