Discussion in 'Options' started by nitro, Mar 30, 2010.

  1. nitro


    These are theoretical trades. Accurate based on realtime data.

    L 6 AMZN 4/17 145C @.85
    S 100 shares of AMZN at 136.02
  2. nitro


    Amazing AMZN options. It was clearly undervaluing these options at that time.

    It is hard to believe there are opportunities like this. I have to start scanning for them. Still too early to tell, but that was very interesting.
  3. look at BIDU pretty pricey at 600, LOL.
  4. nitro


    Surprisingly, my system says there is nothing undervalued in BIDU NTM options at this point. There may have been earlier. I will look at it later after the market closes when I replay to the tape to see if there was anything there...
  5. I didn't mean from an arb, its just that the stock has run mightily on the heels of GOOG pullout from china. I would look at june puts.
  6. nitro



    Ok. These options have a wide B/A spread. Plus the stock has a wide B/A spread. If the puts turn into winners, the B/A spread of DIM options on BIDU is insane. Looks like the B/A spread on DIM SPX options.

    It could work, but it requires more dexterity than most have to manage that B/A spread. I have automated programs that do this and I still don't like wide B/A spreads.
  7. Basically a synthetic ratio long strangle. I assume you placed the short sale and the long call purchase at the same time. Total cost of position (not including commish) is $510.00. Break-even points: Upside 147.35; downside: 130.00. Obviously need a bigger move downward to break even. So, great trade if you believe AMZN takes off above 147.35; if it doesn't move, then you lose the 510.00 or some fraction thereof; if it drops below 130 (over a 4% move), then you are good to go.
  8. nitro


    No such thing man. It is a daytrade, and possibly using the option to scalp gamma ontop of the edge I am getting on this trade.
  9. ammo


    i was short bidu for about 2 weeks via options and it wouldnt go down, resistance at 600
  10. Bought the bidu april 640/650 put spread at 4.20 for potential mild negative surprise out of goog tonight. Small stuff.
    #10     Apr 15, 2010