Options: Low Cost Investing

[New-born baby]

Huge-ites:
We would like to start a thread that would post some option plays that would offer low-cost investing with a larger margin of safety that merely purchase an equity. In addition, it is hoped that this thread will be a vehicle to expand your universe of investing knowledge. So with this little introduction, let's get started!

[New-born baby]

Let's start here

Here's a link that you may want to copy to your favorites list:

http://platinum.optionetics.com/yhmain.htm

This link allows you to find/test out some excellent options plays. Just type in your security, chose a bias and the volatility of the stock, and then click on the type of play that fits that type of volatility. It is easy! Look at this:

[New-born baby]

Here's what it looks like

When you click on "Perform the search", here's what you get:

[New-born baby]

BMHC: a sample

Look at this sample of how options can produce a lowcost profit.

[New-born baby]

Spike, where are you?

Now didn't that BMHC work out nicely?
So, in a bearish market, if we could have all the symmetrical triangles the MM Forumites could find posted here, we'd have a great watch list for put buying. And all the descending triangles would also be great options plays.
That's my problem: finding the triangles.

IIC (or others):
Do you have a formula to find the triangles?

[New-born baby]

BMHC: covered

BMHC hit the $74.90 mark, so the put was covered. Took $3 profit. See how greed burns? Had more than $10 in my pocket!

[Karel]

Hi New-born, the horrible thumbnailer hit your thread. Please keep your pics about 700 px wide max!

Regards,

Karel

[New-born baby]

BIG Hammer!

Hi New-born, the horrible thumbnailer hit your thread. Please keep your pics about 700 px wide max!

Regards,

Karel

Karel,
I bet you swing BIG, BIG hammers when you hit those thumbs!

[spikefader]

Awesome thread concept New Born! I'll be an active participant

[New-born baby]

All heart

Awesome thread concept New Born! I'll be an active participant

We love Spike around here! We welcome your posts!

[Karel]

Now didn't that BMHC work out nicely?
So, in a bearish market, if we could have all the symmetrical triangles the MM Forumites could find posted here, we'd have a great watch list for put buying. And all the descending triangles would also be great options plays.
That's my problem: finding the triangles.

IIC (or others):
Do you have a formula to find the triangles?

What about this as a place to start: http://stockcharts.com/def/servlet/S...000]![yq_eq_1]

Not all PNF triple bottoms will be descending triangles, but it narrows the search down a bit.

Regards,

Karel

[New-born baby]

What about this as a place to start: http://stockcharts.com/def/servlet/S...000]![yq_eq_1]

Not all PNF triple bottoms will be descending triangles, but it narrows the search down a bit.

Regards,

Karel

Karel,
You'd be wonderful! IF***IF you didn't carry such big sledge hammers to mash my thumbs all the time!

THANKS!

[New-born baby]

Wfmi

Here's a play for WFMI:

WFMI is (MIMO's?) Pick of the Year
WFMI goes exdate for the $4.34 divy on Tues, 11 Jan 2006.

Play #1: Buy WFMI here at $77.10. Collect $4.34 divy for the 1st quarter, plus whatever divys WFMI throws on the board hereafter for 2006.
SELL the JAN 2007 $80 calls at today's price of $9.30.

Total to you:$16.54+
$4.34 + other divys (I figured zero just to be ultra conservative)
$9.30 for the calls
$2.90 i.e. $80-77.10= $2.90 IF WFMI reaches $80 by next Jan.

$16.54 profit for an investment of $77.10 is 21.45% IF WFMI reaches $80

[mimo_100]

Here's a play for WFMI:

WFMI is (MIMO's?) Pick of the Year
WFMI goes exdate for the $4.34 divy on Tues, 11 Jan 2006.

Play #1: Buy WFMI here at $77.10. Collect $4.34 divy for the 1st quarter, plus whatever divys WFMI throws on the board hereafter for 2006.
SELL the JAN 2007 $80 calls at today's price of $9.30.

Total to you:$16.54+
$4.34 + other divys (I figured zero just to be ultra conservative)
$9.30 for the calls
$2.90 i.e. $80-77.10= $2.90 IF WFMI reaches $80 by next Jan.

$16.54 profit for an investment of $77.10 is 21.45% IF WFMI reaches $80

NBB,

OK, I'm game. You wrote:"WFMI is (MIMO's?) Pick of the Year"

Where did this come from?. LOL

Tim

[SledDawg]

Now didn't that BMHC work out nicely?
So, in a bearish market, if we could have all the symmetrical triangles the MM Forumites could find posted here, we'd have a great watch list for put buying. And all the descending triangles would also be great options plays.
That's my problem: finding the triangles.

IIC (or others):
Do you have a formula to find the triangles?

NB, I'm looking at it for the first time, but Trade-Ideas (recently added to my ScottradeELITE as a freebie) has alerts for triangles and reverse triangles (broadening tops or bottoms) that can be filtered by adjusting the number of hours of trading the program reviews. Is that something like what you're looking for? Anyone have any experience with Trade-Ideas?