Options: Low Cost Investing

[dmk112]

Hey dmk, just a thought, but for this type of play, buying a downgrade during weakness (where there are gaps below) might be worth buying a RXQMV put for $0.25, especially given the gap down at 10.72 might wanna fill. That way if you stop out cuz you're wrong and she drops fast to the gap fill over the next week before expiry, you should make a couple hundred bucks on that small $25 investement/insurance play. And if you're position bounces and moves for you, all you've lost is 25 bucks.

Spike, Yahoo is quoting them .40 - where did you get your quote from?

[spikefader]

Anyone???

How about options charts from here.
Or alternatively, you can go to an Historical chart within Quotetracker and put the ticker (eg .gopai) to get the chart. Also, you can get free backfill into your QT intraday charts by selecting prophet.net as your backfiller and right click the chart and 'fill as' option.

[spikefader]

Spike, Yahoo is quoting them .40 - where did you get your quote from?

It's not where that's important, it's when lol The stock was 4% higher than where it is now, so naturally those puts are asking more now...
but I notice that no volume traded today, and it's a light issue, so this isn't a profit-making play so much as a hedging one for your long. That's the only time you'd buy a low vol option I think; when you need to hedge against disaster, or looking for a large % move that will bring it 'into the money' and boost the interest in it. Those out of the money options for light issues don't trade much, and it can be tricky exiting cuz there are fewer bidders. A big drop to the gap; no problem. But if it doesn't move you may as well kiss your premium goodbye

So if you're still long the stock and didn't buy when those puts were asking only 0.25 then now you gotta bid to get that price or pay double (I see the ask as .50 now). Shoulda bought one when I said to lol just kidding.

[IIC]

How about options charts from here.
Or alternatively, you can go to an Historical chart within Quotetracker and put the ticker (eg .gopai) to get the chart. Also, you can get free backfill into your QT intraday charts by selecting prophet.net as your backfiller and right click the chart and 'fill as' option.

Hey...thanks Spike...Doug

[dmk112]

Spike, didn't see your post. Shux!

[dmk112]

DMK,
I've been looking at a post by Jim Smith, "Jims Cycle Trades JNJ".
I like the Feb. and April 65 calls.
The Feb. 65 calls , JNJBM, are .60 bid/ .65 asked. Closed yesterday at .61 and there are 37 days left to expiry.

The April 65 calls, JNJDM, are 1.30 bid/ 1.40 asked. Closed yesterday at 1.40 and there are 100 days left to expiry.
Yesterday the stock opened down and stayed down pretty much most of the day but gained some strength late in the day to close up .11 at 63.10.
I'm looking to buy some of both this morning. I'll wait to see how it goes after the open. Take a look at the weekly chart. Just starting the right side of a new cup coming off it's recent lows. I love to catch them at this point.

Ski, looks like J&J wrapped up the deal with Guidant and may be ready to rock now. Those calls are lookin' good right about now. Did you pick any up?

[Adam]

How about options charts from here.
Or alternatively, you can go to an Historical chart within Quotetracker and put the ticker (eg .gopai) to get the chart. Also, you can get free backfill into your QT intraday charts by selecting prophet.net as your backfiller and right click the chart and 'fill as' option.

Thanx again spike to the rescue!

[stocks54]

Option play for ELN

Hello,

Can anyone suggest what might be good option play for ELAN. I had $10 call options for Jan 2006. I sold them at $4.50 (I did sell them early).

Regards,
Stocks54

[Adam]

Hey Stocks,

Seems not to be many options traders round here. If I'd listen to anyone I'd be spike. I sold Some walmart jan 07 put options for a 36% profit today. I got a little nervous when it showed strength in the morning with the market down so hard. My others that rebounded today were LUV (curtusey of cashmaker) up 30% call options. Most of my options are at least a year off and have larger Intrest. My only short options are in WIND and JLG which is already in the money. JLG is strong, take a look, Just missed a good buy in. (I'm not making any reccomendations especialy on WIND, highly speculative)

I'm fairly new with the options trading but have done well with it. My only down position lies with a company in which I own options for semi-emtional reasoning. I do believe earnings are going to smash expectations. Terrible, I know, no emotion in trading. I'll let you know if it pays off.

These are not recomendations trade at your own risk!!!!

I don't track ELAN so I can't comment on that...but I'd love to talk about options.


Keep an eye on WBMD. I's four months into the IPO and the stock has more than doubled. I'd be weary of an option play due to very little liquidity. Gives you less chance to bail out if necessary.

[New-born baby]

Eln

Hello,

Can anyone suggest what might be good option play for ELAN. I had $10 call options for Jan 2006. I sold them at $4.50 (I did sell them early).

Regards,
Stocks54

Stocks,
I did not respond to this post because ELN is a wild thing. I have lost some change on this one, so I stay away. Spike could speak about it, but ELN has also burned him a time or two. My policy is to stand away from rattlesnakes and ELN.

Putting that aside, a "safe" options play for any stock that you think is rising is to buy the long term IN THE MONEY or AT THE MONEY calls. Look into the Jan 07 calls for ELN and see if there is anything that might fit your budget.

[stocks54]

Adam/New-born baby,

Thanks for your response.

Adam: I did post the same question on Spike's thread and he did respond to it. To be honest I am pretty new to options myself. Did okay so far. I lost quite a bit on Elan earllier but am HOPPING that Tysabri returns to the market and we will some run.

NBB: I own few leaps (07/0. Currently Elan options is 50 % of my portfolio. I am getting tempted to put more. I think I should definately hedge my position by buying some PUTS.

Best Regards,
Stocks..

[Adam]

Stocks,

I'd always worry any time you have a single holding that is 50% of your porfolio unless, you are absolutly sure beyond a doubt. I've lost much chasing bad money and to much in one place....Best of luck I hope it pays off.

[Adam]

NBB,

Got in the money JLGEJ may $50.00 options. Up 37% at this point. The chart looks strong as well as the #'s. Your opinion would be greatfully appreciated.

Thanx

Adam

[mimo_100]

IGA and IGD

NBB,



You probably know about these, but, just in case.

I ran into two Exchange Traded Funds, IGA and IGD.

Here is part of the IGD Investment Objective:

The Fund's primary investment objective is to provide a high level of income. Capital appreciation is the Fund's secondary investment objective. The Fund seeks to achieve its investment objectives by investing in a portfolio of global common stocks that have a history of attractive dividend yields and utilizing an integrated options writing strategy.

The current yield is 10.93%.

http://www.etfconnect.com/select/fundPages/global.asp?MFID=142101

Tim

[spikefader]

Couple of good GOOG support option plays:
Feb 06 $600 strikes for $1.00
Feb 06 $630 strikes for $0.75.

Cheap and limited downside. If it bounces here at gap support and trends nice it will pay real nice.