Options: Low Cost Investing

[New-born baby]

Naw, Spike!

Spike,
No regrets here. We do the best we can for everybody, and in the end, everybody has to make their own decisions. I made mine, and I am happy with it

I haven't seen/heard any numbers yet, but I noticed GM is down .95 in the
pre-market. (I expected this). I've got to hear what the profit was to make a judgment on whether the chart will go bearish now or not.

[Adam]

Thanx NBB,

JLG took a jump today. I'm over 40% profit but I was at a meeting for four hours this afternoon so I didn't see it make the late move and haven't sold yet. Trying not to be a pig.

[spikefader]

Doing a GOOG earnings play today folks.

Strangle with .GOOBT (Feb 600 calls) and .GGDNT (Feb 300 puts) @ $0.65 for each.

I suspect we're gonna see a gap and trend for GOOG whichever way it goes; $350.00 or $500. And I doubt it'll take longer than a couple weeks to do it.

Whether long or short the stock, I'd recommend hedging

[New-born baby]

Doing a GOOG earnings play today folks.

Strangle with .GOOBT (Feb 600 calls) and .GGDNT (Feb 300 puts) @ $0.65 for each.

I suspect we're gonna see a gap and trend for GOOG whichever way it goes; $350.00 or $500. And I doubt it'll take longer than a couple weeks to do it.

Whether long or short the stock, I'd recommend hedging

Nice, costless collar on GooG. The only fear I'd have is being away from the computer and she drops back down to $290

[spikefader]

GOOG halted. That can't be good.

My puts gonna rocknroll if it's gap-bound

[spikefader]

...suspect we're gonna see a gap and trend for GOOG whichever way it goes; $350.00 or $500. And I doubt it'll take longer than a couple weeks to do it.

Whether long or short the stock, I'd recommend hedging

LOL oh mercy! GOOG smashed.

[spikefader]

[spikefader]

OK, GOOG strangle update time.

Wasn't a good put selection by me even with the gap - was just too far out of the money choosing those 300s which is disappointing considering the gap was what I was aiming at profiting from and I nailed that there was one Doh!

Charts and notes explain. I've made them detailed so others may learn from my error. Like I always say, options are tuff! At least for me they are! hehe

Next time I will play a simple straddle I think. Strangle with out of monies just gets too complicated with a big gap down that meets great market support. The gap down actually probably worked against me with the out of the money put position; just no demand in the face of bullish response to a strong stock like GOOG.

[IIC]

I think Near The Money is better...I called for Feb 45's calls and puts yesterday near the close on AMZN...Can you see how those would do at the open tomorrow?...I have some prices(I am just doing this on paper...worked pretty good w/ YHOO)...Not sure if I have legit prices from yesterday though... Calls $1.75...Puts $2.70...Thanks

[skiracer]

I think Near The Money is better...I called for Feb 45's calls and puts yesterday near the close on AMZN...Can you see how those would do at the open tomorrow?...I have some prices(I am just doing this on paper...worked pretty good w/ YHOO)...Not sure if I have legit prices from yesterday though... Calls $1.75...Puts $2.70...Thanks

Doug,
Big change in the prices today. Here's the end of day data for AMZN and most likely how they will open tomorrow morning. This is the complete Feb. chain.

[New-born baby]

Amzn

Look at that option chain. Must be run by the Mob. The $45 PUTS are $5 X $3.50. Most chains spread by .10 or .20; these crooks have $1.50. Looks like you'd best exercise your put rather than trade out of it . . . .

[skiracer]

Look at that option chain. Must be run by the Mob. The $45 PUTS are $5 X $3.50. Most chains spread by .10 or .20; these crooks have $1.50. Looks like you'd best exercise your put rather than trade out of it . . . .

New Born,
I believe that $3.50 x $5.00 is just the range between what is being bid and what is being asked. You can usually bid any demonination of .05 within that range and you may or may not get filled. With that particular put option it's just a wide range. I could show you any number of different chains for different stocks that would be .75 bid x .85 asked or .80 asked. It's just the range for that particular put.

[IIC]

Thx...was .05 off on the puts.

I'll watch the chain in the morn...Doug

[IIC]

Doug,
Big change in the prices today. Here's the end of day data for AMZN and most likely how they will open tomorrow morning. This is the complete Feb. chain.

Why would you think they will open like that???...I know the movement will not be point for point...But it certainly shoud change...Doug

[skiracer]

These are todays closing bid and asked prices. I was only assuming that this would be how they are going to open unless there is some news or some other factor that would influence the pre-market or afterhours. It was just an assumption on my part. I'm sure it will change once the market opens and the price either goes up or down or perhaps stays the same.