Spike's Scientific Stock Analysis

[DSteckler]

<< Alot of folks are shorting this stock at these levels,I'd like to try a straddle play,Im thinking of shorting it at resistance and buying Feb 35 calls as the insurance. >>

That's not a straddle, that's a hedge.

A straddle is when you buy or sell an equal number of Calls and Puts, both having the same strike price and expiration date. An example would be buying (a straddle purchase) or selling (a straddle write) five Feb 30 Calls and Puts.

Straddle purchases are done when you're expecting a large move in the stock only you don't know which direction. The strategy is not profitable if the stock doesn't move much, at least enough to cover the combined purchase costs of the options.

A straddle write has potentially unlimted risk because you are selling naked calls in addition to selling naked puts. This strategy is profitable when the stock doesn't move much, allowing you to keep most or all of the premiums received by the sales. Because of the risk involved it takes a very high account balance/net worth/income, etc., for your account to be approved for naked straddle writing. Most accounts are not approved for this strategy for this reason.

[Thomrich]

<< Alot of folks are shorting this stock at these levels,I'd like to try a straddle play,Im thinking of shorting it at resistance and buying Feb 35 calls as the insurance. >>

That's not a straddle, that's a hedge.

A straddle is when you buy or sell an equal number of Calls and Puts, both having the same strike price and expiration date. An example would be buying (a straddle purchase) or selling (a straddle write) five Feb 30 Calls and Puts.

Straddle purchases are done when you're expecting a large move in the stock only you don't know which direction. The strategy is not profitable if the stock doesn't move much, at least enough to cover the combined purchase costs of the options.



A straddle write has potentially unlimted risk because you are selling naked calls in addition to selling naked puts. This strategy is profitable when the stock doesn't move much, allowing you to keep most or all of the premiums received by the sales. Because of the risk involved it takes a very high account balance/net worth/income, etc., for your account to be approved for naked straddle writing. Most accounts are not approved for this strategy for this reason.

Greetings,

Thanks for the info,

I am anticipating a big move,but not clear on the best play.The gaps below look tempting,yet the booming volume makes me think shorts could be wrong.

My concept is to take opposing postions initially with a technical bias giving an edge.My short would be set with a tight stop,and the calls need to be profitable if wrong.Still experimenting with a setup.

cordially tom

[IIC]

<< Alot of folks are shorting this stock at these levels,I'd like to try a straddle play,Im thinking of shorting it at resistance and buying Feb 35 calls as the insurance. >>

That's not a straddle, that's a hedge.

A straddle is when you buy or sell an equal number of Calls and Puts, both having the same strike price and expiration date. An example would be buying (a straddle purchase) or selling (a straddle write) five Feb 30 Calls and Puts.

Straddle purchases are done when you're expecting a large move in the stock only you don't know which direction. The strategy is not profitable if the stock doesn't move much, at least enough to cover the combined purchase costs of the options.

A straddle write has potentially unlimted risk because you are selling naked calls in addition to selling naked puts. This strategy is profitable when the stock doesn't move much, allowing you to keep most or all of the premiums received by the sales. Because of the risk involved it takes a very high account balance/net worth/income, etc., for your account to be approved for naked straddle writing. Most accounts are not approved for this strategy for this reason.

What is the difference between a Straddle and a Strangle?

[Thomrich]

"What is the difference between a Straddle and a Strangle?"

A Straddle could be very painful,a strangle is what my ex-wife is good at.

cordially Tom

[mystiky]

"What is the difference between a Straddle and a Strangle?"

A Straddle could be very painful,a strangle is what my ex-wife is good at.

cordially Tom

Tom -- that's a classic....I even forgot about the stock market!

[DSteckler]

<< What is the difference between a Straddle and a Strangle? >>

A few consonants....<G>

A straddle is a type of spread where you buy or write an equal number of puts and calls with the same strike price and the same expiration date. A strangle is a type of spread where you buy or write an equal number of puts and calls at different strike prices but with the same expiration date. For example, buy 1 Feb. 60 call and buy 1 Feb 55 put.

[IIC]

<< What is the difference between a Straddle and a Strangle? >>

A few consonants....<G>

A straddle is a type of spread where you buy or write an equal number of puts and calls with the same strike price and the same expiration date. A strangle is a type of spread where you buy or write an equal number of puts and calls at different strike prices but with the same expiration date. For example, buy 1 Feb. 60 call and buy 1 Feb 55 put.

Oh...thx...Doug(IIC)

[spikefader]

Fresh short signal a couple minutes ago. I won't add to YM short yet. I want more green out of it first.

[spikefader]

Greetings,
Alot of folks are shorting this stock at these levels,I'd like to try a straddle play,Im thinking of shorting it at resistance and buying Feb 35 calls as the insurance. I see 2 gaps to fill ,yet the volume could make them invalid,any perspective Spike? It concerns me that short seems so obvious to alot,thats why Id like to cover with a call,and keep the stop on the short tight.
cordially Tom

Hi Tom.

Not sure I'd be shorting something that's just had 2 high volume gap ups, booming on the daily and weekly charts. I'd be more inclined to buy the gap support! lol I got a long bias on it.

Not sure on the count, but it's likely in a c down or 2 down. Either way, the next one up should be impulsive or if it fails should fall quick.

You do have the 20day psar/mfi sell signal there yesterday...the r/r is probably what I'd question for a short here.

Best play might be a straddle with Feb 30 strike I think.
(HUEBF 2.25x2.50/HUENF 1.40/1.65)

Good luck with it.

[spikefader]

Spike do you agree on the count on this monthly chart? The middle line is Len reg

Yes. The 5th has a chance of truncating, looking at the little subwaves with 5.

[Runner]

Yes. The 5th has a chance of truncating, looking at the little subwaves with 5.

Thanks for taking a look spike. The monthly chart was taken from PETS

[spikefader]

Spike, do you think the "c" entry will be anywhere near 10910? I have a feeling this is where the DOW will retrace to before going higher.

No reason it can't do that. I've got a very tight stop on this swing short now. Intraday vector strengthening now. Thinking hurts right now lol

[spikefader]

Actually dmk,
Looking at that INDU chart, price may need to drop back and test that long-term green trendline from the 2000 high (10862). But who really knows if/when that's going to occur. Just gotta remain flexible I guess. I'll just follow my signals and it'll get me on the right side of the next move. But right now, not much reason to be heavily bearish on the market. This is just corrective down side, but I've still got a chance with this short to catch the 'c'

[Thomrich]

Greetings,

Sweet Heaven has anyone noticed HANS?

Unbelievable action,how high will she go?

The only stock you needed to own the last 2 years.

cordially Tom

[spikefader]

lol, yep, HANS a superstock! heh
I just glanced at charts and I think I posted a weekly channel turn up back Oct 31 that was the whisper. Look at those runaway gaps Tom. Those are not to be underestimated, including the likely one today. It'll be interesting where the 'booming' finishes. Unreal isn't it.