Hot Pick Of The Day

[New-born baby]

Goog

GOOG really didn't take off after earnings announcement. I wonder how strong it will be in two more weeks. Those out of the money puts look attractive.

[Rob]

What do others think about their value here?

For GOOG Aug. $350 puts? Dude, I wouldn't give you a red for one.

[New-born baby]

For GOOG Aug. $350 puts? Dude, I wouldn't give you a red for one.

Rob,
You're a nice guy, and recently have taken a lot of guff from me with real grace. I compliment you on your gracious spirit. I also hate to add more junk to the list . . . But I just checked out the PnF on GooG. Has a bearish target of $332. Had a double bottom breakdown on 13 July 2006. In short, I would be bearish on GooG at this time.

Why do I mention it all? To save my friend Rob some dough. I'd hate to see you get stung. Of course GooG has a great option chain, and there is lots of protection with it. And for 60,000 red cents, you can buy those Sept $350 puts. I think they may prove to be a bargain. I myself am strongly considering buying some GooG puts, although I do not own the stock.

Now I feel better. My conscience is cleared. You know what the chart says.
Have a great weekend.

[New-born baby]

Rob

Rob,
You really know computers, etc. How do I get that AXR poll off of this thread? I'd like to move it to the trash ASAP. Any help you can offer will be much appreciated.

[New-born baby]

Btu

Today's very bearish action on BTU has further reduced the PnF target to $30. I added to my short positions on BTU by selling more out of the money calls ($50 AUG calls). I think it wise to watch BTU action for some kind of bounce, and then further short the calls, puts or stock. ACI is an even better short candidate being she is the weaker sister.

[New-born baby]

GooG

GooG $600 call option for Jan 07 sells for $225.00. That's right. Your broker will give you $225 to buy GooG this coming Jan at $600 from you.

[billyjoe]

New-born ,
Could you look at a chart of SIX and tell me if it's as bad as I think it is ? Would you call it a "dead cat bounce" ? Thanks

-----------billyjoe

[jiesen]

GooG $600 call option for Jan 07 sells for $225.00. That's right. Your broker will give you $225 to buy GooG this coming Jan at $600 from you.

Yeah, but that's $225 per contract, or 100 shares of GOOG. So if GOOG happens to double to $800 by Jan, you're out $200x100, or $20,000. Not a great trade-off if you didn't happen to own 100 shares of GOOG also. Even if you did, you've then sacrificed half of your profit ($20,000) for a $200 gain. Of course this is just hypothetical...

[Rob]

Rob,
You really know computers, etc. How do I get that AXR poll off of this thread? I'd like to move it to the trash ASAP. Any help you can offer will be much appreciated.

I have a highly technical explanation as to how this can be accomplished. Below is a numbered list which must be followed precisely. If you leave anything out, the chances of it working are practically nil.

1. Ask Karel to do it.

You see, one needs moderator privileges, which I do not have here. I hope you find this information helpful.

[RL]

NB hope you can give me an answer to this. Cramer talked about the number of put options on several stocks. Do you know where I can get this Info?

[jiesen]

NB hope you can give me an answer to this. Cramer talked about the number of put options on several stocks. Do you know where I can get this Info?

Ray,

I believe the info you're looking for can be found on Yahoo's "Options" option:

http://finance.yahoo.com/q/op?s=GOOG&m=2007-01

It shows you all of the puts and calls available, as well as the volume traded and open interest for each. There are probably better sites than Yahoo! for this though, I can get the quotes through Scottrade. But since NBB trades options a lot more than I do, I'm sure he could tell you the best place to get this info (hint: Yahoo is quick and easy, but often wrong).

[spikefader]

NB hope you can give me an answer to this. Cramer talked about the number of put options on several stocks. Do you know where I can get this Info?

Hey RL, (and other options researchers) you may find the "maximum pain theory" options stuff interesting. Go to http://www.iqauto.com/cgi-bin/pain.pl and enter a ticker. The result of the search will give you the value representing where the most put and call options will expire worthless. Some traders believe Max Pain can be used to increase the chances of success in trading although I've not actually seen consistency in the research I've done. I suspect reliability increases as the volume of options traded increases. But even then there can be special circumstances like big news or unusual bullishness/bearishness that will affect the reliability. But it's interesting stuff to think about anyway. Anyone here heard of Max Pain theory?

[RL]

Wow! there, Jiesen and Spike thanks for your reply to my question on options can not believe how you guys want to help someone It sure Is a great feeling. Now If I can just undestand what I'm reading.

[New-born baby]

Max HeadPain

Hey RL, (and other options researchers) you may find the "maximum pain theory" options stuff interesting. Go to http://www.iqauto.com/cgi-bin/pain.pl and enter a ticker. The result of the search will give you the value representing where the most put and call options will expire worthless. Some traders believe Max Pain can be used to increase the chances of success in trading although I've not actually seen consistency in the research I've done. I suspect reliability increases as the volume of options traded increases. But even then there can be special circumstances like big news or unusual bullishness/bearishness that will affect the reliability. But it's interesting stuff to think about anyway. Anyone here heard of Max Pain theory?

Spike,
I have heard of the MaxPain theory, and yes, like Max Headroom, I believe in it. And furthermore, I take it into consideration as the expiry time approaches. Sometimes I dump calls I have sold to "lock in the profits" and avoid the pinch of a race to the MaxPain point.

[Rob]

Buy Those Puts At Your Own Risk

I also hate to add more junk to the list . . . But I just checked out the PnF on GooG. Has a bearish target of $332. Had a double bottom breakdown on 13 July 2006. In short, I would be bearish on GooG at this time.

New-born, need I remind you? ....

I don't always trust the PnF chart targets. Last month GooG was supposed to hit $260; instead it hit $440 . . . .

Here's something you can hang your hat on: