Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Straddles are the simultaneous use of both types of options (puts and calls) to minimize risk when unsure of the direction of a stock.
Profits are greatly reduced and of course the cost of commissions doubles in the process. Nevertheless, for smaller more modest and more secure profits they work for some people.
I don't like that strategy as it does not suit my trading style.
Has anyone ever done a straddle or a strangle? I have read about them but at this point never used them. I have only used Puts and Calls.
A word of caution playing SNDK with Call is definetly risky. The things I am going off of is TA. The RSI is at a stage where, in the past, it likes to bounce. I think it needs to fill a gap of 39.75 range. Once it reaches that area then it will be time to do a PUT order at 42.5 to be safe if you do a March07 or if you do an April07 you could go with a 40 PUT.
SNDK is in a downward channel producing lower lows and lower highs and at this point I see no reason to break that descent. It is time for a bounce though.
The tricky part of the Call option is making sure and picking the right day to enter. If it tanks really hard on Monday you need to pay attention to the candles and see what the tell you. IMO this drops no lower then 37.5 before rebounding. So watch closely the momentum, RSI, and candles. They have had a lot of bad news but the stock has reacted to that already. If you feel uncomfortable with the Call option because it is going against the trend then just wait until it gets up to around 39-40 range and short it.
My CALL order is set around 1.4-1.5 range for a Mar07 37.50 Call.
I think that a 35 or 37.5 Call on SNDK is the play on Monday....make sure and wait for the dip.
It was a good day for GOOG. Have a good weekend everyone and hopefully next week will be another good week.
GM! How's everything going?
I think it will be another large down day tomorrow. RSI on the NASD is high and the Fast STO just turned on NASD, AAPL, and GOOG. It is going to be a sea of red tomorrow IMO. Also, Crude was up today and broke the 50 MA. Not a good sign IMO.
Watch the potential Gap and Trap today on GOOG, AAPL, etc. The futures were up but just slightly. Also, oil has broke through the 50 MA which could mean it will start to trend back up. If that happens it could shift the market negatively. Just something to keep an eye on.
Have a great day! I have to run ... already late for work!
I agree and that is why I have not really looked into it. It is just too difficult and I would lose much more then I would ever gain IMO.
Your hours seem to favour foreign markets, but unfortunately they are so different in many ways from our NA markets that it would take quite a while to be functional enough to trade them (news, currencies, etc).
imo
ou
I can see how trading on the foreign markets would be difficult and if I had a 2nd shift job then I wouldn't have to worry about it, but unfortunately I have to work 1st shift and I have a hard time trading much during the day.
I hear that Etrade will offer platforms to trade overseas markets (Europe etc). My belief is that it is probably best to stick to one national market at a time. I juggle plays between US & CDA markets, but I get the net impression sometimes that I would do better if I concentrated on one of them.
Maybe I lack the memory skills to store data in my head of more than one market.
Good morning and good luck today. I am still holding GOOG call options and hopefully it will break and hold the 50 MA today.
You too and if you are ever interested in learning about them just check out the first few posts and ask questions. We will help you out.
Thanks for the invite...I wish I knew more about options, but maybe I can send a few others by here who do. Have a great evening...
Thank you and thanks for stopping by. Feel free to drop in and talk about options anytime. I don't have a whole lot of time to Mod but I am trying to promote options trading here at IHUB. It seems to be a type of trading that is not talked about too much here.
ced, your new board!
I am just now seeing it...very nice...and very good luck to you:)
ico
Ahhh...cool. I would like to get into international exchanges that trades after I get home from work, but don't know the first thing about them.
TSE is the Toronto stock exchange and they have puts and calls on different stocks. Interlisted stock is simply a stock like NORTEL (NT) listed on both CDN and US exchanges.
Cheers!
ou
You can post whatever you want here. I am not familiar with TSE or interlisted stocks. Can you explain it here for everyone?
Would you consider options on interlisted stocks or even just Canadian listed stocks (TSE)?
Thank you...I am hoping that it will start to take off and more people will look at options as a way to make money.
Great....thanks for stopping in.
I hope to make a few contributions in the future.
Great board CED. I have experimented with puts and calls in the past, but never really pursued it. A friend gave me a heads up tonight on your Board and I find it very informative.
Thanks
ou
AAPL was a 100% gainer today on all Mar07 Call options from 85-100!!!
Hey guys I seen a good chart on GOOG and it looks as if this one is headed back to the 500 range. I picked up some contracts on a Mar07 480 Call option this morning and it has worked out real nice so far.
http://www.investorshub.com/boards/read_msg.asp?message_id=17200422&txt2find=goog+
The yahoo boards are full of morons. They believe because the chip maker is dropping the price 30-40% that this will allow Apple to drop the price of their Iphone 30-40%. Someone needs to explain to them that it has more components then just the chip. I wonder how much out of the entire phone that the chip makes up? 30%-40%?
If it makes up 30-40% then that would be 500 (original price of phone)*.4=200
So if you take 40% off of 200 that is 80 dollars so if you take off 500-80 that is $420.
Which this is good news for Apple but still the phone is pretty high. I think they need to get the Iphone down into the 300 range before they start seeing transitions. IMO
Here is some good TA on AAPL.
http://www.siliconinvestor.com/readmsg.aspx?msgid=23295069
http://www.siliconinvestor.com/readmsg.aspx?msgid=23296373
MOMO will be great at that he has been bang as of late
We could use some TA folks over here helping on the charting. I need someone to let me know if they agree or not with my predictions or observations.
Yep I would like to get the hang of it. Wet behind the ears but the candles will bail my butt out
Hey Fourwinns thanks for joining us. It is a little different then pennies but still fun.
Hi ced!
Just landed here. Plane ran out of fuel and I just coasted in. All the best with your board. I have added it to favorites list and am ready to rock with ya all.
See some familiar player here. Hi Stocky and Momo.
Nice board GL Ced!
Hmmmm...AAPL's Bolingers are squeezing really hard. I don't know which way it is going to go but it is going to move hard. If you do a Mar07 80 PUT order and a Mar07 90 Call order you may be happy when it starts to move. You have 1 month to get out of each. If it runs to 95-100 you have a 10 bagger. If it runs to 70-75 you have a 10 bagger. If it doesn't break out over the next week sell out. You may lose 5-10% of what you put in it but that's it. Little risk for a potential huge return. Good luck.
Watch GOOG today if it dips. IT will create a margin call but you could pick up some 450 Feb07 Call options. They should finish in the money easy. IMO GOOG is going back up over the next week or so.
Another tough day. The feds came out and said no rate hikes. Market soared. Should have played long instead pf short yesterday.
Watching QCOM, AMD, and MSFT today and still on GOOG, AAPL, and SNDK.
Sounds good ced.....good luck
It's gapping this morning. IMO it will be lucky to get over 40.50, but if you got that call option yesterday you should make out about 30-40% ahead. I will be watching for a 40 Feb07 PUT option if it gaps up to 40.50 or so. You should be able to pick those up for 25 cents or so.
I picked up 110 Feb07 Call contracts for 40 dollars each yesterday before close. I am looking for an exit around 55 today in the AM.
Tough day today. Looks like a reversal has formed on SNDK tomorrow. A Feb07 40 Call option is a very good price right now. If you think it may go the other way you can always get a Feb07 Put option too. They are both priced well....if it moves one way or the other very hard you will get a double at least.
Good luck today everyone I will be playing ASF more then likely. Also, this is the definition of high risk options. Trying to predict which way a stock is going to go close to expiration. If you chose incorrectly you could lose it all, but if you chose right you could make 3-20 times your money. Just look at how much those Feb07 35 Put options made people yesterday on ASF. About 11 times the money and if it moves down more today it could get even better
Does everyone understand what happens this Friday after close for any Feb07 options you are holding? You may want to check with your broker. Etrade will create a margin call if you are in the money and hold your options. Also, on most stocks you are not considered in-the-money unless it is at least 5 cents above (CALL) or below (PUT) the strike price. If you are in a Call option the shares have to be bought on Monday. If you are in a Put options the shares have to be sold to you on Monday. If you are out-of-the-money this Friday you lose everything.
So the deal is if there are a whole lot more Puts in-the-money in open interest after Friday's close there will be a big sell off to cover the interest.
If there are a whole lot more Calls in-the-money in open interest after Friday's close there will be a big buying frenzy to cover the interest.
Just something to keep in mind.
One thing that options are good for is you can see if the majority is shorting or going long on a stock. You can see the positions change before your eyes and it is a good way to see where the majority believe the stock is going to move over time.
Followers
|
1
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
151
|
Created
|
02/06/07
|
Type
|
Free
|
Moderator ced70 | |||
Assistants Stock Lobster Greencake |
Posts Today
|
0
|
Posts (Total)
|
151
|
Posters
|
|
Moderator
|
|
Assistants
|
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |