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Hi,
Wanted to ask about whether it is good to buy just CALL options on SPY(1 week expiration) say on Friday(which expires following week's Friday) and the following week is filled with earnings report announcement of SPY major components like AAPL, MSFT, AMZN, Fb etc. ?
My Analysis:
Since i checked the estimated EPS on these major components and they have beaten the estimates + these companies have been delivering record earnings if not record but atleast good earnings to beat analyst estimates(atleast AAPL). So if these companies are reporting the earnings is it wise to buy just single CALL option as mentioned above rather than a straddle(this is standard strategy for earnings)?
Confirming Understanding on Implied Volatility:
Standard options definition is higher the Implied volatilty higher the option pricing. But when i draw Implied volatility of say SPY on chart i see whenever volatilty is high(say VIX > 27 or so) the SPY tanks and whenever Implied Volatility is low(say VIX < 22 or so) SPY goes up. So will it be good to say just in case of SPY that high implied volatility meaning best to buy PUTS and low implied volatility meaning best to buy CALLS?
Apologies for big post.
Thanks in advance
VKOptions.
It's a great day...
It just feels like a truly nice and satisfying day.
I hope everyone is having a fulfilling weekend.
Just be cool -
and there's always the fine print to be aware of...
Any news posts should not be biased, should be based on facts, and should be shown/explained on how they would have a direct affect on the market.
Personal attacks are not allowed and posts will be deleted. Suspensions of posting ability will occur for infractions - there's just no need for arguing and displaced anger.
Knowledge is power... Posts should be based on that goal.
Must be some kind of mistake or something....
I thought you said this was an OPEN forum ?
nice mission statements...
if it was all soo easy, and profitable, everything green -
no oil - no coal -
all the limp wristed, leftist sissies, frolicking in meadows...
then capitalism would have already got it done.
but you already know that.
All these lofty plans, but no project planning, management and analysis to truly get from A to Z. Keep wishing, though...
again, check at how nasty a lithium mine is, but you don't want to face reality...
but you soon will, with Biden, who won't make it a year -
then Kamala - proof positive you can sleep your way to the top.
Read up on how China is now destroying Africa, already stripping it of the resources and heavy pollution where there is very little gov't to interfere with their progress.
Again, silly me with the reality.
Executive Order !..........Executive Order !..........
CANCEL / CANCEL / CANCEL . . . . .
Same thing TRUMP did 1st week in office
Long-live The Green Revolution !......BUY !.....
Solar-powered everything
Throw away the coal
Ding-dong the witch is dead.............
Nah-nah-nah-nah
Nah-nah-nah-nah
Hey hey hey . . . . . Good-bye
Vote for America - NOT Venezuela !.......Who wants to live in Columbia ?
nowwhat 2020
Stability? Civility??
That's what the left calls it when you allow the rest of the world to
Fukk you over at every turn. And that's what we're back to...
Paris Accord allows China to keep INCREASING its pollution output until 2030, while we pay immediately. No wonder the elite want it and will now ship jobs back there...
The keystone pipeline... Thanks Dementia Joe, for killing tens of thousands of jobs and making us again reliant on foreign oil, where they pollute more during the entire drilling and refining process. All in the first 2 days. and the left applauds...
Like we don't have pipelines already flowing everywhere across the nation!!
Fukken stupid, brainwashed leftist mofo's who cannot logically think about repercussions... And you wonder why China just came out and said we were rooting for Biden the entire time??!!?
I enjoyed T being a prick... we needed an asshole prick in there, to stop the world from continuing to fukk us over.
You wanna know who benefits from the US gov't - certainly not US Citizens.
Even the last stimulus package... why the fukk did the majority of the money go overseas??
Fukken corrupt politicians constantly getting kickbacks...
Biden is on record - on video of blatant extortion. Ukraine, stop the investigation into my cokehead son, or you don't get a billion dollars.
Fukken unbelievable...
Yeah, that's how I really feel
I am posting this here because
when I posted it onto another board, in response to users bashing Trump, my post was deleted.
The elite of the world are thrilled, not the common working class.
Those in Hong Kong already know oppression and know he was on their side.
It is the media, which is controlled by the elite, which has labeled him as the great divider.
We could list out many accomplishments, like
Peace agreements and no wars,
Demanding Europe pay what they agreed to, on military costs.
Knowing China is the true enemy and demanded action.
Knowing what has happened in the inner cities and why...
And now the elite are back on track with their One currency and
One world government game plan...
You know taxes will increase substantially,
You know controls will increase substantially,
All in the disguise of, "What's best for all."
And deep down, you already know, you won't get good value for the money taken.
Exactly how long can a nation survive with many of their people demanding money
for producing nothing? With many demanding we financially take care of the those
in poverty in other countries.
Soon enough, in less than a year, once control is truly implemented,
Then the negative repercussions start...
You thought 2020 was bad... In comparison to what will happen in the next 4 years,
It may be the best year for a long, long time.
Obviously the list could go on...
Look at the stimulus package.
How much went overseas?
And 70 million for a gender study in Pakistan or something? What??
Which congressional members are getting kickbacks for that move?
America is being used as a global piggy bank, even though we're already
technically bankrupt.
Nothing happens by accident in politics.
In order to make a transition to a new system,
Major problems have to be created with the current system first.
That's where we're at.
It makes me sad and worried for what my children will have to endure.
I am posting this here because when I posted it onto another board, in response to users bashing Trump, my post was deleted.
QQQ puts bought -
Jan 15th 315's @ 3.97
IWM puts doubled here -
the 1/15 206's @ 3.61
HUGE opportunity for big gains -
not sure who the longs think will be buying from them,
once we start to rollover.
IWM puts bought
Jan 15th 206's @ 4.02
SPY Puts bought -
Jan 15th 376's @ 3.74
Irrational blowoff top today?
A long article, but
Very good.
https://www.peakprosperity.com/dave-collum-2020-year-in-review-part-1/
When it comes to the market, we know
the things that should have an effect on prices...
Those things haven't, they have just been noise, but the noises are at deafening levels...
It's become a battle between reality and artificial support.
All that can be done is to watch the indicators for signs... And wait for the signals to
show future direction.
Trump was correct in his veto of the stimulus package.
A 6,000 page bill was submitted to Congress and they were expected to review it and vote on it in less than a day?
The bill was found to be packed with money going to other countries and leftist pet projects?
These are troubling times indeed.
Pelosi has admitted she has been delaying and rejecting help for US citizens since July,
All for political purposes... Just to cause as much pain and chaos as possible, and try to blame it on Trump.
The problem the Democrats now face, the problem which has been building for years, is that the majority of the population clearly sees how malicious the leaders of the left are.
This week I will be watching SVXY
as a possible pre-indicator of a break to the downside for the market.
10 day 15 minute
We can see how it broke its short term support at 41 on Friday.
2020
OMG, where's the proof!! All I hear is a bunch of whining! Tell it to a judge. Oh wait you have and they laughed at you. You've been brainwashed and your too stupid to realize it. Your willing to look the other way while your neighbors are abused because your making a buck. You should be hiding right now ashamed. The honorable people of this country are looking for a class action suit against your leaders for perpetuating this FRAUD.
By the way I laughed when you initially posted all your short calls. Looks like you lost quite a bit if you held waiting for that big one.
EOC
What has occurred is astonishing
https://www.paulcraigroberts.org/2020/11/30/the-proof-is-in-the-election-was-stolen/
The list could go on and on about the things the left has done to destroy America.
Good article and
just about everywhere we look there are real signs of the market being very overbought here.
https://www.zerohedge.com/markets/good-it-gets
Bought VXX calls -
Starting to build a position -
12/18 calls $16 @ 1.70
bought 20% of position wanted -
bought 2 of the 10 calls wanted.
Things to watch...
Always keeping an eye on the dollar index as it has been
pressed downward to historical lows. This has helped the rise in stocks.
Watching the VIX for signs of a top in stocks.
Right now, the VXX 12/18 option call premiums are cheap...
Even the January calls are lucrative... Going with at the money or
In the money plays is not a bad decision. This is a position which is best
Scaled into... A small 25% buy of the position wanted.
We know we're way above the moving averages and a pullback is due.
Watching gold and silver, and GDX here for a long entry.
doubled IWM puts here -
12/04 180's @ 2.90
so average is at 3.10
SPY Puts bought -
12/04 359's @ 5.42
XOP puts bought here -
12/18 55's @ 2.80
IWM Puts bought -
12/04 180's @ 3.30
We go into the day and into
this holiday week, usually bullish, with a small gap up...
We can see the SPY chart has been consolidating since the big gap up on November 9th.
60 minute SPY
Chart is from David Larew's public list on Stockcharts.
Paltering...
It's sad and disgusting how common it is these days in our society.
It's now done constantly by our media sources and it's why they are
now commonly referred to as, "Fake News".
What is even more astonishing is how often it has been used in the financial community
to hide the truth about the risks we see in current valuations.
It is no secret that politicians often lie, but consider this – they can do so simply by telling the truth. Confused?
That statement becomes clearer when you realise that we've probably all done it. A classic example might be if your mum asks if you've finished your homework and you respond: "I've written an essay on Tennessee Williams for my English class." This may be true, but it doesn't actually answer the question about whether your homework was done. That essay could have been written long ago and you have misled your poor mother with a truthful statement. You might not have even started your homework yet.
Misleading by "telling the truth" is so pervasive in daily life that a new term has recently been employed by psychologists to describe it: paltering.
Interesting concept, a cooperative...
A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations."
A Cooperative in regards to Stock Options should focus on the market, the internals,
The sharing of knowledge, etc...
In pursuit of education and profits, above personal bias or attempts at grandstanding and "preaching feelings".
We currently still have the dollar index still in the
gutter, along with gold, silver, and Gdx, etc...
They are at support, bounce or break points here.
All we can do is try to be neutral and wait, trying to find facts and suppress feelings and biases.
Currently we know we're seeing SPY consolidation since the big November 9th gap up.
We also know the QQQ also has consolidated and may even look weaker than the SPY.
IWM, RSP and MDY still seem bullish and strong here in November, helped by the
strength of XLF, XLI, XOP, XLU, etc...
I actually am watching XOP for a put entry point
Since this is a short week,
Nothing on Thursday and a half day on Friday,
Any spikes that occur, up or down, may create good entry points
into December positions.
Good morning...
Plenty of uncertainty as we head into a short week.
We'll see what occurs with option premiums.
Amazon dropped to 2070 almost immediately, went ahead and sold the 2070 put I just purchased back out for $2.10. Can’t complain about over hundred percent profit in five minutes!
With one hour to go in the trading day, I bought AMZN 2070 puts for $.95 with the stock at $2081. It’s a gamble, but Amazon falls quite often on Fridays in the last hour of the day.
Today I sold 5 BIDO 130 straddles expiring when the market closes for $1.45, so far so good, will be looking to buy back the calls in the last five minutes of the day.
Seems like a good forum, I love the see how other traders think and what type of strategies they use to profit with options.
GLOP - Reduced dividend and clocked for 50% hit. Cut its dividend to .125 quarterly. Long some GLOP prA preferreds. Yielding 9.64%, about the same as the common, but much safer. In fact, preferreds dividend now safer with common cut.
Also, Short GLOP July $5 puts at 1.28.
Looks oversold.
I have a lifetime membership so I don't see the ads. I forgot about them. But, it is free. Sorry about that.
got here - lots of ads?
I do a fair amount of trading. Probably over 3,000 trades a year over 14 accounts that I manage for myself and others. Most a manage conservatively. I would say "aggressively conservatively!" lol!
Today I bought shares of ENLC. They reduced their dividend last night. Shares are up today as the reduction was anticipated, and not as bad as thought. ENLC is a midstream MLP.
I also did a covered call. Bought the stock at $5.97 (2000 shares)
I sold the February 6's for .35 (20 of them)
If taken out Feb 21st at $6 I will receive and will have received;
.03 PPS appreciation
.35 Option premium
.19 declared dividend
.57 total
My cost basis is 5.97 less option premium credit of .35 = 5.62
If taken out at $6 in 37 days I will have a return of 10.1%.
I feel pretty good about this trade. ENLC now has a dividend yield of 12.5% (.75 annually). The anticipated bad news is out. Dividend coverage is now near 2X. The yield and coverage I think will help put a floor under the current PPS.
https://finance.yahoo.com/news/enlink-midstream-announces-2020-financial-220400111.html
I am going to start posting some trades here. I originally opened this board in August of 2005 at "Traders Cooperative". In about 2009 or so, I left and a regular contributor took it over and changed the name to 'Option Traders Cooperative'. The board was closed in 2012. I don't know for what reason. I asked admin to re-open and they have. I hope to build a small community of investors here where we can exchange ideas.
Good trading.
Joe
This board has been closed to further posting. Some of the people who used to post here have started a new board if you are interested in connecting with them:
http://investorshub.advfn.com/boards/board.aspx?board_id=24396
Sld AMZN Mar 185 puts at 3.15
+.74
Treasury announced an increased revision to their previous forecast for this year's deficit to 1.2 trillion.
WASHINGTON (MarketWatch) -- The U.S. government ran a $231.7 billion budget deficit in February the Treasury Department reported Monday. This is up substantially from the deficit of b$222.5 billion in the same month one year ago. Receipts were $103.4 billion in February, the Treasury said, about $7 billion lower than receipts in February 2011. Outlays were $335.1 billion. This is $2 billion higher compared with a year earlier.
I have no idea or source of information as to what prospects are for the other 11 months.
Even so, I have been mentally working with the idea that the administration's expectation for this year's total deficit would be around one trillion or maybe a bit more. Shazam, if $231B is annualized, that's more like $2.7Trillion added to the debt. Should I be all shook up? Is the 231 a surprise, unexpected by people in high places in our government?
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