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I don't know how often it is mentioned here but watch out for dividend distributions on stocks when playing options.
For example: VZ is paying a .53 divi tomorrow. If you look at the call and put prices there is big difference in price between an OTM call and an OTM put.
VZ is at $47.60 currently. The $48 calls (+.40 to be ATM) are .08 X .09 but the $47 puts (-.60 to be ATM) are .37 X .38
There is a Impl Vol difference as well but you get the idea.
Just something we need to keep in mind when entering a trade.
GOOG $768.20
Congrats on your AAPL contest win. I knew AAPL would not stay flat today. I had a good chance at it for 2 days.
It reminds me a an old golf saying....drive for show, putt for dough.
I was really amazed when AAPL closed exactly on my guess yesterday. Normally, I am a day late, not a day early...lol. Good luck to everybody.
I like this alot...lol
Good luck to everyone.
$AAPL 452.73
VZ $44 Jan calls. In @ .38
SLV $30 calls for next week. In @ .45
Out rest of AIG $34.50 puts @ .15
Out 1/3 of AIG $34.50 puts @ .12 from .03 yesterday to get my investment back. Riding the rest, stress free, for a little while longer. Now at .19 x .21.
AIG lotto $34.50 puts @ .03
Out VZ $44.50 puts @ .10 from .07 entry. Not much of a gain but at least it wasn't a loss.
WLT new HOD, up 4%
VZ $44.50 puts @ .07 for a lotto
ADI- new 52 week high. Sold 1/2 of Jan 43C position @ .70 from .30 entry
IMO, with the elevated Impl Vol, I would expect premiums on Monday to remain high. What I have seen in the past is the normal, 5 days left of trading, extrinsic value will be applied to OTM positions. Time decay will happen as normal except on Friday when it takes a big hit.
I haven't seen one trade without the other...not saying it's not possible, I just haven't seen it.
This is copied and pasted from live news on thinkorswim:
The New York Stock Exchange said its trading floor would be closed starting Monday, the first such shutdown in 27 years, as New York City braced for Hurricane Sandy and a shutdown of the city's transit system.
Trading in all securities listed on the Big Board will be moved to Arca, an electronic trading platform operated by New York Stock Exchange parent NYSE Euronext (NYX), which operates the New York Stock Exchange , according to a statement by the company. The market operator said activity will also be suspended on its NYSE MKT exchange, formerly known as the Amex.
"We are open for business and at the same time acting in accordance with actions taken by the city and state of New York ," said Duncan L. Niederauer , chief executive of NYSE Euronext , in a statement.
Trading on the NYSE floor was last suspended on Friday, Sept. 27, 1985 , due to Hurricane Gloria.
WMT nHOD
472,000,000
Trade Idea: BIIB Mar $125 calls currently .40 x .50
The stock is up $2.24 today to $118.71. It looks like, for the past few days, a dip at the opening has been bought up and then the pps moves north. I might wait until next week for entry but I am def going to watch it tomorrow. It is still a little far away from $125 and the real movement won't happen until it gets closer to that anyway. Morgan Stanley has a $140 PT.
All views presented are mine alone.
Trade smart...trade "S"-mart...hehe
Dow futures test 13000 five times in last six hours. Bounces down every time.
/YM-Dow Futures at 13000
Welcome, you have found one of the best boards around.
About your question...
I do not like trading options on stocks that are $5 or less. The chance that you will lose your premium is multiplied by the fact that the PPS movement is so small. I'm not saying that there isn't a play there but, I would just buy the stock outright if you are bullish. Just my 2 cents, FWIW.
USD Update from MarketWatch. This is from TOS live news feed so I dont have a link to go with it. I've highlighted some key points.
By Deborah Levine and William L. Watts , MarketWatch
NEW YORK (MarketWatch) -- The dollar rose to its highest level against the Japanese yen since December on Tuesday after the Bank of Japan surprised the market by expanding its asset-purchase program.
The dollar advanced against the Japanese yen, trading at ¥78.13 -- touching its highest level on a closing basis since late December -- and up from ¥77.60 in late trading Monday.
The euro jumped 0.7% against the Japan's currency to buy ¥102.85.
The ICE dollar index (DXY) rose to 79.213 from 78.963 in late North American trading on Monday.
The Bank of Japan also set a temporary inflation target and keeping its interest-rate range unchanged at a 0-0.1% range.
The central bank said the ¥10 trillion increase in the asset purchases -- raising the total to "about ¥65 trillion" -- would be earmarked for the purchase of Japanese government bonds.
"This is a significant amount of additional easing, and with the BOJ's preferred measure of core inflation currently running at only -0.1% year-on-year, investors are bound to expect further bouts of monetary accommodation down the road," said Chris Walker , currency strategist at UBS.
The Bank of Japan has come under pressure in its own country to do more to arrest deflation, said Marc Chandler , global head of currency strategy at Brown Brothers Harriman .
It's new inflation goal is still a bit ambiguous, he said, and Japan's consumer price index has not risen by 1% in any year since 1997.
Europe's downgrades
Meanwhile, the euro slipped modestly, turning back down after a number of European ratings were downgraded.
The euro traded at $1.3169 , down from late Monday's $1.3201 .
European equities erased early losses and the euro was buoyed after the February ZEW index of German investor expectations unexpectedly turned positive.
Well-received auctions of Spanish and Italian debt also helped sentiment in the wake of downgrades of both countries' credit ratings late Monday by Moody's Investors Service , analysts said.
"Although the ZEW survey is far less important than the upcoming [ German Ifo index of business sentiment], it nevertheless points to improving sentiment in [the euro] core and suggests that the EUR/USD may extend a bit further if economic data this week proves supportive," said Boris Schlossberg , director of currency research at GFT.
The euro must clear the 100-day moving average at around $1.3320 "with conviction" to have any chance of testing the $1.3400-to-$1.3500 area over the next several weeks, he said.
Moody's late Monday lowered its rating on Italy , Portugal , Slovakia , Slovenia and Malta by one notch, cut Spain's sovereign rating by two notches, and cut the outlook for France , the U.K. and Austria to negative.
The changes were made due to the susceptibility of the countries to "the growing financial and macroeconomic risks emanating from the euro-area crisis and how these risks exacerbate the affected countries' own specific challenges," Moody's said.
Trader's remained pinned ahead of a meeting Wednesday of euro-zone finance ministers to discuss approval for fresh bailout funds for Greece .
The Financial Times reported that Germany and other European nations may not be prepared to fully approve 130 billion euros ( $172.1 billion ) in fresh bailout funds for Greece at the meeting and may require another assessment of the plan at another meeting next week.
Among other major currencies, the British pound fell to $1.5709 from $1.5776 on Monday.
The Australian dollar declined to $1.0702 from $1.0743 Monday.
- Deborah Levine ; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
I've got one eye on /DX today. The dollar has been charging up for 20 minutes. This could help explain some of the downward pressure on the market.
Bot ZNGA Sep $14 calls @ $3.00
Just a few to start because the premium is very high from last week.
This is def a longer term play and I do expect a nice profit, but not a quick one.
PPS has to be $17.50 or so by expy.
Bot CAT Mar $105 puts @ $1.89
5 and 10 min charts show decreasing interest but we all know that means very little.
This is probably not going to be a quick trade.
F $12.30ish for 30 min..on watch.
Here's some info that you may want to keep in mind....
(Copy and pasted from TOS or I would have provided a link)
Objects in the rear view mirror may appear closer than they are. But China's rapid growth means objects in the rear view of the world's economic powerhouse are actually shrinking at a rapid rate.
In 2011, China's gross domestic product came in at 47.1 trillion yuan ( $7.4 trillion ). That represented nominal growth of 17.5% from 2010, a blistering pace which makes many of the problems of debt and credit that trouble investors and hang over valuations for Chinese stocks appear a little more manageable.
Take local government debt. The government's own auditor put the end of 2010 number at 10.7 trillion yuan . In 2010 that was equal to 26% of China's GDP. In 2011, it had already shrunk to 22%. Even if weaker demand and reduced inflation mean a slightly lower nominal growth rate in 2012, by the end of the year it could have shrunk to 19%. Local government debt may also be creeping up, but not enough to push the ratio in the wrong direction.
Investors also worry about China's credit binge, which saw the ratio of loans to GDP soar from 96% at the end of 2008 to 119% at the end of 2010, as loan growth ran way ahead of GDP. An expanding economy means that ratio is also moving in the right direction--down to 116% in 2011. That smaller reduction in the ratio reflects the fact that banks' loan book continues to expand, though not quite as fast as GDP.
China's happy situation stands in stark contrast to that of big neighbor Japan , crisis ridden European countries, or the U.S., where slow or even negative growth does little to make the debt problem smaller. Growth hides a multitude of sins. The trouble for China's competitors is that achieving any significant increase in nominal growth without a large portion coming from higher inflation looks hard to do.
-0-
( Tom Orlik writes Heard on the Street from Beijing . He can be reached at + 8610-8400-7724, or at thomas.orlik@dowjones.com)
TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAsia@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.
(MORE TO FOLLOW) Dow Jones Newswires
01-23-12 2216ET
Copyright (c) 2012 Dow Jones & Company, Inc.
BKS Trade Update:
Stock is at $11.95, paid $1.80 for $10 calls yesterday.
Holding over the weekend at least.
BKS Feb $10 C @ $2.20 X $2.40 now.
There is no volume on these so I do not recommend following me on this one. I just wanted to update you on where this trade is.
This board rocks!
Bot 10 BKS Feb $10 calls @ $1.80
These are in the money calls with support around $10.60-10.75
Stopped out CRM 115 C @ $1.45...all out
Thanks for CRM this morning Jimmy.
Didnt have that one on my list.
Bot 10 Jan 115 calls for $1.18...out 5 at $2.00
Holding the rest for another hour or so...maybe...lol
MA down >$8 this morning.
I was able to play the 415W from $1.16-1.33 only. Left a little on the table but a very nice green trade.
Thank you. Watching it blow up now because I am out. lol
It's sitting above upper bollie on 5 min though.
Sold FSLR Weekly 33/32 Strangle x10 @ 1.00
Target reached.
Bot FSLR Weekly 33/32 Strangle x10 @ .80
First post in a long time. Not sure why I picked this trade to post. I hope to participate more in the future.
What happens when there are stop limits being triggered at the open? ADBE opens at $26 or less and that 20K could be 30K+ easy.
Who woulda thunk, a 15% drop AH with record earnings?
My guess... it opens at $28.50-$29