Well, took a while to get my options accounts set up, but I'm finally there. Until now I've only paper traded AAPL weeklies, simply because of their volatility. Because of the shorter time span, the moves in stock price create far bigger option price swings.
Monday is usually a non-event, because of the enormous premiums. The fun usually starts on Wednesday, though yesterday had some wild swings already due to the iPad event. With earnings this week, premium is still high so it may be best not to play until after earnings, on crazy Friday (swings on Friday are nuts - lose all or multibagger).
If you've not checked out weeklies before, I strongly recommend watching how they behave for a good period of time because it's easy to lose all of your money.
One of my fav weeklies is CF. Yesterday's intraday shows why: after bottoming out it went right back to the open price before retracing. That move made over 100% on the $205 weekly, even if you waited till it hit $202.
Edit: I prefer not enter the weeklies until I see a clear pattern. This may reduce profits, but also stops you from losing 50% in a short period. The fast moving stuff is more of a gamble.
Never trust anyone's
- "buy": you feel like holding their bag?
- "hold": as they're cashing out, you're left bleeding.
- "sell": oops, someone's missed the train.
The best place for big board plays: GoodFellas $tock Mafia Plays
