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Lord DarkHelmet

10/26/12 12:01 PM

#2728 RE: Fossil-Fuel #2726

AAPL down about 10 right now...but it was well within the anticipated standard deviation move that the MM's were pricing in.

Selling a Straddle, strangle, ATM Butterfly, or Iron Condor before earnings would have reaped significant gains.

QQQ sitting on its 200 MA. Seems like a good support line.

Maybe want to hedge your bet by buying a Bull Call debit spread instead. It won't make as much money if QQQ bounces up, but it will be more forgiving if it cuts through the support line.

IV has dropped about 17% on QQQ today. at 18.95 Avg IV, it is sitting right about in the middle of its Volatility range. Because of that, going long on the Call probably won't get too hurt by a decreasing volatility if QQQ goes back up....but the IV does have some room to go down further. Another reason why a Call spread might be better since it lessens the impact of an IV change against the position.