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+1 All the same guy - I forgot about his convexx uername. I wonder if he will be back?

Registered: Feb 12, 2010 Posts: 1 Last seen: Feb 13, 2010

I agree. And his last ET handle was: @destriero His posts in the Option forum were very good - I think he is gone for good now.

The post above is to demonstrate a very simple way of doing what you suggest.

+1

The more likes you have the higher your reputation and prestige on ET. A 25%+ like ratio to number of posts is excellent. 10% - 24% is good. 9% or less is poor.

AMZN at $997.00 Oct27 1080 calls at $3.35 My outlook as not changed - AMZN $1100+ next Friday. No open position.

It seems to me the commissions and bid/ask spread could be problematic.

RE: AMZN current price $1010. High was $1050 - during regular trading hours. But I'm keeping my eye on $1080 - that was reached last earnings after hours but it did not hold the next day. Oct27 1080 Calls are $4.70. My target price for AMZN next Friday (the day after earnings) is $1100+...

The only thing to consider is the break even point after earnings - in his case $221.50. 10% gain would have put NFLX at $222.95 The 220 calls would be $3.00+ EDIT: Lets revisit this topic next week with AMZN or GOOGL - I think AMZN will be a good OTM option play for earnings. Bull...

And thats what the OP did. He was long the 220 calls -10% OTM. My guess he bought 1 contract at about $1.50 They climbed to about $1.85 before earnings. The risk:reward ratio was very good. EDIT: The OP's question actually had nothing to do with his trade. The trade was purely directional...

What is your interpretation of his comment?

Could you translate that into option talk? I doubt anybody will understand your jiberish.

No free lunch. Stocks also trend down before earnings. A stock like NFLX easily moves 10%+ after earnings. The OP could take the 30% or hang on for a NFLX 10%+ jump after earnings. To get a 500% option trade you can't close the 30% gain too early. That's option trading...

As of now the 220 calls still have some life in them. With NFLX at 205 a $15.00+ move is possible in the next few days. Unlikely but possible. Oct 2 to Oct 5 NFLX up $17. Good luck OP.