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I was definitely going to make a bearish earnings play at 120 but now this rapid movement is creating nice premiums? Anyone think collecting $14 for a Feb 10 105 straddle seem safe assuming a new range of 90 (Citron) and 120 (recent high)?

NVDA=great Company, product, etc. but what's the chance that they miss on Feb 15th? And I'm not talking about the .83 EPS and $2.1 B Sales because I think the market is already pricing in at least a 10-15% beat. I think a great contrarian binary play is setting up...

I'm sure everyone is wondering but no one has asked yet. What's the significance of a 3 day bar? Care to share?

I've heard anecdotally that in the past, market makers were less sophisticated and there were more arbitrage opportunities to exploit mispriced options. Any truth to that?

I work from home on the west coast and am done by 1:00PM. The lifestyle is very flexible and I don't necessarily wake up early, nor watch the market the entire trading day. If I want to mountain bike, shop, hit the gym or watch/trade the markets from Starbucks during the day, I just take off...

Hemant, What broker are you using? All 4 brokers I use have real time alerts related to options (custom alerts, volume, changes in IV or volume, block alerts, IV/HV, etc.). My brokers are: Schwab, AMTD Fidelity and Options Express.

Who's a bigger scumbag, Big 4 Accounting firms who are paid to report transparent, objective financials but instead lie, hide and obfuscate for their clients or Sell Side Analysts who pretend to provide objective opinions but who's firms are clearly taking the opposite side.

MRVL is Tuesday morning so it's too late to play that. Isn't TIVO in November?

https://en.wikipedia.org/wiki/List_of_defunct_automobile_manufacturers_of_the_United_States Just food for thought. All of these had their own competitive advantages too.

There was also a disclosure on Solar City's financial health and their $3B in debt. I think that was the primary reason for Tesla's drop. The Spacex crash will likely scare off its Chinese Acquirer. Although it shouldn't affect Tesla the company, since Tesla needs future equity or debt...

As Jones said, you set up an extremely wide strangle and needed a massive move to make money on the width + premiums paid. As Cyjack said, the premiums you paid to set up this play were jacked up because it was pre-earnings. What wasn't said was that you also set the play with very little time...

You're doing some heavy inferring again. You expressed skepticism on 100% returns on ICs and I explained it as a simple function of shorter duration and a smaller denominator. You may be a day trader or algo trader and are locked in on a portfolio return for your specific capital in that...

Don't put words in my mouth. The sum of all of my ICs this year are up 167% as of today, and that's not with any funny compound math either. I did financial strategy for a living at Fortune 500s before this, so no need to condescend me just because your failing. If your putting ICs on...

Here's a few 1-wing condors where the put side isn't protected. You can see how the annualized ROI is affected by the duration and the naked put.

ROI for options is almost a topic in itself I calculate it myself and do include costs. Here's a sample. The annualized ROI = net return/cap@risk * 365/10. The annualized ROI for the sample is 1277% because it's such a short term play on high IV options through earnings. Using max...

The capital at risk for an IC is only the (width of the wing) X (contracts) X 100 and they're typically set at a high win probability. You'll notice that the probability adjusted annualized ROI is typically well above 100%, even in our current low IV environment. The theoretical ROI for...

X bagger equals the amount of times the price has increased over the purchase price. It was one of the 1st stocks I ever bought, along with Bay Networks, Cabletron, and Sybase. The others didn't fare as well but Cisco bootstrapped me and is now part of my "name". Back then, I had just...

"Need different skill sets" translates into needing H1-Bs and laying off American engineers. That hypocrisy is why I got out of engineering. It seems many fed up engineers eventually become successful traders. Since CSCO is a 20 bagger for me and I'm an agnostic trader now, I applaud this move.

I made a play on mildly bullish range play on JWN because of M but it just gapped 7.5% before earnings and 7.75% after. It busted past my profit range.