Search results

Hello there. True R/R is not the only factor, but it is the most important factor IMO. The absolute probability of my trade paying off is less than 50%, likely a lot less, but if I perceive the R/R is improperly priced, then it is worthy of buying. For example if the chances of BAC...

In the very short term who knows. But I am personally Bullish for the next 5 months, at least. As for position size, yes, I am very carefull. For straight up equities, 10% is my max, but for options, I rarely go higher than 2% of my total, usually less. I usually buy calls further...

I didn't get filled but it was not out of the question. Even though there was a large bid amount at $0.11, a large portion of those would get out of the way as BAC declines. Only a minority are firm buyers. Plus the volume for BAC is often huge. I have seen massive support/resistance get...

Placed an order today for 200 contracts 11$ strike Jan 2013 expiry, $0.11 bid. Meh, we'll see.

In theory, shorting a leveraged ETF makes good sense, as if you examine a long enough period, both the long and the short side will go down due to decay/fees and the manner in which it is structured. There are several problems with actually pulling it off successfuly in real life. As...

I'm considering buying the May 2013 12$ strike calls. Maybe put in an order at $0.20 Decent risk reward I think. Comments?

Yikes, looks like fraud alright. Well, one tell that his financial success was B.S. was that at no time did I recall him having a loosing day. A few loosing trades, but always positive for the day. It is impossible to trade for as long as he claimed to be doing and not have a loosing day...

Thanks for your input. I guess sharp moves in one direction or prolonged smaller moves in one direction can throw a wrench into this strategy. Plus as you mention the rebalancing is difficult. Maybe rebalancing every week or two instead of every day might make is easier, but I suppose you...

"Do not pursue what is illusory - property and position: all that is gained at the expense of your nerves decade after decade and can be confiscated in one fell night. Live with a steady superiority over life - don't be afraid of misfortune, and do not yearn after happiness; it is after all, all...

He is probably looking at the options that expire on the 18th not the 10th of Feb. Those are indeed trading at 6-8 cents.

The stock would have to drop by over 10% in 2 trading days for you to have intrinsic value in the options. If the share price goes down $3 or 15%, you will have roughly 33 times your money. Earnings would have to be pretty bad for this to happen. But if you want to have some fun and ask me...

You are correct, I went back to read and didn't see any entry price explicitly stated by the OP. But at that time, the calls would have been closer to $0.27 than to $2.7. In that case if this is a real trade, he was margin called long ago. Any of you guys buy far OTM calls or puts betting...

I'm looking at the AAPL calls expiring on the 18th of Feb 2012, stike price $470. I have today's range as being from a low of $5.75 to a high of just over $8. The OP said they sold at $2.70. Looks like roughly 3X to me, unless I am looking at the wrong information, which someone will shortly...

@zdreg yes, I mean bought back the options...close out the position. Theoretically unlimited loss is somewhat meaningless, but I and others use it as another way of saying a huge potential downside. The fellow who bought the calls is now up roughly 3X plus his money, assuming they are...

That is cruel, yet creatively funny. I see that there are no sholders to cry on here at ET. :D

At this point, in my estimation the initial position would require around $100K of extra margin to not be forced to sell. As stated earlier, selling OTM options, be it calls or puts, is not free money. Hopefully he sold already, but if not, it is an expensive lesson. During the 2008 and...

You would want to short the double or triple long in stead of going straight double or triple short because the NAS degrades in these types of ETFs. The fees associated with the ability of going 2 or 3 times in one direction adds up over time. Put another way, if you start with a stock...

That was my initial point. The owner of the company made huge money. What you call "stealing" is someone selling at what they perceive is fair value or better. The counterparty to this thinks there is more upside and therefore is a buyer at that price. Is it stealing to sell at the peak of...

@ Ghost 7222 and Pekelo, I see the re-stating of the revenue as simply an accounting difference of opinion. There was no ambiguity that Groupon collects a certain amount of revenue from the end user of the coupon and remits a portion of this to the provider of the service. Many businesses...

You are correct in that they will get lots of bargain hunters, as the customer is selling their product at a discount. But all kinds of companies have sales all the time. The idea is to get a new customer to try your product. I am a regular user of the coupon sites and I likely wouldn't...