Bidu about to tank down below $80
- Thread starter Rearden Metal
- Start date
tradethetrade
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All this info is available to anyone on yahoo finance. You need to know your s*** well to trade like this. Beginners like me should STAY OUT!!!
FWIW, assuming one to one ratio you've synthetically bought PUTs at the CALL strike price with more transaction costs than the natural.
RM,Quote from Rearden Metal:
<i> Are you leveraged with a ton of puts?</i>
---> No, I'm playing it correctly instead. Short stock and naked short Aug 30 & 35 calls.
<i>Also, are you using fundamentals for your evaluation, technicals, or a combination?</i>
----> http://www.elitetrader.com/vb/showthread.php?s=&postid=1159892&highlight=Wall+street#post1159892
P.S.: You may have a chance here after all. I usually get all cocky like this- right before a fall.
Congratulations on an enormously successful trade or should I say trades on DAKT.
I was thinking about this last night and remembering this post of yours above and also remembering Jack Schwager's interview of Mark Cook in Stock Market Wizards http://elitetrader.com/vb/showthread.php?s=&postid=1116566&highlight=Mark+Cook#post1116566
in which Mark discusses selling naked calls and one trade where he is absolutely hammered. There are 3 posts at the link so keep reading and the last one is just below someone elses. What I'm wondering about is your thoughts on doing this. What if DAKT had good news and it jumped up? I mean this could happen right? Unless you had insider info how can you be positive of how the earnings would go or that there wouldn't be some other news like in Mark Cook's story? It seems like you took an enormous risk which in this case resulted in a huge payout. But what if it had gone the other way? It's all very interesting and it's been fun reading your comments and everyone elses take on the trades. Glad some of you also made some good money on this too.
Quote from BCE:
RM,
Congratulations on an enormously successful trade or should I say trades on DAKT.
I was thinking about this last night and remembering this post of yours above and also remembering Jack Schwager's interview of Mark Cook in Stock Market Wizards http://elitetrader.com/vb/showthread.php?s=&postid=1116566&highlight=Mark+Cook#post1116566
in which Mark discusses selling naked calls and one trade where he is absolutely hammered. There are 3 posts at the link so keep reading and the last one is just below someone elses. What I'm wondering about is your thoughts on doing this. What if DAKT had good news and it jumped up? I mean this could happen right? Unless you had insider info how can you be positive of how the earnings would go or that there wouldn't be some other news like in Mark Cook's story? It seems like you took an enormous risk which in this case resulted in a huge payout. But what if it had gone the other way? It's all very interesting and it's been fun reading your comments and everyone elses take on the trades. Glad some of you also made some good money on this too.
big whoop, one good day and hes back to where he started, besides... i dont think he's leveragin' his buttz on this kinda trades.
http://stockcharts.com/h-sc/ui?s=YHOO&p=D&b=5&g=0&id=p60704911927
http://stockcharts.com/h-sc/ui?s=GOOG&p=D&b=5&g=0&id=p60704911927
How'd these companies do after earnings?
Often times, what seperates abject failure from glorious success is the ability to identify the obvious .... Stike that ... it's the ability to identify AND act on it.
http://stockcharts.com/h-sc/ui?s=GOOG&p=D&b=5&g=0&id=p60704911927
How'd these companies do after earnings?
Often times, what seperates abject failure from glorious success is the ability to identify the obvious .... Stike that ... it's the ability to identify AND act on it.
the best way to enter earning's directional trade is by selling the slightly ITM opposite leg. especially if one expecting moderate move. In case of DAKT , that would of be SEP 30 call. If RM would of be wrong and stock spike after report , the crash in IV would of erase first 5-8% of the loss ( compare to cent per cent loss when shorting).
Then ,even a 60-40 winning ratio (on the direction) becomes a winning strategy.
Then ,even a 60-40 winning ratio (on the direction) becomes a winning strategy.
Quote from BCE:
RM,
Congratulations on an enormously successful trade or should I say trades on DAKT.
I was thinking about this last night and remembering this post of yours above and also remembering Jack Schwager's interview of Mark Cook in Stock Market Wizards http://elitetrader.com/vb/showthread.php?s=&postid=1116566&highlight=Mark+Cook#post1116566
in which Mark discusses selling naked calls and one trade where he is absolutely hammered. There are 3 posts at the link so keep reading and the last one is just below someone elses. What I'm wondering about is your thoughts on doing this. What if DAKT had good news and it jumped up? I mean this could happen right? Unless you had insider info how can you be positive of how the earnings would go or that there wouldn't be some other news like in Mark Cook's story? It seems like you took an enormous risk which in this case resulted in a huge payout. But what if it had gone the other way? It's all very interesting and it's been fun reading your comments and everyone elses take on the trades. Glad some of you also made some good money on this too.
1) Cook over-leveraged himself. I didn't.
2) My DAKT stock position was much bigger than my relatively tiny DAKT options positions.
3) Selling 100 calls naked short is no more risky than selling 10,000 shares short in the underlying stock.
4) I keep under 20% of my net worth in my trading account. People ask me what my risk management is- THAT is my risk management.
5) "big whoop, one good day and hes back to where he started, besides... i dont think he's leveragin' his buttz on this kinda trades."
Thanks for sharing that RM. I wasn't questioning your abilities or strategy either for that matter, although it may have seemed that way. I was mostly wondering about the risks you were willing to take on. I'm sure your trading account is much larger than mine and you can thus leverage much larger positiions and afford to take much larger losses when it goes against you. Of course this also translates into much larger profits when you are right. Again, great trade and thanks for sharing your risk parameters and options strategy. Good trading today.
Thanks again.