Expirations Week plays

xtrhvydty · Jul 18, 2006

I know I'm not the only one who looks for these quick pops - the idea is
1. a liquid stock/option with good potential energy
2. a quick move during exp week
3. a nearby very cheap option in the predicted move
4. Some response in the OTM option ask price before placing the trade
5. Diversify over at least two different trades which have opposite direction expectations to allow a boost from the market either way

A lot are bombs but some have nailed 500%+. Here are my current plays:

(+20) GENZ 65 call @ .20 - looks like an upside explosion anyday now could make this a quick multiple -

(+100) XTO 40 put @.15 - I couldn't help dropping $1.5k here. Stock rolling over, oil retreating, and a close fly-by at 41.5 today - I predict a multiple on this as well

BAX 37.5 put @ .35- overbot on both weekly and daily, looking for profit taking to reverse into the 37.5 put - looking to place this tomorrow if some confirmation

How about your exp. week plays?

cheers and good trading

forex-forex · Jul 18, 2006

Quote from xtrhvydty:

A lot are bombs but some have nailed 500%+.

As long as "some " is 5x "A lot" then you will be breaking even. Anything above 5x is gravy, below 5x not so good.

I think you will find that number to be well below 5x.

mschey · Jul 18, 2006

Wow....you are really hoping and praying with those. Only 3 days to go.....I think you should say good bye to your money....though I wish you the best of luck.

Eliot Hosewater · Jul 18, 2006

DIA 109 calls.

Doubled since I bought 'em today.

.20 to .40.

nazzdack · Jul 18, 2006

Are you the offer at 0.40?

Eliot Hosewater · Jul 18, 2006

No.

TOS shows the bid/ask for 109 as .35 x .45.

forex-forex · Jul 18, 2006

Quote from Eliot Hosewater:

No.

TOS shows the bid/ask for 109 as .35 x .45.

Well then your calls are presently worth $0.35 not $0.40, minus commision. No profit until you close.

mr_spread · Jul 19, 2006

(+20) GENZ 65 call @ .20 - looks like an upside explosion anyday now could make this a quick multiple -

XT:

What is your reasoning that this will be an explosion soon? It does look ok for a move ITM for maybe AUG but not so much so for the next three days. Curious to know your rational.

BlueHorseshoe · Jul 19, 2006

XOM $65 Puts could be interesting. Look at some SLB/HAL options as they move related to oil ...

Eliot Hosewater · Jul 19, 2006

Quote from forex-forex:

Well then your calls are presently worth $0.35 not $0.40, minus commision. No profit until you close.

Sold 40% of them for .65. That pays for the original buy. The rest (if any) is pure profit.

Woulda coulda shoulda bought a bazillion of them.