GOOG - Earnings this Thursday - Buy OTM weekly calls on Thursday

[mastacoli71]

Quote from kinggyppo:

by the way no one answered the question of how to hedge delta after hours, a few people asked about it will let someone else explain this as its above my pay grade..

Sell or buy shares of the underlying to offset the current delta of your position.

 

[stock777]

greatest trade ever on et. lets do it again next week!

 

[tradingjournals]

Quote from FXforex:

Thread title says it all. Exact strike TBA.

Congrats! You deserve it. Do you plan to start a permanent thread dedicated to trades like the one you posted here? I just became aware of your thread now, but if I knew about it I would have definitely followed it.

 

[HeSaidSheSaid]

Quote from FXforex:

Sold 1 GOOG 10-19-13 930 call @ $50.40


congrats!

I think you could have made more money if you waited for few hours and then exercise the call?

 

[neke]

Quote from tradingjournals:

Congrats! You deserve it. Do you plan to start a permanent thread dedicated to trades like the one you posted here? I just became aware of your thread now, but if I knew about it I would have definitely followed it.

So if in the next trade, he lost his premium, will you still stick around, and not bash him as a gambler?

 

[Trader.Fighter]

Board is so riddled with losers, most can't stand watching someone else succeed.

Great TIMELY call OP!

 

[blakpacman]

Peter Brandt called a head and shoulders top in GOOG the day it bottomed and then soared into earnings.
http://peterlbrandt.com/head-shoulders-rest-google-forming-textbook-top/

 

[tradingjournals]

Quote from neke:

So if in the next trade, he lost his premium, will you still stick around, and not bash him as a gambler?

It is his money and I do not bash people whether they win or lose. I think that the trade he made was good not because he won it, but because I think that the option he bought was really cheap (again not because he won, but because I think it was cheaper premium than what it could be/should be).

I do not think highly of black scholes model.

As for gambling, the options market seems to me to be a negative sum game. If this is correct, the participants as a whole are losing money.

 

[FXforex]

The NFLX earnings has demonstrated the very important point of locking in profits when you can. Do not get too greedy because the market can take unrealized profits back.



Before earnings at market close - 4:00 PM EST

• GOOG $888
• NFLX $355

After earnings at market open - 9:30 AM EST

• GOOG $980 plus 10.4%
• NFLX $388 plus 9.3%

GOOG 1 day chart after earnings

Green dot - Closed position @ $50.40

NFLX 1 day chart after earnings

 

[vanv0029]

I must be a heretic in not believing the "truth" of markets because
"the" market seems to have correctly predicted NFLX earnings share
price movement (355 close with 45 point Oct. 25 straddle so selling
the earning straddle made money) but was totally wrong on the
GOOG straddle share price movement prediction - at something like a
32 point straddle move on an 880 close.

Psychology must somehow be involved. Seemingly GOOG unlimited
share price upside is justified because advertising has unlimited
upside potential and unlimited ability to increase market share
followed by infinite profit growth turning the world into nothing but
advertising (making Huxley and his Brave New World book's doomsday
prediction appear as a mere amateur) while just starting
US Shale O&G energy development are viewed as having limited potential
and as "chasing the red queen" as today's short attacks on various
mid cap E&P showed: HK, MHR, GPOR etc. Also for NFLX, seemingly human
entertainment distribution companies are hindrances toward achieving
a pure reality as advertising world.

Long live the keepers of the "page" algorithm.