I'll believe that. It's just that for some reason pinning is this new en vogue subject. I think it's due to Cramer, every month like clockwork, rattling off some arbitrary list of stocks and claiming that they all "have" to get pinned at whatever the nearest strike happens to be, without the necessary analysis.
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GOOG Oct strangle on the 18th, close the 19th.
- Thread starter forex-forex
- Start date
I'll believe that. It's just that for some reason pinning is this new en vogue subject. I think it's due to Cramer, every month like clockwork, rattling off some arbitrary list of stocks and claiming that they all "have" to get pinned at whatever the nearest strike happens to be, without the necessary analysis.
Quote from forex-forex:
Decided to open the position today since it's a slow day for GOOG.
GOOG at $620.00.
1 contract 650 Oct call @ $6.90.
1 contract 600 Oct put @ $9.10.
Commission $70.00.
Total $1670.00.
GOOG price target for Friday >$682 or <$568. I would like a 2x return for this sort of risk.
Quote from wenzi:
Maybe a break from options for a while. Take a break and do some reading. IV crush is a thing you really need to understand.
So what was the final tally (best case) for this trade? I took a quick look around 10:20 and got an estimated 85% haircut on the play (inc $70 commish). However, closing earlier would have gotten somewhat better return...
Although a short strangle would have won this one, as we've seen before, that's an even riskier position. Either way, I struggle to differentiate between this type of play and randomness (coin-flipping, roulette, etc.).
I think there was a thread a while back where someone posted that after researching thousands of earnings events, they had developed an edge and could demonstrate an ongoing profit.
R
Quote from forex-forex:
Closed the 650 call for $0.95. SBUX earnings come soon, I am think of some Jan calls.
yea whats your love with sbux? don't waste your time trying to make lost $$$ on that stock. You'll just lose more. there's a whole list of much better stock with higher probability payoff.
Buy some FCX or BA calls... much better value and upside.
wow. the index broke the pin....
pretty amazing here, isn't it?
35 pts on the ES...
wow
pretty amazing here, isn't it?
35 pts on the ES...
wow
\Quote from Eliot Hosewater:
Yeah, I should have waited until almost closing yesterday. I would have raised the IC by 10.
Whew, got out with 2 minutes to spare at $5. I held on and figured a lot of folks didn't want to hold into the weekend. It went down to $3.50 for a second, but I didn't pull the trigger fast enough.
Paid for the new Espresso machine I just bought, plus a pound of coffee.