Google, november call

N

Nugget

was thinking of buying the google nov call. strike 500. Anyone have any thoughts on this. I am as sure as I can be google will be at 550-600 very soon. Any advice?
thanks. And yes this will be my first options trade. I daytrade and I would like to have something I can watch on the side..
 
Well this is a pure directional bet and I would suggest you thread carefully. It may eventually go to 550 and I personally believe it will, but I am not too sure it'll be by 11/17 (or to 505.3 for you to b/e). I know that Cramer has been screaming nightly about GOOG but there are not a whole lot of home gamers out there that can move it ... the smart money is already in.
 
yea I know Cramer has been pushing it but then does not reflect my decision. Would a straddle be better? I was debating that. Thank you for your reply.
 
If you are as sure as you can be that GOOG will be at 550 by Nov exp. then why would you long a straddle? A straddle is put on if you don't have a clue about which direction the underlying is headed, but only know that it will move in either direction in a big enough way to overcome the premium paid.

Options is fairly complicated and i suggest you learn more about it before jumping in. You may get lucky with a GOOG call here and there but the chances of you losing money in options at the beginning is high if you don't have adequate knowledge. There are many threads on this forum that you can browse to get that knowledge. Good luck.

Quote from Nugget:

yea I know Cramer has been pushing it but then does not reflect my decision. Would a straddle be better? I was debating that. Thank you for your reply.
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i have my series 7 and I know plenty about options. I believe GOOG will be at 550, but it might drop to 450 first. Thus I was considering a straddle..
 
You sure GOOG will jump 100 points in three weeks? Earnings already came out. What other catalyst do you see out there for another 10 - 15% jump in 3 weeks.

If you feel it is going to be that high, then give yourself 3 months to be right and use an OTM strike knowing it is a low probability play and use a small number of contracts.



P.S. Series 7 does not contain any significant knowledge needed for option trading so I would not tout that as the base lol.... :) Series 7 does not teach you delta and time decay which will explain why the NOV 500 call is not the best idea..

look further out in time...

Quote from Nugget:

was thinking of buying the google nov call. strike 500. Anyone have any thoughts on this. I am as sure as I can be google will be at 550-600 very soon. Any advice?
thanks. And yes this will be my first options trade. I daytrade and I would like to have something I can watch on the side..
More...
 
Sorry but what does a Series 7 got to do with knowing about options? I had a series 7, 65, 31 etc. too 10 years ago and it means squat right now. You said this will be your first options trade so I was just throwing caution to the wind.

Optioncoach was right in what he said. I ask the samething: What do you think is the chances of GOOG going to 550 in 3 weeks given the recent move based off of earnings? Like I said, I personally think it will get to 550 eventually, but I am just not too optimistic about it getting there in the next 3 weeks.

Regarding your straddle play, the Nov ATM (470 or 480 strike) straddle is printing about 27 bucks. In 3 weeks GOOG will have to be that much away from the current price in either direction just for you to b/e. This maybe a good r/r trade for you but I personally would not dabble in it. Good luck though!

Quote from Nugget:

i have my series 7 and I know plenty about options. I believe GOOG will be at 550, but it might drop to 450 first. Thus I was considering a straddle..
More...
 
Quote from Nugget:

i have my series 7 and I know plenty about options. I believe GOOG will be at 550, but it might drop to 450 first. Thus I was considering a straddle..
More...
WOW !

I would say, and many regulars in this board would agree, that you are C-L-U-E-L-E-S-S about options!
 
Quote from forex-forex:

How about a November 460/470 Credit Put Spread?
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After going up $70 last expiration?
That would take a LARGE set...:eek:

I have a Nov Credit Call spread on GOOG, far OTM, hopefully far enough this time... :(
 
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