Jimbo's Option Spread Journal

[mamt8r]

jim,

a couple of questions for you:

1- what type of broker are you using? etrade, fidelity, ib, etc?

2-how are you entering your orders? are you legging into them or does your borker allow you to send spread orders?

im looking into getting into specifically spreading and writing calls, but not sure which broker to go with. ib looks like they've got a pretty decent setup and commissions seem right at .75 per contract.

any suggestions would be appreciated.

thx

 

[ZeroINT]

Jim are you still planning to get out of your positions tomorrow or are you going to take your chances on Friday?

 

[jllm03]

Quote from ZeroINT:

Jim are you still planning to get out of your positions tomorrow or are you going to take your chances on Friday?

Around 3:30 to 3:50 PM Central time today.....I will BTC the 460 Call I sold...unless it takes a good dip in the price mid day, I'll take the profit off the table and be happy with that.
I will not hold it thru the earnings announcement..too much of a gamble.

 

[jllm03]

Quote from jllm03:

Around 3:30 to 3:50 PM Central time today.....I will BTC the 460 Call I sold...unless it takes a good dip in the price mid day, I'll take the profit off the table and be happy with that.
I will not hold it thru the earnings announcement..too much of a gamble.

It may be a gamble, but I am going to revise my previous statement.
I am going to hold on to the 460 call thru the earnings report, and let it go to expiration tomorrow...
E-Bay reported theirs and it went up about 6%.
GOOGLE's last earning made the stock climb 4.47% after the announcement, then settled down to 0.77%, and that is within my comfort level.

 

[jllm03]

Quote from jllm03:

It may be a gamble, but I am going to revise my previous statement.
I am going to hold on to the 460 call thru the earnings report, and let it go to expiration tomorrow...
E-Bay reported theirs and it went up about 6%.
GOOGLE's last earning made the stock climb 4.47% after the announcement, then settled down to 0.77%, and that is within my comfort level.

OUCH!

GOOG is up 8.35% (457.00) after announcement.

 

[momoneythansens]

Quote from jllm03:

OUCH!

GOOG is up 8.35% (457.00) after announcement.

Yes, you sold the 460s for $4.40 and you could have bought them back at the close for $1.50

The risk/reward for holding on to them was not there.

You'll probably get away with it but IMO this is not an approach for longevity.

Google's last earnings movment was not typical.

 

[ZeroINT]

I closed my 450 prior to close. I also bought some 430 calls.

 

[Eliot Hosewater]

I've still got my 410/420/430/440 IC. Only one contract - not too much damage.

 

[momoneythansens]

Quote from ZeroINT:

I closed my 450 prior to close. I also bought some 430 calls.

Drinks are on you then!

Might want to hit the offer on those long CALLs near the open before the vols get crushed.

Will probably also trade down to 430 or so in the first half hour before bouncing back up to 460.

Jimbo might want to cover his CALLs on the dip and vol crush.

Should be a fun open - anything can happen!

Good luck.

MoMoney

 

[momoneythansens]

Quote from momoneythansens:

Will probably also trade down to 430 or so in the first half hour before bouncing back up to 460.

Call that a dip?! Made it all the way down to 455 at the open LOL. Strong.