My option trades

Quote from falconview:

Nine Ender

I think you are misunderstanding? Ryan is primarily making straight directional bets only.

a) He has already long passed using his own money. He is gambling with the casino´s money. He can risk as much as he wants and get away with it. A different argument might be he should take some money, ( initial investment ) off the table though.

b) Also since he is betting by buying only, HIS RISK is limited to the value of the option. That is why you bet with options, or at least I do. Knowing my cash risk beforehand. It is not an open risk, for a BLACK SWAN event. He has clearly shown and stated, each bet is written off before he makes it. If you get something back from a loser, then that is icing on the cake.

As another writer on here mentioned in a paper trading test, it was possible to have a 70 to 30 ratio winners, in betting this way. I don´t know about that, but it certainly seems to be working out for RYAN?

I found the various contributions on market makers and accurate pricing of options interesting. Seems we have no agreement here?

Earlier this week I did a paper test using some bid ask, 1 cent spreads, for stocks going into earnings report the next day. Today I placed five stocks going into earnings reports tomorrow. The difference between the bid and ask was quite large. Forget how much, but I want to know about how much is already being taken out by the market maker? Learning by doing, rather than theory so to speak. At any rate, by Saturday or Monday I should know the answer to that question, more or less. Trying to find some technical criteria to judge the best stock to bet on. Since I lack the intuitive subjective experience RYAN is drawing on as a modus operendi. I may never find any answer, but am just curious.
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I'm not misunderstanding anything. I have extensive experience trading near month options on directional plays. In the event that market conditions change and Ryan blows up his account, reread my post.
 
Quote from ForexForex:

Misunderstanding ? ..... Now that's an understatement. Nine Ender obviously isn't firing on all cylinders, he isn't the sharpest pencil in the box.
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So says one of the dumbest fks on this site. Do I really need to list your trades in a summary to highlight this ? Oh I know, somebody has to compete with Grand_Stuper_Cycle and Nitro. You fill that void nicely in the options area.

I'm putting you on ignore.
 
Quote from atticus:

Speaking of BIDU. Not recommending a naked position to anyone, but I sold the Mar BIDU 120/150 strangle at 3.06 to open.Vol still needs to come in 500bp.
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Interesting. I didn't follow the march. Did the vol continue to come in?

I had bought the Feb straddle. Implied move 7%, GOOG had a big move and BIDU is a pretty nutty name in general (with earnings day move between 7 and 15%)... but needless to say I didn't get the satisfaction.

EDIT:
Just looked at it. Interesting term structure.
 
Ryan,

Here is a potential earning play with good price movement and dirt cheap ATM March options.
CVC 15.29
earnings date: Feb 28
Straddle:
March 15 calls .95
March 15 puts .75
Debit.............. 1.70 (under 2.00!)

Look at the attached price chart for range.

I.V. on Stock (32) is closer to 52 week low(11) than it is 52 week high (104).
Also a merger/takeover rumor candidate.
 

Attachments

Quote from jeffalvinson:

Ryan,

Here is a potential earning play with good price movement and dirt cheap ATM March options.
CVC 15.29
earnings date: Feb 28
Straddle:
March 15 calls .95
March 15 puts .75
Debit.............. 1.70 (under 2.00!)

Look at the attached price chart for range.

I.V. on Stock (32) is closer to 52 week low(11) than it is 52 week high (104).
Also a merger/takeover rumor candidate.
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Outside of the merger rumors (which I don't know about) I tihnk this straddle is expensive.
 
Quote from newwurldmn:

Outside of the merger rumors (which I don't know about) I tihnk this straddle is expensive.
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These don't need to be bought until Feb 27 (earnings Feb 28).
By then, 10 days of expiration will be gone and that should drop the
prices a bit.
 
Been reading up, this weekend on what Ryan is doing. I get the general idea. The statistics say he will make money if he wins 1 in 5 trades. Which is born out by his phenominal equity curve rise.

Very interesting idea. Not sure I could do it. I´m playing around testing alternative ways of trading earnings on stocks. Never bought options on stocks before, only indexes. Which are more conservative and stodgy movers.

There are some nice articles online though, covering different aspects of trading over, and either side of earnings reports. Amazingly enough, I found I even more or less, understood the jargon involved.

There was one article using debit and credit spreads and while I sort of understood what was being done, couldn´t quite wrap my brain around it. Good reading though.
 
Tuesday morning and waiting for the market to open. In the meantime, after watching the sun rise over the barrier reef, breakfast and such, still time to waste before market opens. So been reading up on earnings trading.

Lo and behold I found a website that actually teaches what Ryan talks about while doing his. His chosen trading method is called, BEHAVIORAL TRADING, earnings announcements. Who wudda thought that?

He´s not so rich and crazy after all? ( grin :cool: ) 450% RETURNS IN two months or less: )
 
Well I´m in for two trades. One is my regular QQQ thingy. Short term. The second trade is one of RYAN´s types based on Earnings Calendar dates. This one was CIGX.
 
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