Are you paper trading?
My Options Play
- Thread starter Multioption
- Start date
- Status
Paper trading? No!
Reason for bailing out: This is the first time my trade would move from ITM to OTM territory.
I don't want to deal with time decay!
I don't want to deal with time decay!
What about a reason for taking the trade?
Hello Multi. In reviewing the charts on the day you took the trade I can think of a couple reasons why it wasn't a good idea to place the trade. First, the market had already made a 10%+ runup from the October 12 lows. Second, the 45 level appears to be pretty firm resistance. Why not wait for a decisive break of that level and then buy a pullback?
I also believe that if you want to avoid time decay, why not buy a more distant month ITM option. This way you can hang in with the trade and give it more time to move? Just my 2 cents worth
Multi_Option (or anyone reading this thread)
did u ever look at NIHD when (I) mentioned it on this board? It was under 71 and traded to <80 today.
(NIHD earnings on 10/27- before- should see lots of action)
I am short BBY front month 45c that you bought, and +Dec 45c but plan on rolling into Dec 47.50c; also short BBY 45p (e.g. short front 45 straddle). I still think BBY sees 47.50
* I am short BBY stock right now but was lookng to cover IF and when it breached 44 (so far 44.08 might have been a good "do" although it could/might trade to mid 43 as someone else opined )
Also positioned - CVX 60c calendar/CVX 55p calendar
ICe
The price is likely to climb up to 45.50 before the week runs out. The weekly chart suggest that there's very low probability that BBY would drop to its last week close.
Iceman, sorry for missing your previous question on NIHD. I came across your question...Quote from iceman1:
Multi_Option (or anyone reading this thread)
did u ever look at NIHD when (I) mentioned it on this board? It was under 71 and traded to <80 today
I am short BBY front month 45c that you bought, and +Dec 45c but plan on rolling into Dec 47.50c; also short BBY 45p (e.g. short front 45 straddle). I still think BBY sees 47.50
ICe
NIHD is dicey! The weekly chart is not looking promising. This stock could fly up or break down.
Any fundamental reason why NIHD should be considered?
Even though I'm out of BBY, the trade did not break my rule as I stated yesterday that a drop to 44.50 would not cause any problem. However, it dawned on me that a drop below 45 is OTM and considering that time decay will set in should the stock fail to climb back to $45, so I had to close.
Will update when I get new trade.
Will update when I get new trade.
By the end of the week an increase in intrinsic value for said options would be met with a decrease in time value with the underlying pricing to the levels you mention. You took the trade as so many do prematurely when the market was running hot but showed signs of immediate pullbacks. You could have avoided this trade.
- Status