My Options Play

Status
Not open for further replies.
Quote from Multioption:

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.
More...

Congratulations for sticking with the plan!
 
Quote from Multioption:

Iceman, sorry for missing your previous question on NIHD. I came across your question...

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?
More...

with earnings on 10/27 (before)..... at this point you are correct there is no way to handicap which direction other than staying with major trend. Even if there was a "fundamental" reason to trade with the trend it's a coin flip which way it will move immedaitely post-earnings (st).
 
Quote from cnms2:

It's funny how this thread turned quiet after Multiplan's wining trade and got reanimated after this losing one ...
More...

The board got quiet because there was no new trades. The PEET trade was 2 weeks ago.
 
Quote from Cluseau:

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.
More...

your analysis makes no sense to me... sorry. There is (was) plenty of time left for those calls to double (although I think the entry @ 1.80 was not optimum). I say that albeit I am short the same front 45c. BBY "could" trade to 48-50 by Nov expiry with no earnings issues before Dec 13th.
 
Quote from cnms2:

It's funny how this thread turned quiet after Multiplan's wining trade and got reanimated after this losing one ...
More...

Peete's Coffee? Come on. Can you live with yourself taking such a trade? I mean really....peete's coffee?

I know about losing trades because i have plenty of them. It is part of trading. I have been watching without much care until i saw the BBY call purchase--it was in direct conflict with every possible measure known to man kind. Which is why i said i'd just as soon sell them.
 
Quote from iceman1:

your analysis makes no sense to me... sorry. There is (was) plenty of time left for these calls to double. I say that albeit I am short the same front 45c.
More...
Iceman, I got his point and he's right!

Consider this: A position initiated at $1.80+ when stock was at-the-money and with less than 30 days to expiration. If the stock had climbed up, it would have taken about $3 - $4 move to even out time value, otherwise the position would break-even at 46.90. But then the stock dropped with time value eroding, even if the stock rallies, time value would have been lost, thus the position would have been a waste of time and efforts; that is if any profit is generated within 5-7 trading days!
 
Quote from Multioption:

Iceman, I got his point and he's right!

Consider this: A position initiated at $1.80+ when stock was at-the-money and with less than 30 days to expiration. If the stock had climbed up, it would have taken about $3 - $4 move to even out time value, otherwise the position would be breakeven at 46.90. But then the stock dropped with time value eroding, even if the stock rallies, time value would have been lost, thus the position would have been a waste of time and efforts; that is if any profit is generated within 5-7 trading days!
More...

Mazal-tov. Now remember to write it down for next time. :)
 
Quote from Cluseau:

Mazal-tov. Now remember to write it down for next time. :)
More...
Unfortunately, 8 out of 10 traders remember their rules after trade has gone awry.

I'll be more careful next time.
 
Quote from Cluseau:

Peete's Coffee? Come on. Can you live with yourself taking such a trade? I mean really....peete's coffee?

I know about losing trades because i have plenty of them. It is part of trading. I have been watching without much care until i saw the BBY call purchase--it was in direct conflict with every possible measure known to man kind. Which is why i said i'd just as soon sell them.
More...

We don't know what's Multiplan's trading method, so it's expected not to agree with all his picks. After he posted his trades I did my analysis too and I wouldn't have entered either one of these trades, but I'm still patiently waiting to see his results in the long run.
 
Status
Not open for further replies.
Back
Top