My Options Play

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Quote from iceman1:

"ALWAYS" .... 4 weeks or less for the ATM or slightly OTM"?? Not 3 weeks or FIVE weeks or 3 1/2 weeks. :D :D :p

it 'always' is that way?

Where did you come up with that?

I have seen .20 cent options go to 2.50 in the last 2-5 of the expiry cycle, and that's post-2000.

You gotta stop reading Money magazine.

Ice
:cool:
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LOL

I don't think ice likes u_g

Did you catch VZ earns? I was busy with other sht.
 
Quote from iceman1:

Bull call spread sounds like a 'do' to me only question is why use front month rather than Dec?
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I prefer the front month because the long option is cheaper, and my time frame is only 1-2 weeks. I go for a spread instead of a long option when the IV is relatively high, and if I find a short strike with a meaningful premium and beyond my exit target. I always draw the graph comparing the long option vs. the spread for the same $ invested.

Why do you prefer the Dec spread?
 
looking to structure a trade in BRCM. It is at gap support right here and a "potential" TB at 42.

IF it fills the gap from July 21 it will trade to 40 +/-. Today I am looking to enter Dec 40p. I will then 'leg' into Nov 40 puts as (IF) BRCM trades lower looking for a "free" trade, with a willingness to take delivery of the underlying.

RQC XH currently 1.35/1.40
RQC WH .65/.70

Of course if BRCM trades back to/above 42.50 then plan B would be to (consider) selling Nov 42.50p or Dec 45p

BRCM had the proverbial "upside pre-announcement" last earnings for those interested and thereby caught some sheep-analyst upgrades with one targeting $57 --- :eek:

Ice
:cool:

*** just as I posted this BRCM "collapsed" lower so I missed my first leg into Dec 40p - guess I should post AFTER I take trade :D
 
Quote from Cluseau:

LOL

I don't think ice likes u_g

Did you catch VZ earns? I was busy with other sht.
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VZ had really good results. It gapped up close to my 31.5 stop loss, but the IV dropped a little, about 8% from 24 to 21%.

Did you play HUM?
 
Quote from uninvited_guest:

Why place a LIMIT order at $3.80 when the ASK is at $3.90? It will not get filled. If you are right your order goes unfilled because you tried to save $0.10, it only gets filled if AAPL moves against you ( I know from trying to save $0.05 on the QQQQ options). Why not a MARKET order or LIMIT at the ASK price ($3.90)? Order gets filled and you can call it the day.

The only reason someone would place a LIMIT order for less than the ASK is because they are unsure of their trade.
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I didn't get filled on my $3.8 limit order as AAPL gaped down. I'll not chase it.
 
Quote from uninvited_guest:

The only reason someone would place a LIMIT order for less than the ASK is because they are unsure of their trade.
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so... according to you that's he ONLY reason for placing any limit order-- ---uncertainty about a trade? :D:D :D
 
Quote from iceman1:

looking to structure a trade in BRCM. It is at gap support right here and a "potential" TB at 42.

IF it trades fills the gap from July 21 it will trade to 40 +/-. Today I am looking to enter Dec 40p. I will then 'leg' into Nov 40 puts as (IF) BRCM trades lower looking for a "free" trade, with a willingness to take delivery of the underlying.

RQC XH currently 1.35/1.40
RQC WH .65/.70

Of course if BRCM trades back to/above 42.50 then plan B would be to (consider selling) Nov 42.50p or Dec 45p

BRCM had the proverbial "upside pre-announcement" last earnings for those interested and thereby caught some sheep-analyst upgrades with one targeting $57 --- :eek:

Ice
:cool:

*** just as I posted this BRCM "collapsed" lower so I missed my first leg into Dec 40p - guess I should post AFTER I take trade :D
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You may be right about BRCM. I am tempted to play it short-term long with a target around $47, but the market mood seems to be sour so I'll stay out this one. :)

A free trade is ... a free trade. Good luck to you!
 
Quote from cnms2:

You may be right about BRCM. I am tempted to play it short-term long with a target around $47, but the market mood seems to be sour so I'll stay out this one. :)

A free trade is ... a free trade. Good luck to you!
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right now BRCM is at support... my personal 'view' is that BRCM will be pinned at or above 42.50 by Nov 21 but the Q is: will it first trade lower to near the $40 level, which means it trades and likely closes below its 100 day ema-- nearer to its 150 day ema which is an indicator I tend to follow a LOT.

This would be a 'classic' thrust/shake-out on BRCM and could or might be a trading buy opportunity unless one believes "sell the so-called good news" will result in it being marked even lower than $40 (maybe near 38.50) in the short term.
 
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