So how was the trading today? 
I closed out an option and FX position for a nice gain.
I closed out an option and FX position for a nice gain.
My Options Play
- Thread starter Multioption
- Start date
- Status
It was a timing issue. The time that multi chose to make that trade was the wrong time. He could've avoided it altogether because it didn't fit his plan to begin with. Upon realization of this, losses were booked to right the ship again. You don't buy expensive time value calls when the underlying rallys into a KNOWN resistance area. Multi went back a few years in his training to allow this trade. That option traded down to $1.20.
Anyone have any luck with MERQE today? It was a bread winner for some.
My post http://www.elitetrader.com/vb/showthread.php?s=&postid=881286#post881286
was my reply to that post suggesting DITM options. They have some advantages but also some risk compared to closer strikes ITM.
There's also a thread I'm following on the effect of dividends on short D/ITM options: "Beware: Call writers must pay dividend" http://www.elitetrader.com/vb/showthread.php?threadid=57969&goto=newpost
Quote from iceman1:
10-14-05 02:44 PM
one more to look at:
OVTI
long Mar06 15c (look cheap-- for a reason of course)
then, leg into Nov 15c OR sell front 12.50 calls on move higher next week, if any.
1. earnings report (currently) scheduled Nov 30 allowing for a counter trend move up into said report
2. heavily shorted stock, to-wit:
The stock's SI is up to 39%, in part because of concerns over "discrepancies" between statements made on the Q1 conference call and the subsequent 10-Q filing. This one could be a mover in either direction on its Q3 report (per briefing.com).
3. should trade above 12.50 into next Friday's expiry as this stock has a propensity to pin
4. TA positive: potential DB at 12 -- albeit on low volume ?
5. TA negative: bearish right triangle
6. Fundamentals: ??
http://www.fool.com/news/commentary...1.htm?logvisit=y&source=estmarhln001999&npu=y
have no positions in OVTI yet
iCE
anyone (besides me
) take my advice and enter OVTI --? (see above) take a look - looking @ 14.50- 15, soon (16-17 also doable)
remember earnings are set for November 30th so that will be an action day-
Ice
I agree: OVTI has bullish technicals. If you're in you should tighten your stops and look with confidence to $14-$14.5 where I see resistance. If you're not in, this is a riskier point to get in.Quote from iceman1:
anyone (besides me
take a look - looking @ 14.50- 15, soon (16-17 also doable)
remember earnings are set for November 30th so that will be an action day-
Ice
I'm still trying to figure out how to use DMI. Based on my latest understanding of this indicator this could be the beginning of a stronder uptrend. Does anybody care to comment on it?
PS: I didn't pay enough attention to your first post about OVTI. My mistake.
Quote from iceman1:
it is very hard to figure how AAPL keeps trading higher -- particularly like today- after its lukewarm earnings - frankly I'd keep an eye on it for a golden short opportunity -maybe look for a sweet reversal on decent volume.
also -- check out front month open interest to get a potential read on where it might head as we clsoe in on Nov expiry
I am going to put it on radar - particulalry if/when it breaches 60 level.
Only thing is -- in Q4 -- its hard for me to think AAPL will sell off hard. But you know what they say about opinions & arse-h-les.
Also that brings to mind a scene when (in Patton) George C. Scott's concerned about the Germans' plans-- and how they NEVER mounted a Winter attack before in their History-- he then says:
"so I think that is exactly what they will do"!
Whenever I think something is highly improbable or even borderline 'imposible' in these markets or with a particular equity- I always think about the movie 'Patton' --- and that quote !
iCe
imo AAPL will hit $65 before pulling back. At the moment the path of least resistance is up.
- Status