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Something fishy going on with GOOG?
- Thread starter peilthetraveler
- Start date
Welcome to the GOOG Option Machine...
Really...these Options has provided steady income for me for the past 6 months...each and every month.
The Open interest volume and the ability for this stock to jump $30 a day (once in a while) keeps these options at a "premium" price for Credit spreads. You can be just OTM enough that you can sit back and be comfortable waiting for the next exp date.
With the latest run up in the price, you need to have people that are speculating on the downward price. If you did not there would be NO MARKET.
Really...these Options has provided steady income for me for the past 6 months...each and every month.
The Open interest volume and the ability for this stock to jump $30 a day (once in a while) keeps these options at a "premium" price for Credit spreads. You can be just OTM enough that you can sit back and be comfortable waiting for the next exp date.
With the latest run up in the price, you need to have people that are speculating on the downward price. If you did not there would be NO MARKET.
THe "Option Machine" was just a phrase I threw in there, because it runs like a machine (most of the time).Quote from tjones111:
jllm03
about your post
Welcome to the GOOG Option Machine...
how wide do you keep on your credit spreads and how far OTM?
If you check my Journal that I post here...
http://www.elitetrader.com/vb/showthread.php?s=&threadid=74516
You can see how most of the past GOOG trades were setup..
I normally will do it with only 3 weeks or less of time left.
Try to set a strike about 3 or 4 strikes OTM. It depends on the volitility, which is now backing down, and the premium price I want to collect.
They used to be a search engine, but for some time now they are an advertising company, and looks like a very profitable one. That's not to say that the stock price cannot go down from here.
Quote from RedDuke:
Search engine at $476. It just does not feel or look right. We will not know when thing of this nature end, but they always do.
Keep in mind that 8000 of those put options are only going for .05 cents a piece. That's a whopping, $400. Oh boy!
Whoever bought them likely doesn't have any insider info. If they did, they would have bought more expensive put options and a lot more of them.
They are hoping GOOG drops "some" and then those .05 cent puts will go up to .10 puts. After comissions, they might even make $30 off of the trade.
Frank
Whoever bought them likely doesn't have any insider info. If they did, they would have bought more expensive put options and a lot more of them.
They are hoping GOOG drops "some" and then those .05 cent puts will go up to .10 puts. After comissions, they might even make $30 off of the trade.
Frank
Quote from frank99:
Keep in mind that 8000 of those put options are only going for .05 cents a piece. That's a whopping, $400. Oh boy!
Whoever bought them likely doesn't have any insider info. If they did, they would have bought more expensive put options and a lot more of them.
Another scenerio is that they were short the Puts and closed at a loss to free up margin.