TBT long play

TBT is looking very interesting down at these levels, I would be a buyer sooner than later on this one. I think its easily back to $32 in a few week on this one.
 
Just ratio the upside,i.e the Dec 31/40 1x3 for a 50 cent debit..the upside calls are trading at a 40% plus vol..On the next rally,they will go down as the air comes out of the vol..
 
Quote from taowave:

Just ratio the upside,i.e the Dec 31/40 1x3 for a 50 cent debit..the upside calls are trading at a 40% plus vol..On the next rally,they will go down as the air comes out of the vol..
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Not a bad idea, but what about selling the 30/28 put spread ?
 
At these levels,I want to be long delta and short vega to the upside.
I am hoping to make dollars,and the put spreads are trading for 1 dollar


Quote from syswizard:

Not a bad idea, but what about selling the 30/28 put spread ?
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Looks like another "opportunity" to enter long today.
New lows in TBT for sure....could we get to 27 ?

It's obvious now the economy has over-shadowed any concerns about debt downgrades or defaults.
 
Thats why a low debit spread with time is really the best play.With a Dec spread,you dont have to have perfect timing.
Quote from syswizard:

Looks like another "opportunity" to enter long today.
New lows in TBT for sure....could we get to 27 ?

It's obvious now the economy has over-shadowed any concerns about debt downgrades or defaults.
More...
 
Quote from taowave:

Thats why a low debit spread with time is really the best play.With a Dec spread,you dont have to have perfect timing.
More...
Of course.....but I prefer "quicker hits".
That is why options are so nice....lots of flexibility to accommodate risk tolerance and preference.
 
OK, guys....now what do you think in light of the downgrade ?

Pop on Monday at the open and then a fade ?
That's my call.
This economy is still way too weak for higher interest rates.
QE3 coming soon.
Definitely by Christmas.
 
No chance we pop on the opening..Its going to be a nasty opening..


Quote from syswizard:

OK, guys....now what do you think in light of the downgrade ?

Pop on Monday at the open and then a fade ?
That's my call.
This economy is still way too weak for higher interest rates.
QE3 coming soon.
Definitely by Christmas.
More...
 
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