Amazing AMZN options. It was clearly undervaluing these options at that time.Quote from nitro:
These are theoretical trades. Accurate based on realtime data.
L 6 AMZN 4/17 145C @.85
S 100 shares of AMZN at 136.02
Surprisingly, my system says there is nothing undervalued in BIDU NTM options at this point. There may have been earlier. I will look at it later after the market closes when I replay to the tape to see if there was anything there...Quote from kinggyppo:
look at BIDU pretty pricey at 600, LOL.
Ah,Quote from kinggyppo:
I didn't mean from an arb, its just that the stock has run mightily on the heels of GOOG pullout from china. I would look at june puts.
Quote from nitro:
These are theoretical trades. Accurate based on realtime data.
L 6 AMZN 4/17 145C @.85
S 100 shares of AMZN at 136.02
No such thing man. It is a daytrade, and possibly using the option to scalp gamma ontop of the edge I am getting on this trade.Quote from jwcapital:
Basically a synthetic ratio long strangle. I assume you placed the short sale and the long call purchase at the same time. Total cost of position (not including commish) is $510.00. Break-even points: Upside 147.35; downside: 130.00. Obviously need a bigger move downward to break even. So, great trade if you believe AMZN takes off above 147.35; if it doesn't move, then you lose the 510.00 or some fraction thereof; if it drops below 130 (over a 4% move), then you are good to go.