Trades

These are theoretical trades. Accurate based on realtime data.

L 6 AMZN 4/17 145C @.85
S 100 shares of AMZN at 136.02
 
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
Amazing AMZN options. It was clearly undervaluing these options at that time.

It is hard to believe there are opportunities like this. I have to start scanning for them. Still too early to tell, but that was very interesting.
 
Quote from kinggyppo:

look at BIDU pretty pricey at 600, LOL.
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...
 
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 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.
Ah,

Ok. These options have a wide B/A spread. Plus the stock has a wide B/A spread. If the puts turn into winners, the B/A spread of DIM options on BIDU is insane. Looks like the B/A spread on DIM SPX options.

It could work, but it requires more dexterity than most have to manage that B/A spread. I have automated programs that do this and I still don't like wide B/A spreads.
 
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

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.
 
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.
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.
 
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