A Volatility Play With Significant Upside Should We Go Off The Fiscal Cliff [View article]
We eventually sold some Dec 15 calls and more 16 calls so we were even long and short. When VIX closed above 16 we made the maximum possible with those spreads, 56% on our money for the month.
We were planning to roll over to the Jans but it looked like Congress was about to do something and VIX had shot higher, so we held off from taking new positions. Obviously, we know that we made a mistake any bullish position we could have placed would have made bundle by now.
A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
I hope you have been following my recommendation to buy puts Friday mornings and close them out near the close and do the same thing with calls on Mondays because every day since I wrote that article you could have made at least 50% on your investment.
A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
Your last question certainly is an interesting one. The stock price does get bandied about by the option trading for sure, but bottom line, if the option players are bullish with their trades, the stock price should be pushed higher, and vice versa if the option traders are making bearish bets. One of the reasons that AAPL usually goes down on Fridays is that call writers are rolling over soon-to-expire calls and selling next-week Weeklys - if the market makers are buying those calls they will have to sell stock to balance out their risk level (they attempt to be neutral net delta at all times).
A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
Actually, you have it exactly backwards. The trade I made was a bullish one. The other side of that trade was most likely a market maker. That will make him bearish, and to balance out his risk, he will have to buy stock. That will push the price higher, not lower.
If you sell a naked put and collect $1622 you will need to post about $50,000 as a maintenance requirement. How do you calculate that is a 70% gain if it expires worthless?
Play Apple Volatility With A Unique Weekly Options Strategy [View article]
I am sorry I did not make it clear that the puts you buy on Friday will expire that day and the calls will expire a week from that day. By the way, today AAPL opened up down sharply and since I expected an up day, I bought 520 calls for $14 shortly after the open and placed an order to sell them at $20 which executed about an hour and a half later, so I took off the rest of the day with a nice gain.
Why Herbalife Should Move Higher From Here [View article]
Why Herbalife Should Move Higher From Here [View article]
The Facts Dispute The Claim That The Short-Term Volatility ETF Drifts Lower And Spikes Higher [View article]
A Volatility Play With Significant Upside Should We Go Off The Fiscal Cliff [View article]
We were planning to roll over to the Jans but it looked like Congress was about to do something and VIX had shot higher, so we held off from taking new positions. Obviously, we know that we made a mistake any bullish position we could have placed would have made bundle by now.
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A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
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