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  • Chesapeake: Is The End Near Or Full Steam Ahead? [View article]
    I am just presenting three different option plays that might work if you have a certain inclination towards CHK. The article does not take a bullish, bearish or neutral stand.
    Jun 6, 2012. 03:26 PM | 2 Likes Like |Link to Comment
  • Facebook Options: The Time Has Arrived [View article]
    Right on. As underlyings go lower, IV almost always go higher. Conversely, as stock go higher, IV almost always contracts. Another reason for this behavior that I did not mention in the article is that the IV calculation is a mathematical one based in some aspects on % moves in the underlying. Normally, lower price stocks have greater % moves than higher priced ones.
    May 30, 2012. 08:16 AM | Likes Like |Link to Comment
  • Facebook: Shorting Through Options [View article]
    sounds like a great strategy especially with such high premiums. Good luck.
    May 23, 2012. 03:50 PM | Likes Like |Link to Comment
  • Facebook: Shorting Through Options [View article]
    Thanks, Steve. Just be careful with the price of the puts. They will be over fair value by a significant amount. However, this premium may be worth it because if you can't short the stock or have to pay an usurious rate to borrow the stock, this may be the best alternative.
    May 23, 2012. 03:48 PM | 1 Like Like |Link to Comment
  • Trading Google's Earnings Release [View article]
    100% correct. I wish authors/experts? of option articles would be more careful in advice the give readers.
    Apr 13, 2012. 10:32 AM | Likes Like |Link to Comment
  • Trading Google's Earnings Release [View article]
    Rough outcome today. $6.75 in prem. basically all gone

    friendly advice: be careful making statements like this:
    ' I am completely confident that the trade recommendation I am writing about will work like a charm.'

    People make may follow your advice and if they did, they are out the the whole investment.

    it is more responsible to say something like this:

    ' if you believe this or that, then try this strategy"
    Apr 13, 2012. 10:25 AM | Likes Like |Link to Comment
  • What Apple's Dividend Means For Option Traders [View article]
    Theoretically the calls go down and the puts go up. The difference is $4.855, not 11 cents. The reason why the calls were up on the day was because the underyling was up significantly. They would have been up ( theoretically) $2.485 more if not for the dividend.

    The Jan '13 600 calls went down approximately $2.485 ($71.31- $68.825 = $2.485)

    The Jan '13 600 puts went up approximately $2.37 ($71.40- $69.03 = $2.37)
    Mar 21, 2012. 10:16 AM | Likes Like |Link to Comment
  • Pre-Earnings Options Plays For First Solar [View article]
    I don't necessarily disagree with your analysis, but I tend to put more emphasis at the current standing of an underlying when making my analysis. Factors such as a large short interest, increasing industry headwinds and 30 day HV higher than 30 day IV shaped my view that the straddle was worth a shot. It appears that the post earnings move will be in 5%-7% range today, so the straddle is slight loser and the other two ideas appear to be washes.
    Feb 29, 2012. 08:29 AM | Likes Like |Link to Comment
  • 5 Ways To Play Baidu Earnings [View article]
    Jan 31 2011 numbers are wrong? 1.96% move should not have equaled a 10.86% return.
    Feb 7, 2012. 01:36 PM | Likes Like |Link to Comment
  • 10 Option Trades For The Next 10 Days [View article]
    Just sell the puts and avoid the double commissions. You are advocating synthetic puts. A buy write is just a synthetic put.
    Feb 6, 2012. 02:32 PM | 1 Like Like |Link to Comment
  • Barclays (BCS +0.9%) is considering buying Toronto Dominion (TD -0.3%), RBC (RY -1.2%) or PNC Financial (PNC +0.3%) according to Fox Business News.  [View news story]
    really? TD & RY are both twice the mkt cap of Barclays
    Feb 2, 2012. 02:18 PM | Likes Like |Link to Comment
  • Amazon Earnings: A Blazing Kindle Fire Or Flameout? [View article]
    Basically sellling OTM call spread and OTM put spread. Good strategy when IV is high, but remember what happened in NFLX. underlying rose 22%, much more then historical moves. Straddle was pricing in a 8-9% move. In AMZN, right now the 215/220 call spread is $.80 and 170/165 put spread is .70. sell both for $1.50 risk is $3.50 if there is blowout either way. Is that good risk/reward? anyone guess, there is no right answer.
    Jan 31, 2012. 03:55 PM | Likes Like |Link to Comment
  • Replacing BofA Stock With Options To Reduce Risk [View article]
    that is not what is written. read the sentence again. nothing about % gain. i thought you meant over $10 the options would move faster then the underlying in real terms, not % terms. that is how it reads, anyway.

    maybe rephrased like this:

    these options would gain value percentage (%) wise at a faster rate than the stock itself.
    Jan 20, 2012. 01:54 PM | Likes Like |Link to Comment
  • Replacing BofA Stock With Options To Reduce Risk [View article]
    "These options would be worth nothing if the stock isn't above $10 per share at expiration, but if the stock trades past that level, these options would gain value at a faster rate than the stock itself."

    I believe the statement above is misleading, if not outright nearly 100% false-

    The options would very very unlikely not gain at a rate faster then the stock unless there was a huge explosion in implied volatility. The delta of these options is of course not greater than 100, the delta of the underlying.

    How would the options move faster then the underlying? Unless IV exploded.
    Jan 20, 2012. 01:32 PM | Likes Like |Link to Comment
  • Research In Motion Earnings: An Options Trade That Makes Sense [View article]
    $17.43 upside break even. article said $17.73 max gain .57 max risk .43 not sure if that is tremendous upside or is a good value on a risk/reward metric. seems fair to me.
    Dec 5, 2011. 11:21 AM | 1 Like Like |Link to Comment