Kevin M. O'Brien's  Instablog

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nothingveryclever Comments (260)
 
Kevin: Have you tested Estee Lauder (EL) with your daily option system?

nothingvery clever
17 Nov 2011, 12:30 PM Reply Like

Kevin M. O'Brien Comments (1800)
 
Thanks for the suggestion. I have. Liquidity is definitely a concern, and it doesn't quite move like CMG or ISRG does. ATM or ITM strikes have about a 0.60 difference in the bid/ask prices.
I should have another to add in a week or so if all goes o.k. Thanks.
17 Nov 2011, 12:39 PM Reply Like

slapshot4 Comments (2)
 
Kevin,
First off, thanks for sharing your strategy and taking the time to answer everyone's comments and questions. I've been trying out your system for a few days now with virtual trading and got beat up pretty bad these past two days

.NFLX was throwing off false signals all day yesterday, verifying your claim that it was a risky play. However, today I noticed several false signals including BIDU at 12:12, FFIV at 11:22, and SINA at 12:16, to name a few. I'm guessing that this may have been the cause of Euro fears and Spain auctioning bonds? However, I also made several profitable trades with AAPL and CMG. Did you make any trades today or did you shy away due to headlines? Are there anyindicators to help spot these false signals in the future
17 Nov 2011, 10:36 PM Reply Like

Kevin M. O'Brien Comments (1800)
 
Yes, I traded AAPL and GOOG. I stayed clear of CF because of the news of large nat gas cuts int he Ukraine, which affected all Ag stocks. Very overblown, but when you wait for an hour to trade until the market opens, and a stock is down about $10.00, be very careful with it. Something is obviously up.

SINA and BIDU were especially risky today because of YOKU's earnings, which always directly affects the price of all Chinese internet stocks. Always a good idea to know those things. SINA had a great buy at one point when it was so oversold, but still a risky trade.

It's not false signals, it's staying away from certain stocks on certain days. AAPL last week from Mon-Wed was awful because of the iPhone and iPad production and rumors, etc.
17 Nov 2011, 10:46 PM Reply Like

slapshot4 Comments (2)
 
Thanks for the timely response, and duly noted.

I have also been following LVS because I have limited equity to work with, and you mentioned in one of your previous articles that you have had success with the stock. But, I was wondering, what do you typically set your sell limit at for LVS trades? Is it still .60-.90 greater than the buy price?
22 Nov 2011, 01:28 PM Reply Like

Kevin M. O'Brien Comments (1800)
 
No, I would go more in the sell range of 0.3-0.4. You can purchase more contracts to make up the difference.
22 Nov 2011, 02:10 PM Reply Like