Questcor Pharmaceuticals: A Risky Opportunity For Option Traders [View article]
The holders of Sept long calls and short Puts who were caught in the stock crush (had not closed out prior) are going to affect the stock price behavior until Monday. I have found the best way to play this speculative trade is to simply buy the stock. I don't worry about implied volatility and the Greeks that will go against any option play. I'm long QCOR stock and long calls bot yesterday.
There Are No Strategies For Making Extraordinary Returns With Apple Options [View article]
Thank you Epsilon for your relevant article. I agree that it's not easy to make the "claimed" returns and yes, iV plays a big role. I have found swing trades exploiting ideal entry points below Apple's 30 day moving avg most rewarding. Yes, i bot Apple at $575 minutes after their July earnings release and cashed in within two weeks. For me Terry Allen's most insightful comment was that Apple always was higher in 6 mos. Of course the same can be said for many past ex-top dog stocks until the fundamentals wear out.
2 Strategies For Making Extraordinary Returns With Apple Options [View article]
I'm trading Sept bull put verticals on AAPL which are Theta positive and I have one long call Oct deep-in-the-money that I will sell when I achieve either a 60% return or roll when the Delta reaches .82 or slightly higher.
2 Strategies For Making Extraordinary Returns With Apple Options [View article]
Excellent comments from Alpha members. All uplifting and informative. Bravo Terry on your article and option strategies shared. To anyone that does not understand how the calendar or vertical options discussed work, do NOT trade that product until you have practiced with a paper money option account. It would be like me reading about how much fun it is to fly a twin-engine jet when I only am licensed for a single prop Cessna. Option trading requires a proven set of skills anyone can learn, but few take the time to learn before loosing a lot of money.
Apple: Making Money On The iPhone 5 Launch [View article]
Nice straightforward analysis. Fibonacci analysis of the stock movement correlates slightly below your upper estimate but I plan to sell into a topping market and would be satisfied with a 5% move since I'm trading options (bullish/long) on Aapl. I am curious to price behavior in the days and month after new iPhone releases also, but will do my own homework on that question. Apple has recently released sales data immediately after sales dates to juice uncommitted consumers and the stock price.
The iPhone's Growth Rate Has Peaked [View article]
Charlie, by now you must realize you are way off base. I hope the seeking alpha editors will stop publishing such off-base articles as yours. AAPL has global demand beyond of any of its competitors with much higher per-unit margins to drive global growth. Go ahead and short the stock, I'll be on the buy side of your trades.
Top 5 Takeover Targets In The Mobile Internet Space [View article]
$GLUU has vertical game integration (all in house development) Very informative audio article on GLUU via Bloomberg's Taking Stock free audio interview posted 7/13/12 with CEO De Masi.
Top 5 Takeover Targets In The Mobile Internet Space [View article]
A good summary of stocks I agree have potential. I have long positions in MITK and GLUU not because of their strategic value (takeover) but because their business fundamentals (market share, technology leadership, customer satisfaction & mobile industry niche) make sense. The takeover values are an added value. BTW, MITK is working to resolve a patent dispute with a key corporate customer. I expect it to be resolved with 'no harm' to MITK which would boost their stock price right back into the $7-$8 range. I keep track of the other stocks you mention, but my speculative portfolio has a full tank of these shares already. A cheap way to play the spec is to buy a small Call option position. Both MITK and GLUU have option trades - but beware of the risk.
Thanks for the article and responses to comments. We all know its easier to comment than to prepare an article. I am new to options and read your article with the idea of using it with any stock in a similar scenario later. It is an 'advanced' idea so I personally don't plan to implement this in the next few months but I am encouraged that such strategies are available. Perhaps you could write a 'companion' article on how someone like me could consider an Apple play for the upside with little risk and a stop using 2% of my portfolio (let's say risk $5k). I'm aware S&P is regularly writing such articles. I've personally been into AAPL with between 200 and 50 shares. Always made money. Currently I'm at zero but plan to go into the pool in the next week or two, based more on macro conditions.
Good luck on the July 21's - that's too OTM for my taste on a high vol trade like VIX. I only play ITM's on VIX to increase my odds. Try a look at putting Puts on some Lg Cap stocks that are at all-time-highs. Do a put one notch below their value tomorrow - research the volatilty and odds and you will rest better in my humble opinion.
Wow, lot's of comments from Alpha readers, but I hope the author of this article can update some of his own new responses. A few comments of my own: I am playing small (1/2% of my portfolio) positions in VXX July call options. As one comment foretold, I have seen it drop to 50% value and then run up the last few days to break even. I'm even again today. Why I bought: My entry point was not perfect, but I based my purchase two weeks ago on THIS WEEK's events (I knew two weeks ago that key Europe mtgs, economic reports, etc.) were due. I am assuming rising Put activity throughout this week with contango now washed out from the June expirations. Thus, if the July VIX is going to 'hit the fan' (in a good way) it should peak early next week and I sell before further value decay (thanks to the writer above on 7% decay analysis). I would never buy a 'long' option on VIX. Better choices abound (Puts on GE, WMT, Tech stocks, etc). Ultimately the VIX chart is telling us that most of the risk is already factored into the market (few chartists expect $VIX to go above 25/28). So if you worry, go to cash and wait for the bottom to prove its self. I'd rather have cash than loose 10-20% of my portfolio in a silly VIX play.
The 'Yield As Loud As You EnCana' Trade [View article]
Thanks for the suggestion. I'll ponder it once the smoke clears on the macro-economic driven market fears. I agree you were using this company as an example, not a recommendation. On CNBC they did think ECA has a great upside on a long investment.
The 'Yield As Loud As You EnCana' Trade [View article]
Joe: thanks for the article. Good summary on covered calls, Bad timing of the release of it today with EnCana down 8.5% today, on CNBC, etc. So, as a new student/trader of options, what type of option would you (and other readers) suggest now if I assume, a) the stock is oversold and b) I want to take advantage of a fast option trade (in the next 30-60 days) for part of my investment and c) want to go long with another part of my investment. Thanks again for your excellent article.
A four (going on 5) day wipe out in the VIX (VXX -2.1%) erases nearly the entirety of its 10-week advance, as the lack of disaster this weekend in Greece is enough - for now - to allow markets to move on. Also hurting VXX returns is a volatility market in contango, forcing losses on holders as futures contracts get rolled every 3 months. [View news story]
Too cheap to not take a small option position in $VXX. I'm long Sept calls in/near the money. The euphoria of the Greek vote and Fed mtg will evaporate by EOM/early July.
Will The 'Greekend' Bring Higher Volatility? A 3-Way Weekly Option Spread [View article]
Let's all chat after Monday close. I will post on StockTwits under the $VXX symbol as well. Thanks all for your inputs. Honest, constructive comments help us flourish and the author and commentators all get kudos!
Questcor Pharmaceuticals: A Risky Opportunity For Option Traders [View article]
There Are No Strategies For Making Extraordinary Returns With Apple Options [View article]
2 Strategies For Making Extraordinary Returns With Apple Options [View article]
2 Strategies For Making Extraordinary Returns With Apple Options [View article]
Apple: Making Money On The iPhone 5 Launch [View article]
I am curious to price behavior in the days and month after new iPhone releases also, but will do my own homework on that question. Apple has recently released sales data immediately after sales dates to juice uncommitted consumers and the stock price.
The iPhone's Growth Rate Has Peaked [View article]
Top 5 Takeover Targets In The Mobile Internet Space [View article]
Top 5 Takeover Targets In The Mobile Internet Space [View article]
Apple And The Triangle Option [View article]
Buy The VIX For A 200% Gain [View article]
Buy The VIX For A 200% Gain [View article]
A few comments of my own: I am playing small (1/2% of my portfolio) positions in VXX July call options. As one comment foretold, I have seen it drop to 50% value and then run up the last few days to break even. I'm even again today. Why I bought: My entry point was not perfect, but I based my purchase two weeks ago on THIS WEEK's events (I knew two weeks ago that key Europe mtgs, economic reports, etc.) were due. I am assuming rising Put activity throughout this week with contango now washed out from the June expirations. Thus, if the July VIX is going to 'hit the fan' (in a good way) it should peak early next week and I sell before further value decay (thanks to the writer above on 7% decay analysis). I would never buy a 'long' option on VIX. Better choices abound (Puts on GE, WMT, Tech stocks, etc). Ultimately the VIX chart is telling us that most of the risk is already factored into the market (few chartists expect $VIX to go above 25/28). So if you worry, go to cash and wait for the bottom to prove its self. I'd rather have cash than loose 10-20% of my portfolio in a silly VIX play.
The 'Yield As Loud As You EnCana' Trade [View article]
The 'Yield As Loud As You EnCana' Trade [View article]
A four (going on 5) day wipe out in the VIX (VXX -2.1%) erases nearly the entirety of its 10-week advance, as the lack of disaster this weekend in Greece is enough - for now - to allow markets to move on. Also hurting VXX returns is a volatility market in contango, forcing losses on holders as futures contracts get rolled every 3 months. [View news story]
Will The 'Greekend' Bring Higher Volatility? A 3-Way Weekly Option Spread [View article]