|From: rsethura (Rep: 138) reply to JEKYL2000||Date: 04/07/2011 13:33|
|Forum: Got Options - Msg #11709 - List AMSC msgs ||Thread #673201491 (Rec: 0) |
|Re: Do or Die|
so another example is the coming AAPL earning, CMG earning, ISRg earnings, normally these are volatile where they jump 10% either way, like ISRg jumped 14% for 280 stock, AAPL went from 342 to 360, CMG jumped like 30 bucks, there you can play the straddle, provide they do the expected move one way or the other....
just a few examples
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| Reply to JEKYL2000 - Msg #11702 - 04/06/2011 11:49|
Do or Die
I was looking at AMSC that they were ooohing and aaahing in the PIT from a large drop. I recorded the calls and puts from before the close since it happened after hours. This morning I looked at the same strikes and was wondering how often we could come up with the same type of scenerio.
If we had put $1,000 in the $25 puts and $1,000 in the $25 calls, our calls would have gone from $1.85 -> $0.05, and our puts would have gone from $1.60 -> $11.50. The $10,000 gain from the puts would well cover the -$1,000 loss in the calls.
I was wondering if this is a popular strategy. Finding a situation that might make or break a deal in a company and profiting off the greatest direction either way.
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