Saturday, October 27, 2007

 

Buy - 2 DIA Dec 140 Call @ 2.46 avg

If November and December are strong months, this position could do well. Bought 2 options over the past couple of days. I guess the fed meeting could determine the fate of this position.

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Comments:
i'm with you (and history) on this one, Nov & Dec should be good! nice call and congrats on holding POT through the pain.
i sold my AAPL call the daY After earnings for a descent profit (bought for 6.8 sold for 8.0). better than a sharp stick in the eye but i coulda got more earlier in the day (or less later if i held out). bottom line = it's been a volitile few days/weeks of trading.
my NOV calls are not doing that well. i got NOV80 & DEC75 on this one and they did not go up with the rest of the world on friday but IBD has NOV boxed this weekend and i still like the stock. again, time is not on my side...
im in the same boat in regards to your earlier post & building a stock portfolio. i'll stick to stocks and hit options only when there's high probablity set ups.

i might dive into spreads soon. any experience there?

GO SOX
j.M
 
j.M,
Thanks. Nice going on AAPL.
Yes, noticed the black box around NOV, hopefully the buyers will come back in.

I've helped set up a few spread and collar strategy plays for a friend of mine, but haven't traded them myself. But after the POT scare, it really got me thinking about spread plays. The past few days I've been reading up on them a bit more. They could be the way to go ... they have well defined profit and loss targets, so they might be able to get the emotions out of options trading.
Make sure your spread play has a good risk/reward ratio. I've found a pretty good site that lists most of the options plays, if not all of them, and describes them in pretty good details.
http://www.theoptionsguide.com/

Good luck!

Aj.
 
alright AJ, looks like it might be safe to creap back out and trade options again. what do you think?

i still got NOV and have some ground to make up. i also have BA that i bought near the 200ma. i have 'til January and like the way it's looking now.

time to browse my list for the next potential buy.

j.M
 
ok, here's what i dug up:

SID b/o over 80ish
DRYS b/o 130ish - this is more speculative but could be a homerun with NOV130 calls?

and here's a potential stock play:
SVR
what do you think? this turned up on my weekly list and now appears over sold. could be up & coming?

of course this all is contingent upon the bull run that i THINK will happen in the next 2 months.

j.M
 
Hi j.M,
Yep, I guess it might be safe to come out now.

SID looks good to me. Could break out anytime. The kicker - huge spread in the options. It could be a good stock play though.

DRYS is very volatile, and the options have an extremely high IV. Nov could be too close of an expiration date. It is risky, So be prepared to lose your entire premium.

SVR has gone down on higher than average volume on earnings. Usually when a stock goes down due to earnings, I try to stay away from it. Technically, it could get support around this area, but I would wait for some sort of a reversal pattern.

Good luck!

Aj.
 
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