I will be heading out of town at lunch time this afternoon. In lieu of our usual After Hours with Option Addict meeting, I have provided a link and password to attend a live session this afternoon. I’ll be giving a quick presentation about the market at noon, followed by Q&A. We will then have live entertainment followed by cocktails and a meet and greet.
In all seriousness, hop on and mix it up with me. Log into the After Hours with Option Addict blog, link and password will be there. If I don’t see you, have a good weekend.
OA
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Jeff,
What do you think of TSL? Patiently long here.
Thanks
You bought into this during its consolidation, anticipating a breakout I assume?
have a good weekend Jeff. See the NUGT boner starting? yesterday was an absolute sham
Stop looking for boners.
Have a good weekend.
LOL!
GDX is up over 20% already since beginning of June. You’re expecting that it’s just starting now? You really don’t get how all this works do you?
shut it u piker muppet
Yes, sir. I bought recently and am flat. Looking for a break here. Apparently a dumping ruling pending from WTO keeping things on check for now. Fundamentally looks good in a good sector.
My thoughts…
If you bought during consolidation…and are still in consolidation…there’s not much to report.
Havent had my coffee but the password doesn’t work – it was the same one as yesterday.
nevermind I am an idiot
I’ll bring some cheese…
I got DE for investment, looking good here. What do you think, OA ?
it’ll look even better when it stops going down. 🙂
Not a bad location
$CRM baby… showing some good strength today.
For those that wanted…here is APOL pre earnings pic:
http://ibankcoin.com/hattery/files/2014/07/apol.jpg
OA… any opinion on an ALK short here? We re on the edge of a volume pocket that runs down a little under $40. Options are decent with a stop at todays high.
I don’t think these airline stocks can take much more bad news without starting to show it.
I like DAL also with a stop at yesterdays high. Looks like a 1 2 3 top, down to $34
$FSLR volume is spectacular today.
Hat tip for $JMEI. Out with a 45% profit.
I bot X FSLR SINA this morning.
Is it me or are gains muted. Is it the rising vix today?
jeff , thinking of going long on FSLR stock .. what do you think
Out Gold futures from yesterday +11.5. Killed it this week!
chiefton – well done! That was slick…
Reyamadhava,
I am the resident FSLR bull here.
Bought FLSR yesterday. Thanks OA
UNXL Aug options perking up with the stock sleeping. Interesting.
Thanks UncleBuccs. Options question for anyone. I’m still new to the option game as I’ve been a stock and futures guy for a few years but I have calls in CLF August 18’s. It’s past earning and up 6% today but the options have barely moved. Any easy answer?
Simple answer? Volatility was bid up prior to earnings, now that they are past it has collapsed and it trades closer to intrinsic value. Also, you are losing time via theta burn as each day goes by.
Besides some of what Badduck mentioned…look up some option greeks like delta and gamma. with CLF trading at 16 after $1 move, your 18 strike is still way out of the money, so $1 move in the underlying is a minimal move in an option with a strike that far out of the money. As CLF trades higher/closer to your 18 strike price, you’ll see a higher correlation between stock price nominal increases and option price increases….you’ll get closer to a 1:1 relationship. Delta on that option is only .186 It was even less prior to today’s move. The strikes closer to 16 have a higher delta and will move more step per step. So, generally, you’ll want to pick an option 1 or 2 strikes out of the money for a shorter term option play if you expect a big move.
Easy Answer: 18 strike option was too high/too far out of the money if you were expecting a bigger increase in option price.
short NQ 3953.5
Hold or sell JMEI
I’m holding
I sold some, if it pulls in, I might buy some back. Otherwise letting some of them run.
Looks like you played that perfectly if you wanted to hop back in sub-30 in just 1 day, yoshii
Thanks for response to the option question. What option would have given me the best bang for my buck as I was right on the move and my price target is 19? I feel options are good for my style but I’m still unsure how to pick the right option to maximize the move.
I also sold my NQ -2.
Yoshii, after re-reading your response I think you answered my question. I should have gone with a strike price of 16 or 17 but then the downside is you have to pay more? Is funny because there is so much more that goes into options than just getting the pick right but I do love the downside risk and leverage.
you got it. was gonna post this, then saw your response:
I’m not saying your 18 strike is right or wrong, if it moves to 19 by Aug expiration, then you’ll have a huge win with the 18 strikes that you paid nickels for. Think of it this way. Strikes of 15, 16, 17, 18. Scenario: Aug expiration CLF pulls back to 15. all Strikes worth $0. If 16 at expiry then only 15 strike worth $1, rest $0. etc, etc…Even if CLF climbs in price slowly up until expiration all the way to 18, your option will become basically $0. You are holding an icecube, as time goes on, you’re getting time decay, which is melting the price of the option. There’s a lot to consider when buying an option, but if you pick one too far out of the money, you can be right about price direction, but still lose if it doesn’t move fast enough to your target. Paper trade in your account if you can, all of the strikes around your target, track them and see how they behave. Or, find an options calculator online and play around with different scenarios to see how outcomes differ. I’m not the best at explaining this, but you’ll get it if you start reading up on it and seeing it in action.
Thanks that’s very helpful. I’m going to give it another few weeks and see if I can really get it or I will just go back to trading stocks. It’s a tough one to swallow when your getting the direction right but nothing to show for it. Anyway thanks again and enjoy the weekend!
I switched from options to stock only about 6 years ago and have been killing it. Always got the picks right but the timing wrong so stocks work better for me. Good luck.
Chiefton,
I’ll pen a blog on this topic for you soon.
Thanks OA that would be great.
I’ve done a fair amount of reading and studying this weekend of my own trades and realize that while my timing isn’t nearly as good as yours it’s actually one my strengths and my average hold time is usually less than 2 weeks. Therefore, I think I need to purchase options that give me a couple of weeks before expiration which cost less and are a strike or two out of the money. I know I’ll have to be adaptable but I’m going to try and work off these parameters.
Any advice is always appreciated but that’s the way I’m going to attack this week.
http://news.investors.com/072514-710517-china-solar-duties-lift-sunpower-hit-chinese-firms.htm?ven=yahoocp&src=aurlled&ven=yahoo
http://www.cnbc.com/id/101868438
Nice.
How lucky that we just happen to be in FSLR.
Wish it would have posted during the day – was watching the commerce site for this news during the day.
Does anything useful ever post during the day lol? Everythings an overnight gap now
Buy Natty gas futures here 3.746. This was the dip I was looking for.
Would UGAZ work here as well?
Should work great. I’m only playing for an oversold bounce so I won;t be in it that long. The move should be good though given how much it has sold off.
I got puts on COH morning and some asshole goes and gets almost 200 calls all at once.
Buyer from below in IWM
The group is getting quiet (discouraged). Must be a big move coming. We’ll see if $RUT holds support here.
I got nothing today. Got a watchlist, but not doing anything with it yet.
In ZNGA Sept $3s.
USU, GRPN and YOD look fairly actionable.
wild ride in Natty….this is what happens at a bottom. I’m holding.
CLNE here ? I’m holding for buyout future.
Out BWLD. if you got in the day after CMG earnings, you got a nice gain, no need to risk into earnings tomorrow.
I’ve got ALL THE TZA BWAHAHA. Not really but got like 10 same week 17s on the cheap for .10 each just in case.
Ah crap that’s probably a double bottom on IWM
nah not nec discouraged…its almost august. if you read twitter traders, yould think the world is falling apart, in here though, we’ve been in front of all sorts of shit, esp china which didnt really fall off after the RUT setback..market of stocks for now…
TSLA boom
FSLR SINA NFLX working!
sina is working? looks flat on the day to me
lol. I bot 20 sept 3.5 znga
Picked up TNA down here.
Good luck good sir!
bchu big reversal from the am lows
@hesitation – gotcha. Just got my day started an hr ago. we need this lazy bastard to pop above $50 and then it can run