Category: Options


Long the YEN

I posted about this trade here: http://ibankcoin.com/xtrada/2013/01/02/happy-new-year-and-going-long-the-yen/

Basically it reached the target I set in November 2012 so I thinking we’ll get a pullback. It’s very risky since the YEN looks like it’ll fall forever.

Bought some FXY Feb 115 Calls:

Yen_030113

It feels a bit early so I’m willing to buy additional calls down to the low $111 level in FXY.

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FMCN , GMCR – Rolling the Dice

No great technical setups….Bought the following calls:

FMCN Dec 26 @ 0.45  It’s been beaten down so bad how much worse can it get??? 🙂

GMCR Dec 33 @ 1.43  It still has a huge gap to fill so earnings is a good catalyst to do it, that’s the theory at least.

UPDATE (Nov. 28):

GMCR got a nice pop this morning, sold out at $3.10 for $1.67 profit, a nice little gambling bonus. Unfortunately I sold close to the open so I didn’t realize another 60 – 80 cents of profit had I wait after the first 30 mins. With the market tanking I didn’t want to take the risk and sold out.

FMCN did not gap up but is moving up nicely in the first half of the day. Since the option has some time left I’ll see how it does over the next week. I probably should just sell out at break even but since the option was so cheap I’ll let it ride.

Earnings – ANF

ANF looks ripe to make a move but the options are very expensive. They announce earnings before market open on Nov 14th.

Let’s try a simulated Strangle for fun: Nov Call 31.5 @ $1.69 / Put 31 @ $1.74

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ANF seems like a great stock to sell options against, will look into it.

UPDATE 10:29am : What the heck, did ANF cure cancer or something??? They gapped up over 25%!  the Nov 31 calls are at $8.55.  I guess I should have played this one.

Earnings plays – IGT, MTG, FWLT (Update)

The day following earnings was pretty much a non event. All 3 options are underwater. I think when I use options I should buy with at least 2 weeks until expiration.

IGT – Call 14 @ $36

It gapped up the next day on good earnings and then ended the day flat. Will see if it can continue the momentum upwards.

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MTG  – Strangle Call 2/Put 1.5 @ $11

Started well by gapping down on earnings and then promptly filled the entire gap. Oh well.

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FWLT – Call 24 @ @26

This one had a small pop and then ended the day down. Pretty much a non event. We’ll see what the next few days bring.

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a bullish Butterfly on this week’s SPX

Butterfly on this weeks SPX

this is a CBOE Video, which I find very instructive

Options, Options, Options

tiptoptp's Blog

Here is link to a great resource and free online education on Options and Options Trading:

http://www.cboe.com/LearnCenter/Default.aspx

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Earnings plays – IGT, MTG, FWLT

More fun with options. None of these setups are great, but they’re cheap and with the markets oversold we can either get a snap back reversion to mean or a panic sell off, both are good for earnings plays. If the market wasn’t so crazy I probably would not be taking these trades.

Nov. Expiration

IGT – Call 14 @ $36

MTG – Strangle Call 2/Put 1.5 @ $11

FWLT – Call 24 @ $26