Investing With Options

AMZN Roll

stevenplace — Fri, 30 Jul 2010 14:40:22 +0000

While we wait for AMZN to make a move, we can continue to reduce our basis in the position.

Here’s the trade for thinkorswim:

SELL -5 DBL DIAG AMZN 100 (Weeklys) AUG1 10/JUL5 10 125/110/125/110 CALL/PUT/CALL/PUT @.63 LMT

Market Wrap 7-29

stevenplace — Thu, 29 Jul 2010 21:18:43 +0000

]]>

Portfolio Update, 7-29

stevenplace — Thu, 29 Jul 2010 20:38:30 +0000

]]>

New FNSR Trade

stevenplace — Thu, 29 Jul 2010 17:14:31 +0000

]]>

Mod CTSH Position

stevenplace — Thu, 29 Jul 2010 17:06:18 +0000

]]>

Take on a little GLD exposure

stevenplace — Thu, 29 Jul 2010 16:10:00 +0000

]]>

How Option Orders Can Mislead You – A Case Study with SYMC

stevenplace — Thu, 29 Jul 2010 15:18:07 +0000

SYMC reported earnings yesterday, and the Street did not like what they had to say. The stock currently is trading down about 9%, and the options market was pricing in a move of about 5%.

The options activity, taken in a vacuum, was very bullish yesterday. The SYMC board saw calls being bot on the ask. Specifically, there was a trader that bot >18000 Sep 16 Calls on the ask (thanks @optionradar).

Source: Livevolpro.com

However, on closer inspection of the stock movement, we saw that the big order was tied to stock– about 560k shares. This made sense; the Sep 16C had a delta of about .30, and someone putting on 18550 contracts would have a directional exposure of about +560000. So instead of this being a screamingly bullish trade, this was a bullish trade on volatility.

At least that’s what I told reuters, you can see the article here.

The trader who put this on is currently at a profit of about 360k. Not bad in a day’s work.

NFLX Adjustment

stevenplace — Thu, 29 Jul 2010 14:47:50 +0000

]]>

Market Wrap, 7-28

stevenplace — Thu, 29 Jul 2010 13:02:45 +0000

]]>

Portfolio Update, 7-28

stevenplace — Wed, 28 Jul 2010 19:24:59 +0000

]]>