Lean With It
Wednesday, October 15, 2008 at 06:51PM It's expiration week and I'm sure your guess is as good as the market makers in terms of where prices finish on Friday. Let me tell you though, after looking over option prices at the close today, there is a ton of premium that will expire worthless on Friday. Do you have the cojones to sell any options here? Me neither. However, if you are looking to grab a piece of the pie before its gone, cover a short call with a long OTM call. While you have some significant gamma risk heading into expiration, you can still generate decent credits going 10% OTM.
There is very little I like in terms of going long, and plenty out there to short. Some of the Ag names have held up well over the last few days, and you might be able to ride a few financials and tech stocks higher ahead of their earnings announcements, but other than that the best longs are ultrashort ETFs. Sell a call with them at the time of purchase to give you a little wiggle room to the downside, if that's your fancy.
If you are on the sidelines, get into an intra-day chart and start daytrading. There is a lot of room for error when the Dow has an ATR of 550 points, and collapses several hundred points into the close of most trading sessions. "Be the ball."
Peace,
OA
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Reader Comments (10)
It's easy to lean with it, when you are strapped to the mast.
"... strapped to the mast."
That's how I feel, too.
Where O Where have all the people gone? Amazing how the number of posters have dropped to single digits! Either fair weather friends or totally mad at the Master OA? He might consider mothballing this site due to the lack of interest or dis-satisfaction.
Oh well - I will continue to muddle a long trying to figure this stuff out.
OA/TA, the OA site is a wealth of info,Please keep up for all prior readers I will join TA, once funds are rolling in from this tough market, too swing trade options.
Thanks, again for all your insights, and recent posts
ScoobyDoo, an option trader OA/TA way !!!
Seems if you want Jeff's watchlist you have to pay for it now.
People want a watch list? Here you go. Have fun.
ACI, ABX, AEM, AG, AGU, AOC, BG, BNI, CAH, CAM
CCL, CNX, CRDN, DD, DOV, DRIV, ERTS, ETH, FAF, FAST
FDG, FCX, GME, GRMN, HNZ, HOT, HPQ, ITW, LFC, LMT
LRCX, LXK, MA, MDC, MDT, MOS, NETL, NKE, NOV, NUE
OMC, OXY, PG, POT, SLAB, SU, SYY, TROW, TYC, UNP
UPL, V, VMC, YUM
May see duplicates.
ACE, AEM, ARTC, BBBY, BG, BHP, BTU, CB, CLF, CMA
CNX, CTRP, EL, ETH, FFIV, FMCN, GDX, GG, IMCL, IRM
KFT, LDK, LFC, LMT, PCLN, PETM, POT, SLAB, TROW, TTEK
WLP, WY, CF, CHH, CMED, CNW, CRK, EQ, EQIX, FLS
FSYS, ILMN, IMA, KSU, LII, MBT, NTY, ONXX, PKI, PVH
REP, RMD, RNT, ROST, SCHN, SLH, WCG
Blackdog, re "...if you want Jeff's watchlist you have to pay for it"
No, you make the Market pay for it.
.
My first real-$ trade brought in more than the monthly charge (I like to think of the charge as a "donation" - a lot like when you're in church, except the sermons are daily)
Keep the faith my friend
Its official...I'm a daytrader, lol.
Hey Micheal D?
You need to make 35% a year return on your money?
Check out FRO__it's paying a 35% dividend at these $30 prices. Put it in your IRA---
only downside is, is if they crash the oil tanker, like Exxon Valdez.
But GPS is so much better these days, I think that's a miniscule risk.
Blackdog,
Bullshit dude. I haven't made a video in a month. How many patterns are you seeing out there, oh wise one?
OA