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Let's Trade Options

  • #2,301
  • Dec 30, 2013 5:28pm Dec 30, 2013 5:28pm
Quoting The Fool
Some things in the earnings radar for the January cycle: MU - 1/7, close..............................C - 1/16, open BBBY - 1/8, (?)..............................INTC - 1/16, close AXP - 1/13, (?).............................UNH - 1/16, open MU - 1/13, (?)..............................GE - 1/17, open BAC - 1/15, 0700...........................SLB - 1/17, open COF, 1/16, close............................WFC - 1/14. 0800
Opening up a trade on Citi when markets opens tomorrow, will look at volume and spreads as it will be thinly traded. Looking to long a strangle $55 call and $49 put for a total cost of $1.20 and this will be Feb 22 2014 options expiry, so plenty of time.

Today's closing price was $51.92, this will be a earnings strategy

Citigroup, Inc. (C)
-NYSE
51.92 http://l.yimg.com/a/i/us/fi/03rd/down_r.gif 0.34(0.65%) 21:00|After Hours: : 51.92 0.00 (0.00%) 23:06
  • #2,302
  • Dec 30, 2013 5:29pm Dec 30, 2013 5:29pm
Quoting The Fool
{quote} finger on the trigger for a couple hours as NFLX fell further & bounced at $360, wanted to sell Jan $300 puts for good credit on the spread, couldn't take the shot....and then she rose back to green territory, > $367 But I see some downside movement AH, the company put news out at the close - a new, cheaper plan for 1-stream users - this I think is going to be a blow for the stock price in the near term, so I will be back in the deer stand early tomorrow....at some point just gotta blaze, need my meat....
could go as low as $320
  • #2,303
  • Dec 30, 2013 6:24pm Dec 30, 2013 6:24pm
Quoting Cecil Gee
{quote} could go as low as $320
Well I am watching closely. If we can get a steady slide I'd like to sell Jan 24 puts as they get fatter, and I'd like to get those under $300 and still get a nice credit going on the spread. Puts have to survive earnings out near Jan opex, a little scary, don't want to be too high there. If we can get a dip into $35x.xx tomorrow I might have to go...

I bought the $295 Feb puts when NFLX was around $375. If it do $320 before Jan opex I would be like $10-$15 net, be a great way to start the year. Still burning about TWTR, was just a hair away from getting on cheap puts there on 12/26 , oh well....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,304
  • Dec 30, 2013 6:31pm Dec 30, 2013 6:31pm
Quoting Cecil Gee
{quote} Opening up a trade on Citi when markets opens tomorrow, will look at volume and spreads as it will be thinly traded. Looking to long a strangle $55 call and $49 put for a total cost of $1.20 and this will be Feb 22 2014 options expiry, so plenty of time. Today's closing price was $51.92, this will be a earnings strategy Citigroup, Inc. (C) -NYSE 51.92 {image} 0.34(0.65%) 21:00|After Hours: : 51.92 0.00 (0.00%) 23:06
Many/most of the big banks have earnings out mid Jan, I might be a scalper there, C looks OK, out Jan 16...just at a glance looks like C can move $3-$4 on release days, late week $1 otm strikes will be pennies....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,305
  • Dec 30, 2013 6:41pm Dec 30, 2013 6:41pm
Quoting The Fool
{quote} Many/most of the big banks have earnings out mid Jan, I might be a scalper there, C looks OK, out Jan 16...just at a glance looks like C can move $3-$4 on release days, late week $1 otm strikes will be pennies....
they will increase the price of those options significantly as the IV will be high due to the release
  • #2,306
  • Dec 30, 2013 6:44pm Dec 30, 2013 6:44pm
Quoting The Fool
{quote} Well I am watching closely. If we can get a steady slide I'd like to sell Jan 24 puts as they get fatter, and I'd like to get those under $300 and still get a nice credit going on the spread. Puts have to survive earnings out near Jan opex, a little scary, don't want to be too high there. If we can get a dip into $35x.xx tomorrow I might have to go... I bought the $295 Feb puts when NFLX was around $375. If it do $320 before Jan opex I would be like $10-$15 net, be a great way to start the year. [b][color=black]Still burning about TWTR,...
I'm still not trading TWTR as i still need another 4 months of price action and data to feel comfortable with it
  • #2,307
  • Dec 30, 2013 6:46pm Dec 30, 2013 6:46pm
It makes me more interested with this tread
  • #2,308
  • Dec 30, 2013 6:46pm Dec 30, 2013 6:46pm
Quoting Cecil Gee
{quote} could go as low as $320
after $320 then I may look to 267
  • #2,309
  • Dec 30, 2013 6:55pm Dec 30, 2013 6:55pm
Goldman sachs are also due on the Jan 16, so will post a trade on that when I've worked out price risks
  • #2,310
  • Dec 30, 2013 9:06pm Dec 30, 2013 9:06pm
Quoting Cecil Gee
Goldman sachs are also due on the Jan 16, so will post a trade on that when I've worked out price risks
GS looks good, too....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,311
  • Dec 31, 2013 9:51am Dec 31, 2013 9:51am
Quoting Cecil Gee
{quote} Opening up a trade on Citi when markets opens tomorrow, will look at volume and spreads as it will be thinly traded. Looking to long a strangle $
55 call and $49 put for a total cost of $1.20 and this will be Feb 22 2014 options expiry, so plenty of time. Today's closing price was $51.92, this will be a earnings strategy Citigroup, Inc. (C) -NYSE 51.92 {image} 0.34(0.65%) 21:00|After Hours: : 51.92 0.00 (0.00%) 23:06
Instead I have longed a strangle on CITI with closer strike prices. Long call $52.50 at $1.49 and long $50 put at 93c for a total cost of $2.42 or $242. All Feb 22nd 2014 expiration. Earnings out Jan 16

C Feb 2014 52.500 call (C140222C00052500)
-OPR
1.49 http://l.yimg.com/a/i/us/fi/03rd/up_g.gif 0.04(2.76%) 15:26

C Feb 2014 50.000 put (C140222P00050000)
-OPR

0.93 http://l.yimg.com/a/i/us/fi/03rd/down_r.gif 0.02(2.11%) 15:26
  • #2,312
  • Dec 31, 2013 1:45pm Dec 31, 2013 1:45pm
No holiday hours for New Years Eve, but puny volume, I will be looking for entries on busier days I expect.

Thanks to all who have contributed to the thread here. Have a happy and prosperous 2014!
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,313
  • Dec 31, 2013 1:48pm Dec 31, 2013 1:48pm
Quoting Cecil Gee
{quote} Instead I have longed a strangle on CITI with closer strike prices. Long call $52.50 at $1.49 and long $50 put at 93c for a total cost of $2.42 or $242. All Feb 22nd 2014 expiration. Earnings out Jan 16 C Feb 2014 52.500 call (C140222C00052500) -OPR 1.49 {image} 0.04(2.76%) 15:26 C Feb 2014 50.000 put (C140222P00050000) -OPR 0.93 {image} 0.02(2.11%) 15:26
What will you do if one leg is well itm right before earnings?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,314
  • Edited 4:30am Jan 1, 2014 3:43am | Edited 4:30am
Quoting Cecil Gee
{quote} Instead I have longed a strangle on CITI with closer strike prices.
I like your idea there, CG, and I might do the same thing on GS. I like the ~$15 moves pre/post earnings I see for GS, and the idea will be to strangle the Feb strikes and catch some volatility in the Jan earnings release. If GS moves well pre-earnings, I might roll some profits into a weekly post-earnings cheap strike. Feb expiry might also be kept in play with further long or short options.

Looking at Feb $170p/$185c @ $2.63/$2.20, net $4.85 debit.

....might sell the Jan 10 $170p at the same time for $0.30 credit
Attached Image (click to enlarge)
Click to Enlarge Name: 2014-01-01-GS.png Size: 138 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,315
  • Jan 1, 2014 4:34pm Jan 1, 2014 4:34pm
Quoting The Fool
{quote} What will you do if one leg is well itm right before earnings?
IF i can more than double my initial investment then I may close the lot
  • #2,316
  • Jan 1, 2014 4:35pm Jan 1, 2014 4:35pm
Quoting The Fool
{quote} I like your idea there, CG, and I might do the same thing on GS. I like the ~$15 moves pre/post earnings I see for GS, and the idea will be to strangle the Feb strikes and catch some volatility in the Jan earnings release. If GS moves well pre-earnings, I might roll some profits into a weekly post-earnings cheap strike. Feb expiry might also be kept in play with further long or short options. Looking at Feb $170p/$185c @ $2.63/$2.20, net $4.85 debit. ....might sell the Jan 10 $170p at the same time for $0.30 credit {image}
yep will do the same on GS too
  • #2,317
  • Jan 1, 2014 9:54pm Jan 1, 2014 9:54pm
Quoting The Fool
{quote} ... I bought the $295 Feb puts when NFLX was around $375. If it do $320 before Jan opex I would be like $10-$15 net, be a great way to start the year. Still burning about TWTR, was just a hair away from getting on cheap puts there on 12/26 , oh well....
If no downside follow-through Thursday will probably sell these puts & put equity to work elsewhere. Given the large premium even a 10% winner is a nice little chunka dough.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,318
  • Jan 1, 2014 10:15pm Jan 1, 2014 10:15pm
Just found the thread. Option trade all the time. Nothing fancy... Straight up trades to the up or down.... Anyway, Home building on the move. Check the charts. Check the ETF and the individuals. I have rules that I must stick to and they required me to cash out already as my target percentages were hit. I see way more to the upside. Due your own due diligence. Something looking interesting in Financials (to the upside). Regions Financial in particular. Not quite sure yet. Will post my next trade when it comes... Peace

Earnings coming for many end of January. I stay away from these weeks. Doesn't fit my style...
SPC * Swollen PocketZ Crew!
  • #2,319
  • Jan 1, 2014 10:19pm Jan 1, 2014 10:19pm
Quoting JoeNY
Just found the thread. Option trade all the time....
hey you're welcome, Joe - stop in anytime & show us what you're doing.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #2,320
  • Edited 11:30pm Jan 1, 2014 10:35pm | Edited 11:30pm
Thanks Bro, Like I said nothing fancy. US Equities... I trade the first ones in the money and buy myself at least a minimum of 30 days to reach my target percentage then I'm out. Most trades take 5 or less if things go as planned. Only deal with the penny spreads. There's about 350 of em'. For those that don't know you can download a list from CBOE. Be back soon...

https://www.cboe.org/publish/PennyPi...lotClasses.csv


Quoting The Fool
{quote} hey you're welcome, Joe - stop in anytime & show us what you're doing.
SPC * Swollen PocketZ Crew!
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