Lowerbid - Your market view » Options

Was Friday just an exception to the rule?

gbarazani — Mon, 24 May 2010 10:50:25 +0000

Friday was a wild day in the Markets, and maybe for many good reasons.

for one it was option expiration day, after a week long of a down market there was a great opportunity for option play!!

the market huge swing (from 125 points down to 125 points up , a 250 points swing!!) presented great opportunities in the option market for that day (day of expiration)

few examples are : aapl was down to 231 in the morning and its 240 call for that day was at .25 , if you would predict the market swing and got 10 contracts @.25=$250 at the intraday trading aapl gained more than 13 points !! and that option was selling at mid-day for $5.90 so your $250 will cash out as $5900!!!

that was true more or less for many other active and dynamic stocks such as Goog, fslr, bidu , and more

it was a great option play day!!

As predicted Friday May 21st. on a down trend

gbarazani — Fri, 21 May 2010 12:16:22 +0000

Friday Sell off !!!!

As predicted yesterday by myself , the market lost steam during the early morning trading’ already at the pre-market trend showing in negative territory and more than just moderate’ it drops below 10,000!!

Another factor to take into consideration is that today is May options expiration day’ so the market may play a sea saw all day to find its correct closing mark due to options day!!

Option Play

gbarazani — Wed, 10 Mar 2010 17:58:28 +0000

When you buy or sale an option , you must be very careful and have a strategy on how you can protect your investment, in the long run with the right strategy option play is a worthy game.

in todays market behavior the Dow for example moving in the range of 10,000 and 10,700 points , really calm market in many ways , its monthly gain or lose not exceeding 10%, and if you are the one to play the market index, assume you writing up calls for April 2010 at +15% of what the market is today, most likely the market will remain at below 10% gain (if it loses then of course you gain more )at day of expiration most likely you will gain 100% of your sale, however if the market stays calm, and the closest it gets to expiration , you can buy it back and chose how much your gain is pending on the market move.

lets assume even if the market gain some and your contracts losing ground , you can always move it up a notch by buying back and selling to next level of +15% , and to protect yourself from disaster you buy some longs out of the money just in case the unpredictable happens.

good luck!