Copyright Notice

All contents of this blog are protected by copyright and may not be reproduced in any form without prior written consent from the author. Copyright 2010, 2011, 2012, 2013, 2014 Jawad Akhtar.

Monday, October 18, 2010

Strangle Candidates

First congratulation on playing the Google Strangle to Iman.  Its up another $13 this morning.  I would consider taking profits soon as you are up 3-4 fold.

A similar opportunity could be present today in AAPL (Apple) - earnings after close today, and on Thursday with AMZN (Amazon).  I just think these options are very expensive, but they are expensive because they can move explosively.

A really big mover is ISRG that reports tomorrow.  That stock can easily move 50 dollars in a day.  But the options are very expensive as well.

Caution: A lot of stocks are showing peaking indicators, so its important that you hedge your bets with puts (especially in a strangle situation since its easy to become euphoric and stop buying the puts).

RIG is up nicely again today and continues its uptrend.  If you remember, we purchased RIG calls at 1.4x then sold them at 2.50 then bought them back at 1.8x something.  They are already back up around 2.30 for a nice gain but I am going to let them run a bit longer.

No comments:

Post a Comment