Stock options

[Creepusmaximus]

How did you find KRY anyway? I've never heard of that company. Is this just a random speculation or did you do some stock screens?

Up to $1.50 on the Jan. calls.
It was a crammer pick about 3 or 4 months ago. He finds some good stocks but it's usually a good idea to wait a while and do your DD before you buy. He had the CEO on mad money and basicly I put it on my watch list and when it dropped under $3 I started watching it hard trying to find a bottom. I find stock picks all over the place, you never know what useful info will pop up then you need to really research it. Don't just take some guys stock pick and buy it. No one is 100% right, for that matter it's very hard to be 75% right.

 

[charx22]

Up to $1.50 on the Jan. calls.
It was a crammer pick about 3 or 4 months ago. He finds some good stocks but it's usually a good idea to wait a while and do your DD before you buy. He had the CEO on mad money and basicly I put it on my watch list and when it dropped under $3 I started watching it hard trying to find a bottom. I find stock picks all over the place, you never know what useful info will pop up then you need to really research it. Don't just take some guys stock pick and buy it. No one is 100% right, for that matter it's very hard to be 75% right.

ahhh Cramer. I wonder how many people were screwed over the ZZ tip.

 

[ZKaudio]

best investment advice I ever got...











learn with other people's money

 

[Creepusmaximus]

ZZ screwed a few people I bet. BTW Crammer sucks at retail. I stay away from retail because it's a guessing game unless you have a way to see inside sales figures.

Learning with other peoples money is always a good way to start. Every time i learned a new way to trade i LOST MONEY AT IT until I figured it out. I short a lot of stocks now and do well at it but I've made some stupid mistakes in the past. Options are really easy to lose money at. Writing options isn't an easy thing either.

Good luck.

 

[charx22]

ZZ screwed a few people I bet. BTW Crammer sucks at retail. I stay away from retail because it's a guessing game unless you have a way to see inside sales figures.

Learning with other peoples money is always a good way to start. Every time i learned a new way to trade i LOST MONEY AT IT until I figured it out. I short a lot of stocks now and do well at it but I've made some stupid mistakes in the past. Options are really easy to lose money at. Writing options isn't an easy thing either.

Good luck.

Options are almost like going to Vegas. You can lose it all if it goes the other way.

 

[indyjones]

Straight from the option floor

First do you want to own any of these stocks long term?

If you do then I have a much better strategy for you.

Take your first option

BAC JAN 2009 50.000 CALL @6.40 TARGET 60
if the stock does go to 60 you make 3.60 less commissions
but if it stays below 56.40 you lose money

But let say you SELL the same PUT for 6.00

Then if the stock goes to 60 you make 6.00

you dont really "lose money" until the stock goes below 44.00.

If the stock is 58 at expiration. You end up buying the stock for 50-6 = 44 and it is trading for 58. You can turn around and sell the stock at the market or buy back the put to close your account.

You get hurt if the stock goes way down( same risk as owning the stock). If the stock goes to ZERO or way below 50. You lose for example at a stock price of 30, 50-6 = 44. So here you own the stock at 44 and it is trading at 30(OUCH)

Now if your real lucky and you collect the 6.00 you can turn around and buy a call for free or buy the stock at a 6.00 discount, which is like 10% discount from 60.

This is a little advanced and alot of people say selling put options is unlimited risk. But but buying stock also has the same risk on the downside.

Of course I cant offer financial advice since I am not licensed.

And as always consult your financial adivisor before any significant investment

 

[Creepusmaximus]

You know what I would do. If your going to hold for 2 or three years I would buy home builders. Their cheap right now and the baby boomers are retiring. Housing market will be strong after this little correction is over. I like toll brothers BTW.

 

[BonerBoy]

Up to $1.50 on the Jan. calls.
It was a crammer pick about 3 or 4 months ago. He finds some good stocks but it's usually a good idea to wait a while and do your DD before you buy. He had the CEO on mad money and basicly I put it on my watch list and when it dropped under $3 I started watching it hard trying to find a bottom. I find stock picks all over the place, you never know what useful info will pop up then you need to really research it. Don't just take some guys stock pick and buy it. No one is 100% right, for that matter it's very hard to be 75% right.

As the old saying goes, anyone who is right even 51% of the time can go to Wall Street and make $1 million a year tomorrow.

 

[BonerBoy]

The bid/offer spreads are too big for retail investors to succeed trading options. Also, you're probably buying options to get a leveraged position, not to trade the implied volatility of the shares, which means you're also taking positions in second-order risks you really don't want. Point being, you shouldn't trade stock options at all.

If you want leveraged positions, get yourself a futures account and trade that way. There are single-stock futures on most of the issues you named. That way you don't bleed time value and you get much tighter markets.

I don't plan to trade them, I plan to buy and hold them

I'll look into the stock futures, thanks `

 

[BonerBoy]

No, I trade options and those are not good picks and your over paying as far as I'm concerned. Your in the money at least but the time premium is going to get you. MS and IBM are not going where you think they're going. Your B of A is probably your best pick.

I would much rather buy something like PALM 15 leaps @ 1.70. For that matter I bought KRY 2.50 calls@ .75. Jan. 07's, that's risky but it can't go down much, not much of a premium and the pay off can be huge.

I wouldn't do what your doing. Use options to hedge or to full on speculate. Not something in between.

Not good picks?

BAC JAN 2009 50.000 CALL @7.00 up .60 X 10c's = $600

PEP JAN 2009 60.000 CALL @12.50 up 2.5 X 5c's = $1250

MSFT JAN 2009 25.000 CALL @5.14 up .44 X 10 = $220

IBM JAN 2009 80.000 CALL @12.70. up .70 X 5c's = $350

PNRA JAN 2009 50.000 CALL @17.20 up 5.20 X 5c's = $2600

I"ll let my picks speak for themselves, though I havent bought yet

MS and IBM are not going where you think they're going. Your B of A is probably your best pick.
.

Actualy thats what the S&P analysts have they're 12 mo target at. all of them are rated strong buys, so why not take advantage of the leverage an option (leap) provides?






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