<p>Doct, you are a smart guy and I like what you are doing. I am not just saying that either.</p>
<p>Take a look at instead of buying the 700- 670 put spread buying something like the 700 - 690 put spread in a larger amount…so instead of buying the 700- 670 put spread twice, you buy the 700- 690 put spread 6 times…See if that can work for you. The pnl will be a little different…maybe you just watch it this time and consider something like this in the future…</p>
<p>These options have very large bid-offer spreads…that is a negative.</p>
<p>Thanks! Since I had so much unease about goog, I only did 2 contracts, but I still don’t want to lose >6600. I may still be able to get out with -11 or so (2200) above 700. It is probably best to get out but let me see what happens at the open. I’ll take a look at your suggestion.</p>
<p>GOOG is a much more complex company than AAPL. They had a great runup from the $500s by getting into the hardware business but they have some problems in other areas. I don’t like to own companies that are hard to understand (like TXN which has a million product lines). GOOG is usually pretty bad on guidance too (so is AAPL - they always lowball).</p>
<p>BTW, BCE is working out (divvy stock from last week). I only bought the small amount for my wife’s account. The dip that I was looking for to buy for my own account didn’t happen.</p>
<p>Well, its great that you were able to buy some stock for your wife…so congrats on that…</p>
<p>Besides fundamentals which you covered…</p>
<p>Goog is just harder to trade than I like…</p>
<p>It is illiquid and the markets are wide. Aapl is obviously much more liquid. Aapl has spreads that are much tighter and that don’t cost much. Of course, the trader can still lose. :)</p>
<p>I think I will try something in aapl instead…just gambling…</p>
<p>BG is an investing kind of stock - good to hold for long periods of time when central bankers are printing like crazy. Everyone needs to eat and BG sells a lot of soybeans to China. The biofuels thing helps them out too.</p>
<p>Bot 4 of the 510 calls for 12.75…sold 4 of the 520 calls for 9.25 cost $1400
Sold 2 more 520 calls for 9.25 bot 2 540 calls for 4.25. Credit of 1,000.
Position is…</p>
<p>Bot 2 540 calls sold 4 550 calls bot 2 560 calls for .61</p>
<p>So this is my position…</p>
<p>Long 4 510 calls short 6 520 calls long 4 540 calls short 4 550 calls and long 2 560 calls…</p>
<p>Cost 522…</p>
<p>Makes money between 511.31 and 536.78 or 542.61 and 557.39.</p>
<p>Max profit points… At a 520 share price the spreads make $3478 at expiration.
At 550… The spread makes $1478.</p>
<p>I figure the 540-550-560 biutterfly doesn’t cost me that much and if the
stock is anywhere near 540 before the last couple of houes of expiration…I can get out of the butterfly without losing. The butterfly gives me an extra 20 bucks to plsy with…</p>
<p>If aapl goes down after earnings I lose…</p>
<p>The commissions are probably close to $60 additional bucks so far…</p>
<p>CHK and SJT doing very nicely. I haven’t been following NG carefully though it’s one of my major positions. We’re getting some bitter cold weather this week in New England. I think that it’s a little late getting in on CHK and SJT but CHK was definitely playable on the trendline breakout.</p>