<p>I had sold it for 1.30 so a decent profit on it</p>
<p>Very nice…</p>
<p>My Short otm puts expired worthless…</p>
<p>My short in the money puts were exercised against my short stocks…so I have no positions there…</p>
<p>So my risk is sooooo loooooow right now…</p>
<p>I might have to do something crazy to get my risk up to a 1 on a scale of 1 to 10.</p>
<p>I am long a few shares of HGSI and GILD…nothing material…but still nice pops this week…I have owned these companies shares for 11 years…so I am down in HGSI…even
with the pop…</p>
<p>I did not think I would trade Aapl options, but the public is in there trading those Aapl options and the public doesn’t understand option pricing…So I might trade a little…mostly for entertainment value. I might not. I am also at a disadvantage compared to the market makers…and I don’t like that. :)</p>
<p>Yeah - I don’t do that skew stuff etc. - its too complicated for a theoretical physicist like myself. Option pricing on aapl should be quite interesting. Everybody expects that implied volatility is going to implode really impacting those otm options.</p>
<p>I think volatility is going to implode…unless there is a major stock split…maybe 3 to 1…but that might not be enough…might need a split of 5 or 10 to 1.</p>
<p>Look at all those fat far out premiums…</p>
<p>How much are the may 400 puts?</p>
<p>Not that I would necessarily sell those otm puts…</p>
<p>Risk----- reward…</p>
<p>I’d love to sell some aapl puts next week but the lowest price I see is 520 at 4.50. I’d like to sell something in the 400’s. I’ve also got to figure out how to protect myself this week since I would rather close my options positions near expiration in May because my max loss is 7.87 vs ~17 - 18 this week down to aapl at 550. I’ve got to find a put spread or something else that keeps me in the game at least through this week. Anybody have any ideas?</p>
<p>12,000 before 13500, place your bets</p>
<p>Qdogpa…You are on the record… You are very clear…</p>
<p>If I knew you…we might be able to trade with each other…</p>
<p>Doct…looks to me like are risking 77.87…</p>
<p>Let’s see what people come up with…</p>
<p>At 550 on May 19th, the breakeven for me is 597.87. Max loss to 550 at expiration is 597.87 - 590 = 7.87. If it goes to 550 tomorrow, the loss = 20, My max loss if it drops to 0 is 117.87 - what I paid. I doubt that will happen</p>
<p>By the way my max gain at expiration = 52.13.</p>
<p>Dstark, i am usually market psoitive, but with the Fed manipulations,it is all BS…This will go down as the largest Ponzi scheme ever</p>
<p>Well qdogpa…the Fed is making a huge bet…isn’t it? </p>
<p>Talk about gambling… Lol…</p>
<p>Doct …you are long the 480 calls…short the 650 calls long the 590 puts and short the 550 puts, all may series…correct?</p>
<p>That’s what you told me before…</p>
<p>See, dstark, I told you this thread would take off!</p>
<p>My dh bought and then quickly sold some microsoft last week. Made $900, IIRC.</p>
<p>Well…jym626…I am doing my best to keep this thread alive. :)</p>
<p>On Wall Street if you make a good call…you are a genius. And people should listen to geniuses. And act on what geniuses say.</p>
<p>Your husband made a good call…therefore he is a genius…therefore you should listen to him and therefore you should do what your husband says. ;)</p>
<p>Will do, dstark. Of course yes, he is a genius. On good days.</p>
<p>Lets not talk about all the Lehman Bros stock that we were holding when…</p>
<p>Yes - the 480 - 650 call spread cost me 101.38, the 590 - 550 put spread cost me 16.49 The breakeven = 480 + 117.87 = 597.87. Max gain = 650 - 597.87 = 52.13. Max loss at expiration for 550 = 597.87 - 590 = 7.87. Prior to expiration, since the 480 call is deeper in the money than any other option, it dominates the loss and gain. At 550 today, the 480 is worth 75.79, the 650 is worth 3.52, the 590 put is worth 53.14 and the 550 put is worth 27.53 which works out to 97.88 or -20 from the 117.87 that I paid.</p>
<p>Better results playing craps, where the booze is free…play the pass line, back it with full odds, and play the 6 and 8…</p>
<p>Doct…I am not a theoretical physicist. I am having a lot of trouble with your numbers.</p>
<p>I don’t know how you can lose 7.87 at 550 and lose more than 70 between 550 and 480…</p>
<p>One of my oldest and best friends had a graduate degree in physics…and he was a market maker in the same pit as I was in the 80’s. He is a super bright guy…</p>
<p>but…he blew up in 1985.</p>
<p>He is still a super bright guy though.</p>
<p>I am going to go to the store…I will be right back…</p>
<p>I think if you buy the 550 put—515 put—480 put butterfly…you cut an enormous amount if risk…for about 10 bucks…</p>
<p>Worth it?</p>
<p>I lose only 7.87 to 550 because the P/L is flat from 590 to 550. I look at the butterfly you suggest. I think that may I can do something with a put spread through April 27 since I expect the action to be this week.</p>