Forex catamarca.
El oro cayó más lejos de un colmo más temprano de nueve semanas el viernes mientras que los datos más fuertes que esperados de las nóminas de pago de los EEUU impulsaron el dólar y los mercados de acción, apuntalando una recuperación en equidades de la derrota de esta semana.
Jan 8, 2016 12:33 PM.
El oro cedió sus ganancias luego de alcanzar un máximo de nueve semanas por encima de los 1.100 dólares la onza el viernes, cuando China guió al yuan más alto por primera vez en nueve días, apoyando acciones asiáticas.
El Banco Popular de China fijó la tasa intermedia del yuan más alta, después de permitir la mayor caída en cinco meses en la sesión anterior. Ese movimiento, junto con la desactivación de Beijing de un mecanismo de disyuntor en el mercado de valores, envió a las acciones chinas un 2 por ciento el viernes.
El índice CSI300 se ha deslizado un 10 por ciento en la primera semana de 2016, a pesar de las ganancias modestas del viernes.
Los temores sobre la economía china asustaron a los mercados bursátiles mundiales y enviaron a los inversores corriendo a los activos de refugio seguro esta semana, lo que elevó los precios del oro bruscamente.
El oro al contado cayó un 0,5 por ciento a US $ 1,103.26 la onza a las 0314 GMT, después de subir a US $ 1.112 en la sesión, su mayor nivel desde el 4 de noviembre. Los futuros del oro estadounidense también cayeron de un máximo de nueve semanas.
“Por ahora, la única manera de negociar oro es tomar una opinión sobre los mercados de acciones y en el mercado chino en particular, ya que parece ser la fuerza motriz que está empujando el resto del espacio inferior”, dijo el analista de INTL FCStone Edward Meir.
El oro se ve a menudo como una cobertura contra la incertidumbre geopolítica y financiera, junto con otros activos de refugio, como el yen japonés y los bonos del Tesoro de los Estados Unidos. Sin embargo, los rallyes seguros tienen tendencia a ser de corta duración.
Montando en la parte posterior de ganancias anteriores, el oro se fijó para fijar su mejor semana desde agosto con aumentos de 4 por ciento.
Las acciones asiáticas cotizaron más alto el viernes, tomando señales de los mercados chinos, pero se fijaron para publicar su peor semana en cuatro años.
“El tumulto generalizado en los mercados mundiales deja a los inversores con opciones a corto plazo reducidas y algunos están optando por el oro, al menos hasta que los mercados financieros se estabilicen”, dijo HSBC.
Los activos de SPDR Gold Trust, el fondo con mayor respaldo de oro y cotizado en bolsa, subieron un 0,65 por ciento a 645,13 toneladas el jueves, el primer aumento en tres semanas.
Con el informe de las nóminas no agrícolas de Estados Unidos debidamente publicado el viernes, el enfoque más adelante en la sesión podría recurrir a la economía estadounidense.
Un informe fuerte podría impulsar a la Reserva Federal a levantar aviones estadounidenses a un ritmo más rápido. Las tasas más altas podrían disminuir la demanda de oro que no genera intereses, al tiempo que aumentan el dólar.
1 semana de opciones de comercio.
1 semana de opciones de comercio.
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OPCIONES GRATUITAS PICKS.
¿Quieres duplicar tu dinero en un corto período de tiempo independientemente de los mercados de oso o toro? Opciones gratuitas El comercio de las selecciones es un servicio gratuito que puede utilizar para generar grandes ganancias con pocos dólares de inversión. Trade Options con mi servicio gratuito que le permitirá recibir una opción de compra de acciones por semana con información de entrada, salida y pérdida de la pérdida. Este blog es mi servicio “Opciones de Opciones Gratuitas” para publicar picos de opciones de acciones de alto beneficio que son 100% o más rentables en meses o días.
Bienvenido a Free Options Picks, sus opciones completamente libres de recoger el blog para intercambiar opciones. Por último, un blog que ofrece opciones de calidad libre en lugar de sólo la cantidad de opciones de pago opciones y usted terminará perdido en toda la información proporcionada! Hay una gran diferencia entre mi sitio y los de otros. ¡Mi sistema funciona! Y, NO voy a cobrar por proporcionar estas opciones de selección ni voy a compartir cómo recojo estas opciones. Ellos son gratis y mi experiencia le dará al inversionista promedio esperanza, confianza y una ventaja estratégica en las opciones que negocian opciones de acciones de bajo precio que tienen potencial de alza significativo. De hecho, mis selecciones son cuidadosamente elegidos para hacer un gran movimiento hacia el lado positivo (llamadas largas) o la desventaja (short puts) en tan poco como 1 día. Mis resultados son reales y nuevamente mi servicio es gratis! Ahora, adelante y regístrese para obtener mis Opciones de Opciones Gratuitas al menos un día antes de que se publiquen en mi blog. Para ver nuestras posiciones actuales y cerradas, por favor, desplácese hacia abajo para seleccionar opciones de acciones de la semana! Suscribirse a:
Martes 11 de noviembre de 2008.
Opciones Gratuitas Selecciones de la Semana.
Opciones Selecciones para 5/14/09.
ACCIÓN A TOMAR HOY.
Inmediatamente ir BIIB largo comprando el BIIB julio 09 $ 50.00 llamadas (IDKGJ) hasta $ 3.10. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender IDKGJ en $ 4.20 para una ganancia del 36%. Además, coloque una pérdida de parada en $ 47.92, lo que significa que si la seguridad (BIIB) golpea $ 47.92, sale del comercio con una pequeña pérdida. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 5/21/09. La posición alcanzó la meta de $ 4.20 el 5/20/09 para una ganancia del 36%. Posición durante 7 días.
Inmediatamente vaya a Short TDW comprando el TDW June 09 $ 40 Puts (TDWRH) hasta $ 1.45. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender TDWRH en $ 2.00 para una ganancia del 38%. Además, coloque una pérdida de parada en $ 46.39, lo que significa que si la seguridad (TDW) llega a $ 46.39, sale del comercio con una pequeña pérdida. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 5/21/09. Posición cerrada el 20/05/09 con una pérdida de 20 centavos o 14%. Si se usó un stop de 10% desde que la acción despegó el primer día, entonces la posición se cerró con una ganancia del 17% con un relleno de $ 1.45 y un cierre de $ 1.70. Posición mantenida durante 1 día.
Inmediatamente vaya Short DIA al comprar el DIA June 09 $ 87.00 Puts (DAVRI) hasta $ 5.40. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender DAVRI en $ 7.30 para una ganancia del 35%. Además, coloque una pérdida de parada en $ 84.34, lo que significa que si la seguridad (DIA) golpea $ 84.34, salir del comercio con una pequeña pérdida. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 5/21/09. Opción abierta en $ 5.40 el 5/14/09 y negociado abajo a $ 5.00 antes de sacar a $ 5.70 en el día siguiente. Si se usó una parada Trailing de 10%, la posición se habría cerrado al día siguiente por $ 5.10 y una pérdida de% 15. Posición durante 2 días.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Opciones para 26/03/09.
ACCIÓN A TOMAR HOY.
Inmediatamente vaya FCX largo comprando FCX May 09 $ 45.00 Calls (FCXEI) hasta $ 3.80. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender FCXEI en $ 5.20 para una ganancia de 36.8%. Además, coloque una pérdida de parada en $ 39.63, lo que significa que si la seguridad (FCX) llega a $ 39.63, sale del comercio con una pequeña pérdida. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Lo que haces aquí es, si haces tu tarea y aceptas que la seguridad es alcista, tomas una posición larga en FCX ​​comprando una opción de compra apostando que la acción subirá. Usted pagará hasta $ 3.80 por acción, lo que significa que una opción le costará $ 380.00 más comisiones y honorarios. Recuerde, cada contrato de opción contiene 100 acciones.
Inmediatamente ir a largo CAT al comprar el CAT AUG 09 $ 31.00 Llamadas (CXJHE) hasta $ 3.80. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender CXJHE en $ 5.20 para una ganancia de 36.8%. Además, coloque una pérdida de parada en $ 29.59, lo que significa que si la seguridad (CAT) golpea $ 29.59, sale del comercio con una pequeña pérdida. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Qué usted hace aquí es, si usted hace su tarea y conviene que la seguridad es alcista, usted toma una posición larga en CAT comprando una opción de la opción que apuesta que la acción va para arriba. Usted pagará hasta $ 3.80 por acción, lo que significa que una opción le costará $ 380.00 más comisiones y honorarios. Recuerde, cada contrato de opción contiene 100 acciones.
Inmediatamente vaya largo JOYG comprando el JOYG JUL 09 $ 25.00 Llamadas (JQYGZ) hasta $ 3.80. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender JQYGZ en $ 5.20 para una ganancia de 36.8%. También, coloque una pérdida de la parada en $ 22.17, que significa si la seguridad (JOYG) golpea $ 22.17, usted sale del comercio con una pérdida pequeña. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Lo que haces aquí es, si haces tu tarea y aceptas que la seguridad es alcista, tomas una posición larga en JOYG comprando una opción de compra apostando que la acción subirá. Usted pagará hasta $ 3.80 por acción, lo que significa que una opción le costará $ 380.00 más comisiones y honorarios. Recuerde, cada contrato de opción contiene 100 acciones.
Opciones Selecciones para 2/6/09.
ACCIÓN A TOMAR HOY.
Inmediatamente ir largo FXI (China IShares) mediante la compra de la FXI 09 de mayo $ 27.00 Llamadas (FXIEA) hasta $ 3.80. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender FXIEA en $ 5.20 para una ganancia de 36.8%. También, coloque una pérdida de la parada en $ 25.70, que significa si la seguridad (FXI) golpea $ 25.70, usted sale del comercio con una pérdida pequeña. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 2/6/09. La posición no se disparó desde que la opción se abrió a $ 3.90 con la brecha de stock, que era más alta que nuestro punto de entrada de $ 3.80.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Qué usted hace aquí es, si usted hace su tarea y conviene que la seguridad es alcista, usted toma una posición larga en FXI comprando una opción de la opción que apuesta que la acción va para arriba. Usted pagará hasta $ 3.80 por acción, lo que significa que una opción le costará $ 380.00 más comisiones y honorarios. Recuerde, cada contrato de opción contiene 100 acciones.
Opciones Selecciones de 29/01/09.
ACCIÓN A TOMAR HOY.
Inmediatamente vaya MHP largo (MCGRAW HILL COMPANIES INC) comprando el MHP May 09 $ 22.50 Calls (MHPEX) hasta $ 3.30. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender MHPEX en $ 4.50 para una ganancia de 36.4%. Además, coloque una pérdida de stop en $ 20.70, lo que significa que si la seguridad (MHP) golpea $ 20.70, sale del comercio con una pequeña pérdida. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 2/6/08. Posición consiguió objetivo con un beneficio del 49,2% y un relleno de $ 2,95. Posición vendida por $ 4.40. Posición mantenida durante 8 días.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Lo que haces aquí es, si haces tu tarea y aceptas que la seguridad es alcista, tomas una posición larga en MHP comprando una opción de compra apostando que la acción subirá. Usted pagará hasta $ 3.30 por acción, lo que significa que una opción le costará $ 330.00 más comisiones y honorarios. Recuerde, cada contrato de opción contiene 100 acciones.
Inmediatamente vaya largo CVD (COVANCE INC) mediante la compra de la CVD 09 de mayo $ 45.00 Llamadas (CVDEI) hasta $ 2,80. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender CVDEI en $ 4.20 para una ganancia del 50%. También, coloque una pérdida de la parada en $ 35.00, que significa si la seguridad (CVD) golpea $ 35.00, usted sale del comercio con una pérdida pequeña. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 2/8/09. Cambie Stop Loss a $ 40.85 o la opción Trailing Stop Loss en 10%. 3/7/09. Con un relleno de $ 2.50 el 1/29/09 y una opción de stop loss de 10%, la posición cerró a $ 3.15 el 2/5/09 con un beneficio del 26%. Si se usó una pérdida de stock de $ 40.85, la opción fue cerrada el 17/02/09 a $ 2.75 con un beneficio del 10%.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Lo que usted hace aquí es, si hace su tarea y está de acuerdo en que la seguridad es alcista, usted toma una posición larga en CVD mediante la compra de una opción de compra de apuestas que las acciones van a subir. Usted pagará hasta $ 2.80 por acción, lo que significa que una opción le costará $ 280.00 más comisiones y honorarios. Recuerde, cada contrato de opción contiene 100 acciones.
Opciones Selecciones de 22/01/09.
ACCIÓN A TOMAR HOY.
Inmediatamente vaya a largo BP (British Petroleum) mediante la compra de la BP Mar 09 $ 40.00 llamadas (BPCH) hasta $ 4.70. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender BPCH en $ 6.40 para una ganancia de 36.2%. Además, coloque una pérdida de parada en $ 41.00, lo que significa que si la seguridad (BP) llega a $ 41.00, sale del comercio con una pequeña pérdida. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 1/23/09. Posición se detuvo con una pérdida de 6,7% con un relleno de $ 3,75 (Si se llenó ya que el stock se redujo). Si usted había usado una pérdida de parada en $ 41.00, habría vendido la posición en $ 3.50. Posición mantenida durante 1 día.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Lo que haces aquí es, si haces tu tarea y de acuerdo en que la seguridad es alcista, usted toma una posición larga en BP al comprar una opción de compra de apuestas que la acción va a subir. Usted pagará hasta $ 4.70 por acción, lo que significa que una opción le costará $ 470.00 más comisiones y honorarios. Recuerde, cada contrato de opción contiene 100 acciones.
Inmediatamente ir a largo MATK (Matek) mediante la compra de la MATK Mar 09 $ 30.00 Llamadas (KQTCF) hasta $ 1.65. Después de ser llenado, ponga un orden bueno para cancelar (GTC) para vender KQTCF en $ 2.30 para una ganancia de 39.4%. Además, coloque una pérdida de parada en $ 26.60, lo que significa que si la seguridad (MATK) golpea $ 26.60, sale del comercio con una pequeña pérdida. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 1/23/09. Posición se detuvo con una pérdida de 27.6% con un relleno de $ 1.45. Si hubiera utilizado una pérdida de stop en $ 26.60, habría vendido la posición en $ 1.05. Posición mantenida durante 1 día.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Lo que haces aquí es, si haces tu tarea y aceptas que la seguridad es alcista, tomas una posición larga en MATK comprando una opción de compra apostando que la acción subirá. Usted pagará hasta $ 1.65 por acción, lo que significa que una opción le costará $ 165.00 más comisiones y cargos. Recuerde, cada contrato de opción contiene 100 acciones.
Opciones Selecciones para 1/5/09.
ACCIÓN A TOMAR HOY.
Inmediatamente ir a largo XRT (Spiders Retail ETF) mediante la compra de la XRT Mar 09 $ 22.00 Llamadas (XRTCV) hasta $ 2.20. Después de conseguir llenado, ponga una buena orden cancelada (GTC) para vender XRTCV en $ 3.3 para una ganancia de 36.4%. También, coloque una pérdida de la parada en $ 20.57 que significa si la seguridad (XRT) golpea $ 20.57, usted sale del comercio con una pérdida pequeña. Si la acción despega, entonces coloque una parada de arrastre del 10% en lugar de un GTC y montarlo a mayores ganancias. 1/12/09. Posición se detuvo con una pérdida de 28% con un relleno de $ 2.08. La opción subió a $ 2.17 antes de que se retirara. Si usted hubiera usado una pérdida de stop en $ 20.57, habría vendido la posición en $ 1.50. Posición durante 7 días.
Una opción de compra, recuerde, le da, el comprador, el derecho a comprar las acciones en cualquier momento antes de la fecha de vencimiento, a un precio más bajo. Es el equivalente de ir a largo el stock – sin los grandes riesgos que implica la compra.
Lo que haces aquí es, si haces tu tarea y aceptas que la seguridad es alcista, tomas una posición larga en XRT comprando una opción de compra apostando que la acción subirá. Usted pagará hasta $ 2.20 por acción, lo que significa que una opción le costará $ 220.00 más comisiones y honorarios. Remember, every option contract contains 100 shares.
Immediately go long ANR(Alpha Natural Resources) by buying the ANR Mar 09 $20.00 Calls (ANRCD) up to $3.20. After getting filled, place a good til canceled (GTC) order to sell ANRCD at $4.40 for a 37.5% gain. Also, place a stop loss at $17.55 which means if the security (ANR) hits $17.55, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 1/6/09. Position got stopped out with a profit of 50% with a fill of $3.00. The option shot up to $5.00 before it retreated. If you had used a trailing stop of 10%, you would have sold the position at $4.50. Position held for 2 days.
A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of going long the stock — without the big risks that buying entails.
What you do here is, if you do your homework and agree that the security is bullish, you take a long position in ANR by buying a call option betting that the stock will go up. You will pay up to $3.20 per stock which means that one option will cost you $320.00 plus commission and fees. Remember, every option contract contains 100 shares.
Immediately go long SNDK (Sandisk) by buying the SNDK Apr 09 $12.00 Calls (SWQDX) up to $2.05. After getting filled, place a good til canceled (GTC) order to sell SWQDX at $2.80 for a 36.6% gain. Also, place a stop loss at $10.40 which means if the security (SNDK) hits $10.40, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits.. 1/6/09. Position got to target with a profit of 40% with a fill of $2.00. The option shot up to $2.80. Position held for 2 days.
A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of going long the stock — without the big risks that buying entails.
What you do here is, if you do your homework and agree that the security is bullish, you take a long position in SNDK by buying a call option betting that the stock will go up. You will pay up to $2.05 per stock which means that one option will cost you $205.00 plus commission and fees. Remember, every option contract contains 100 shares.
Picks for 12/16/08.
ACTION TO TAKE TODAY.
Immediately go long FCX(Freeport McMoran) by buying the FCX JAN 09 $22.50 Calls (FCXAX) up to $3.10. After getting filled, place a good til canceled (GTC) order to sell FCXAX at $4.3 for a 39% gain. Also, place a stop loss at $20.75 which means if the security (FCX) hits $20.75, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 12/17/08. Position got stopped out with a profit of 58.2%. The option shot up to $5.45 before it retreated. If you had used a trailing stop of 10%, you would have sold the position at $4.90. Position held for 1 day.
A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of going long the stock — without the big risks that buying entails.
What you do here is, if you do your homework and agree that the security is bullish, you take a long position in FCX by buying a call option betting that the stock will go up. You will pay up to $3.10 per stock which means that one option will cost you $310.00 plus commission and fees. Remember, every option contract contains 100 shares.
Picks for 12/12/08.
STAY OUT OF THE MARKET TODAY UNTIL THIS AUTO BAILOUT STUFF IS RESOLVED OR IF THE MARKET MOVES UP EVEN WITH THIS BAD OF A NEWS! IF THE MARKET MOVES UP AND CLEARS THE EVEN POINT, TAKE A POSITION IN DIA (THE DIAMONDS TRUST) BY BUYING ANY FEB 09 IN THE MONEY OPTION. SET YOUR STOP LOSS AFTER GETTING FILLED AND AS ALWAYS, IF THE OPTION TAKES OFF, SET A TRAILLING STOP. OTHERWISE, SET YOUR PROFIT AT 35%.
Picks for 12/9/08.
ACTION TO TAKE TODAY.
Immediately go long DRYS (Dry Ships) by buying the DRYS MAR 09 $7.50 Calls (OOCCU) up to $3.10. After getting filled, place a good til canceled (GTC) order to sell OOCCU at $4.3 for a 39% gain. Also, place a stop loss at $5.87 which means if the security (DRYS) hits $5.87, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC. 12/9/08. Position didn’t trigger since the option opened at $3.80 with the stock gap, which was much higher than our entry point of $3.10.
A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of going long the stock — without the big risks that buying entails.
What you do here is, if you do your homework and agree that the security is bullish, you take a long position in DRYS by buying a call option betting that the stock will go up. You will pay up to $3.10 per stock which means that one option will cost you $310.00 plus commission and fees. Remember, every option contract contains 100 shares.
Options Picks for 12/4/08.
ACTION TO TAKE TODAY.
Immediately go long SNDK (Sandisk) by buying the SNDK JAN 09 $8 Calls (SWQAH) up to $2.50. After getting filled, place a good til canceled (GTC) order to sell SWQAH at $3.4 for a 36% gain. Also, place a stop loss at $7.97 which means if the security (SNDK) hits $7.97, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC. ON 12/5/08, SNDK TRADED DOWN TO $7.58 AND THEN RECOVERED NICELY. IF YOU HAVE GOT FILLED AND DID NOT SELL YET, DO STAY IN AND DOUBLE DOWN. IF YOU DID NOT GET FILLED, NOW YOU HAVE A CHANCE TO GET IN AT EVEN A BETTER PRICE. USE LIMIT ORDERS UP TO $2. KEEP YOUR TARGET EXIT AT $3.40. AND AGAIN, IF THE STOCK TAKES OFF, USE A TRAILING STOP INSTEAD OF GTC. 12/9/08. Position got stopped out with a profit of 20%. The option shot up to $3 before it retreated. If you had used a trailing stop of 10%, you would have sold the position at $2.70. Position held for 5 days.
A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of going long the stock — without the big risks that buying entails.
What you do here is, if you do your homework and agree that the security is bullish, you take a long position in SNDK (Sandisk) by buying a call option betting that the stock will go up. You will pay up to $2.50 per stock which means that one option will cost you $250.00 plus commission and fees. Remember, every option contract contains 100 shares.
Picks for 11/28/08.
ACTION TO TAKE TODAY.
Immediately short BBT (BB&T) by buying the BBT Jan 27.50 Puts (BBTMY) up to $2.80. After getting filled, place a good til canceled (GTC) order to sell BBTMY at $3.8 for a 36% gain. Also, place a stop loss at $30.32 which means if the security hits $30.32, you exit the trade with a small loss. Position closed on 12/1/08 at $5.30 for a profit of 89.3%. Position held for 2 days.
A put option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of shorting the stock — without the big risks that shorting entails.
What you do here is, if you do your homework and agree that the stock is bearish, you take a short position in BBT (BB&T) by buying a put option (BBTMY) betting that the stock will go down. You will pay up to $2.80 per stock which means that the option will cost you $280.00 plus commission and fees. Remember, every option contract contains 100 shares.
Picks for 11/20/08.
ACTION TO TAKE TODAY.
Immediately go long C (CITIGROUP) by buying the C MAR 09 $5 Calls (CCP) up to $2.10. After getting filled, place a good til canceled (GTC) order to sell CCP at $3.8 for an 80% gain. Also, place a stop loss at $4.65 which means if the security hits $4.65, you exit the trade with a small loss. Position closed on 11/28/08 at $3.80 for a profit of 80.9%. Position held for 8 day.
A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of going long the stock — without the big risks that buying entails.
What you do here is, if you do your homework and agree that the security is bullish, you take a long position in CCP (CITIGROUP) by buying a call option betting that the stock will go up. You will pay up to $2.10 per stock which means that the option will cost you $210.00 plus commission and fees. Remember, every option contract contains 100 shares.
Picks for 11/19/08.
ACTION TO TAKE TODAY.
Immediately go long CAM by buying the CAM JAN $20 Calls (CAMAD) up to $2.90. After getting filled, place a good til canceled (GTC) order to sell CAMAD at $4 for a 35% gain. Also, place a stop loss at $18.95 which means if the security hits $18.95, you exit the trade with a small loss. Position got stopped out for a small loss. If you used trailing stops, this position actually made a profit of about 15% since options tarded at $3.50 on 11/26/08.
A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of going long the stock — without the big risks that buying entails.
What you do here is, if you do your homework and agree that the security is bullish, you take a long position in CAMAD (CAMERON INTERNATIONAL CORP) by buying a call option betting that the stock will go up. You will pay up to $2.90 per stock which means that the option will cost you $290.00 plus commission and fees. Remember, every option contract contains 100 shares.
Picks for 11/13/08.
ACTION TO TAKE TODAY.
Immediately go long DIA by buying the DIA DEC 84 Calls (DAVLF) up to $5.75. After getting filled, place a good til canceled (GTC) order to sell DAVLF at $7.80 for a 35% gain. Also, place a stop loss at $83.06 which means if the security hits $83.06, you exit the trade with a small loss. Position closed on 11/14/08 at $8.60 for a profit of 49.6%. Position held for 1 day.
A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It’s the equivalent of going long the stock — without the big risks that buying entails.
What you do here is, if you do your homework and agree that the security is bullish, you take a long position in DIA (Dow Jones Diamonds) by buying a call option betting that the stock will go up. You will pay up to $5.75 per stock which means that the option will cost you $575.00 plus commission and fees. Remember, every option contract contains 100 shares.
First Week of January 2015 Options Trading For EnteroMedics (ETRM)
Stock Options Channel Staff – Monday, December 8, 11:09 AM.
Investors in EnteroMedics Inc (ETRM) saw new options begin trading this week, for the January 2015 expiration. En el canal de opciones de acciones. our YieldBoost formula has looked up and down the ETRM options chain for the new January 2015 contracts and identified the following call contract of particular interest.
The call contract at the $2.00 strike price has a current bid of 5 cents. If an investor was to purchase shares of ETRM stock at the current price level of $1.41/share, and then sell-to-open that call contract as a “covered call,” they are committing to sell the stock at $2.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 45.39% if the stock gets called away at the January 2015 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ETRM shares really soar, which is why looking at the trailing twelve month trading history for EnteroMedics Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ETRM’s trailing twelve month trading history, with the $2.00 strike highlighted in red:
Considering the fact that the $2.00 strike represents an approximate 42% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 83%. En nuestro sitio web en la página de detalles del contrato para este contrato. Stock Options Channel realizará un seguimiento de esas probabilidades a lo largo del tiempo para ver cómo cambian y publican un gráfico de esos números (el historial de operaciones del contrato de opción también se registrará). Should the covered call contract expire worthless, the premium would represent a 3.55% boost of extra return to the investor, or 32.36% annualized, which we refer to as the YieldBoost .
Empezar la presentación de diapositivas:
Top YieldBoost Calls of the S&P 500 »
The implied volatility in the call contract example above is 126%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today’s price of $1.41) to be 62%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel. com .
About The Option Pro.
Most people do not know that there are methods to predict precise stock price targets. That is why most people do not know when to exit positions and how to make maximum profits or cut loss early. After studying ten of thousands of stock charts, we have discovered some secret and amazing chart patterns that can be used to calculate precise stock price targets. Many effective chart pattern secrets are still not published so we can use them as my proprietary income skills. These chart patterns are different from all of those classic chart patterns currently published in books and web sites. By using our proprietary chart pattern theories, we can calculate precise swing price targets, all time high and all time low price targets of many stocks .
We were able to calculate the recent $1 bottom price of Citigroup more than one year ago. When I calculated the stock price target below $0 for Lehman Brothers, Freddie Mac, Wamu Bank months before their stock collapse, we knew they were risks of bankruptcy. We were also able to calculate the recent Dow Jones Industrial Index at 6500 support level and made money from the upside reversal since then.
If you are looking for big gains in the stock market try TheOptionPro. com. While not all of our forecasts are correct 100% of the time. many are and provide excellent gains that out deliver the small losses. If you have questions you can contact us directly in the contact us section of the site. Our customer service is excellent and we will try to answer every question from our subscribers. If you are not happy for any reason simply let us know and we will cancel your subscription with no further charges.
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Options Expiration Explained.
Options can be dangerous.
They have a time limit.
That’s completely different than how stocks trade.
So if you’re going to trade options, you’re going to have to master the ins and outs of options expiration.
This guide will answer every single question.
Why Options Expiration (OpEx) is So Important.
If you come from a directional trading background (meaning long or short), then you probably only focus on where a stock or market is going.
But that is only one part of the option trading equation. It’s known as delta.
The true risks in the options market come from two things:
Theta – the change of an option price over time.
Gamma – your sensitivity to price movement.
A failure to understand these risks mean that you’ll put your portfolio in danger. especially as options expiration approaches.
If you’re in the dark about the true mechanics of options expiration, make sure you read this before you trade another option.
How Does Options Expiration Work?
When it comes down to it, the financial market is all about contracts.
If you buy a stock, it’s basically a contract that gives you part ownership of a company in exchange for a price.
But options are not about ownership. It’s about the transfer or risk.
It’s a contract based on transactions.
There are two kinds of options, a call and a put.
And you have two kinds of participants, buyers and sellers.
That leaves us with four outcomes:
If you’re an option buyer, you can use that contract at any time. This is known as exercising the contract.
If you’re an option seller, you have an obligation to transact stock. This is known as assignment.
On the third Saturday of the month, if you have any options that are in the money . you will be assigned. This process is known as “settlement.”
The transaction in these options is handled between you, your broker, and the Options Clearing Corporation. You never will deal directly with the trader on the other side of the option.
If you are long options that are in the money, you will automatically begin the settlement process. If you don’t want this to happen, you will have to call your broker.
Why don’t Out of the Money Options get assigned?
Each option has a price that the buyer can buy or sell the stock– this is known as the strike price.
If it is “cheaper” to get the stock on the market, then why would you use the option?
If the stock is trading at $79, which makes the most sense.
Buying the stock on the market at $79?
Or using the option to buy the stock at $80?
The first one, of course.
So into expiration, these out of the money options will expire worthless.
What are the Options Expiration Dates?
Technically, expiration occurs on Saturday. That’s when settlement actually occurs. But since the market’s don’t actually trade on Saturday, we treat Friday as the effective expiration date.
For monthly option contracts, the expiration is the Third Friday of each month.
With the introduction of weekly options into the mix, we now have options that expire every single Friday.
The CBOE has a handy calendar that you can download and print for your desk.
Are There Exceptions?
There’s a handful of “goofy” expiration dates on specific options boards.
For monthly SPX options, they stop trading on Thursday, and the settlement value is based on an opening print Friday morning. These contracts are “cash settled” meaning there is no true assignment but instead you look at the intrinsic value of the options and convert it into cash.
Here’s where it can get weird. SPX weekly options are settled on Friday at the close. So if you are trading around OpEx with the SPX you need to check if it’s a weekly or monthly contract.
How do options trade at expiration?
When we look at options pricing, we generally follow a traditional model. We can look at the things that affect the options pricing, known as the greeks.
But when the market heads into options expiration, weird things can happen.
It’s very similar comparing traditional particle physics with what happens at the quantum level.
There’s a concept that I call the “gamma impulse.”
If you look at a call option into expiration, it has this risk profile:
Yup. It’s a Call Option.
We know that if the option is out of the money, it will have no directional exposure (0 delta), and if the option is in the money it will behave like stock (100 delta).
don’t get caught on the wrong side of this.
If you have an option that switches from OTM to ITM very quickly, your risks change drastically.
What if I don’t have enough cash to cover assignment?
This is where it gets interesting.
And this is why you need to be extra vigilant into expiration.
If you have a short option that goes in the money into expiration, you must fulfill that transaction.
If you don’t have enough capital, you will get a margin call on Monday.
You also have gap risk.
This happened to me back in 2007.
I had a pretty decent-sized iron condor in BIDU .
This was back before their 10:1 split.
I found on Saturday that the short options had expired in the money, and that I now had a sizeable long position on in BIDU.
I was lucky enough to see BIDU gap up the following Monday and I exited for a gain.
Pero. nunca más. Make sure your books are cleared out of all in the money options if you don’t want to get assigned.
What if I’m short a call without stock?
If you have a sold call, you will be given a short position if you don’t own the stock already. This is known as a “naked” call rather than a “covered” call.
Margin to hold this short is determined by your broker, and to eliminate the short you will have to “buy to close” on that stock.
What about options pinning?
See my full guide on options pinning.
Can You Get Assigned Early?
With European-style options, you can’t get assigned early.
With American-style, you can get assigned whenever the option buyer feels like it.
What if I don’t want to get assigned?
So you’re coming into options expiration with short options that are in the money.
And you don’t want to be short the stock or own the stock.
Lo suficientemente justo.
Solution #1: Never get down to options expiration with in the money options. Be proactive with your trades.
Solution #2: Close out the in the money option completely. This may be difficult into options expiration as the liquidity will dry up and you will be forced to take a worse price.
Solution #3: Roll your option out in time or price. These kinds of rolls, as detailed in my options trading course , will move your position into a different contract that has more time value, or is out of the money. These are known as calendar rolls, vertical rolls, and diagonal rolls.
A good rule of thumb is if your option has no extrinsic value (time premium) left, then you need to adjust your position.
How To Make Money Trading Around Expiration.
Because of that “gamma impulse” we talked about earlier, the risks and rewards are much, much higher compared to normal options tarding.
There’s two groups of OpEx trades to consider: option buying strategies and option selling strategies.
Option buying strategies attempt to make money if the underlying stock sees a faster move than what the options are pricing in. The profit technically comes from the delta (directional exposure), but since it is a long gamma trade, your directional exposure can change quickly leading to massive profits in the very short term. The main risk here is time decay.
Option selling strategies attempt to make money if the stock doesn’t move around that much. Since you are selling options you want to buy them back at a lower price. And since option premium decays very fast into OpEx, the majority of your profits come from theta gains. Your main risk is if the stock moves against you and your directional exposure blows out.
Options Expiration Trading Strategy Examples.
We do trade around OpEx at IWO Premium. Here are some of the strategies we use:
Weekly Straddle Buys.
This is a pure volatility play. If we think the options market is cheap enough and the stock is ready to move, we will buy weekly straddles.
As an example, a trade alert was sent out to buy the AAPL 517.50 straddle for 5.25. If AAPL saw more than 5 points of movement in either direction, we’d be at breakeven. Anything more would be profit.
The next day, AAPL moved over 9 points, leading to a profit of over $400 per straddle:
This trade is risky because it has the opportunity to go to full loss in less than 5 days. Position sizing and aggressive risk management is key here.
Spread Sale Fades.
When an individual stock goes parabolic or sells off hard, we will look to fade the trade by either purchasing in-the-money puts or by selling OTM spreads.
With the market selling off hard in December and the VIX spiking up, premium in SPX weeklies were high enough to sell them. So a trade alert was sent out to sell the SPX 1750/1745 put spread for 0.90:
Once the risk came out of the market, we were able to capture full credit on the trade.
These are high-risk, high-reward trades that speculate strictly on the direction of a stock. Generally a stock will develop a short term technical setup that looks to resolve itself over the course of hours instead of days. Because of that short timeframe, we’re comfortable with buying weekly calls or puts. These trades are made in the chat room only, as they are fast moving and very risky.
These are just some of the trades we take within the IWO Premium Framework. If you feel that it’s a right fit for you, come check out our trading service.
Our goal is to teach the average investor who is fed up with mediocre returns and to keep financial professionals hands out of their pocket; how to take control of their money & investing decisions so they can create wealth, freedom & options!
Our mission is to be the leader in teaching average investors how to prosper in the market to create financial security and help the middle class decrease the gap in wealth inequality.
We believe the little guy investor is better off making their own investment decisions and can be successful long-term by focusing on sure-fire results while teaching investors how to adjust their risk to meet their desired returns.
Our market approach is unconventional, but we at OptionSIZZLE believe that the average investor can be successful by strategically using stock options, to create higher chances of success, reduce risk & achieve greater returns than most traditional investments like stocks, bonds & los fondos de inversión.
Joshua Belanger has more than a decade of experience and is dedicated to having your back and help provide you the confidence & education to take back control of your financial future to eliminate common mistakes that could really set you back and help eliminate the noise out there.
How Options Expiration Affects Stock Prices.
NEW YORK ( RealMoney ) — Even if you have never traded a put or call, it is important to understand how options expiration can affect stock prices. Trading activity in options can have a direct and measurable effect on stock prices, especially on the last trading day before expiration. Let’s look at two ways that options expiration can influence the overall market as well as specific equities, and then consider how investors should deal with these tendencies.
"Pinning" refers to the price of an underlying stock trading closer to an actively-traded option strike price than it would absent the options activity. Imagine that today is the last trading day before expiration, and that an investor has sold 100 Google (GOOG ) put options struck at 615, meaning that she has the obligation to buy 10,000 GOOG shares from a put owner who decides to exercise their option. If GOOG closes above $615, the put options will expire worthless, allowing the trader to keep the premium received from the sale. However, if GOOG closes at $614.95, the options will likely be automatically exercised, leaving the investor long 10,000 shares at the start of trading on Monday.
Many investors don’t wish to run the risk of the stock gapping down at the Monday open, so they enter stock positions designed to keep the stock price away from the short strike of their options — this is particularly true for investors and firms with large option positions relative to the trading volume in a stock. In this example, if GOOG moves down from $615.50 to $614.90 during Friday trading, our investor might buy GOOG shares at the current market price in enough size to apply upward pressure to the stock price.
Imagine, then, that the stock drifts back up to $615.20. Our trader no longer needs the just-purchased shares, since the price has moved above her strike price, so she might sell some or all of the stock position; note also that option traders who have sold short the 615 calls will have the same incentive now to sell short GOOG stock in an effort to get the stock back under the $615 level. This back-and-forth action driven by the exposure of option traders causes stocks to remain close or be "pinned" to strike prices with high open interest. The effects of pin risk on stock returns have been evaluated in several academic papers. One study from 2004 found that the returns of stocks with listed options are affected by pin clustering, on average, by 0.65%, for a total market capitalization shift of $9 billion.
Sometimes, however, the other factors influencing price movement will easily overwhelm any nascent pinning pressure. Imagine now that on expiration Friday, GOOG shares open down 2% at $605. Traders who might otherwise have thought about trying to defend a short option position — causing the stock to move back up to $615 — know that the value of their option position is worth less than the capital it would take to influence the stock to such a dramatic extent. Instead, it will make more sense for them to buy back the short put options. This creates more selling pressure in the stock, since the market makers who offer those 615 puts to our traders will hedge their own new exposure by selling short equity shares.
Because the time to expiration is so short, the gamma of the 615 options and any other near-the-money options will be very high. Gamma is the risk variable that measures how much an option’s stock price sensitivity (its delta) will change for each point move in the underlying. High gamma means that option hedgers will need to buy and sell more shares than they otherwise would if the options in question had many weeks or months to expiration. Since the hedging activity in this scenario is in the same direction as the short-term price trend, the high option gamma at expiration can exacerbate price volatility. Think of gamma as lighter fuel. It will not cause a fire by itself, but given the spark of a sizable move in the stock, what might be a slow burn on an ordinary day can turn, on expiration Friday, into a major conflagration.
Avoid The Option Expiration Rip-Off!
Posted by Pete Stolcers on February 4, 2009.
In today’s option trading blog I want to try and save you some money. Have you ever been long an in-the-money (ITM) option and cursed at the Market Makers because the options were bid under parity? I have and there is a way to by-pass them altogether. This article could save you hundreds, maybe thousands of dollars.
Let’s look at an example. You are long 10 of the $50 calls and the stock is $58 x $58.10. The options are $8 in the money but the market on them is $7.80 x $8.20. You want to get out at a decent price so you try to sell them at $8. The order sits and it never gets filled. Now you get angry because you know that you are being taken advantage of. The Market Makers are in the business to make money. They figure you don’t know any better and eventually you’ll hit their bid. Here’s how to get out and keep your money.
The first thing you need to do is to find out how your brokerage firm handles this transaction. You are long calls and you can exercise your right to buy the stock at $50 – theoretically you’re long stock. If you sell the stock and exercise your calls you will be “flat”. The transaction is short exempt by rule and reg. and you have what’s called – same day substitution. This means you don’t have to put up the stock margin if it is done the same day. The brokerage firm will require advance notice of your intent to exercise. Once they have it they will create an offset that makes your account long 1000 shares.
Here’s how you handle the trade. Lets say that the stock is offered at $58.10. You place an order to sell the stock at $58.05 and you get filled. Now you exercise the call. The net affect is you bought shares at $50 and sold them at $58.05. Your net price is $8.05 which is $.25 better than the $7.80 the Market Makers were willing to give you. That’s $250 in your pocket. The Market Maker was hoping to do the reverse. First he would buy the calls for $7.80 and then he would hit the $58 bid on the stock. The end result is a quick $200 risk free profit.
If you have the margin available in your account and you are selling the stock on an uptick, you can just do the transaction without notifying the brokerage firm in advance. You do need to put in an exercise notice either verbally or through the trading application so that both sides of the trade clear and the margin is released.
This neat little trick works in reverse for put positions. It will save you a lot of money and frustration. It will also let you “work” an order using the stock which is much more liquid.
Have you ever had to deal with this rip-off? If so, share your experience with others.
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Option Trading Comments.
On 06/09, D. Polis said:
Why sell a large losing call position out-of-the-money one week from expiration and gain back a few measily dollars when you could hang on till the bitter end, or maybe not so bitter end, when all the action may bring more reurn than selling for peanuts at this time. I specifically refer to Pete’s advice to sell the BVF now at $.60. I know it’s a gamble, but what isn’t in this bed of sharks?
On 06/10, Tom said:
I have noticed several times that deep in the money options are quoted below parity. It seems normal to me. I hardly know what to expect anymore when buying an option or closing a position. Sometimes when buying i get filled on a limit order at the bid price even with a .10 spread fairly quickly with no change in prices. Other times I put in a limit order to close a position at the ask and it sits for some time (i guess the market maker is out to lunch). And closing a position with a large spread (above .10 ) one is at the mercy of the market maker. It appears to me that depending on the stock some MM’s are more friendly then others. I never blame my losses or mistakes on the MM’s but i really do believe that there is some manipulation from time to time. Maybe it is my imagination but i don’t see how millions of transactions a day can ever be policed completely. With so much insider secrecy on Wall Street it would certainly be refreshing to discover the real truth.
On 08/28, Morgan said:
I was long a AN call, with about a month to expy. I had bought it for .30c then tried to sell for 1.00 but no takers, So i dropped my price to .30c still no takers. Then there was another offer of julyAN10 s for 1.00 after my offer of the same one for .30c! and it was snapped up. So called the 888options no @ and was told the sale was kicked out by the sec, why? he didn’t know! Morgan.
In order to properly answer your question, I would need the month, strike, date and time of the order to sell. My first step would be to see if the option was in-the-money at the time.
An out-of-the-money option is priced much differently than an in-the-money option. It does not have intrinsic value like the option in the example I provided. In the article above I’m trying to exit the position efficiently.
The OCC (Options Clearing Corp), not the SEC would have “busted” your trade if it was filled due to an electronic error. The Market Maker on the other side gets to plead his case and demonstrate that there is no way he would have knowingly taken the otherside of the trade at that price.
You did the right thing in calling 888.options. That is a resource you should use whenever you suspect you have been wronged.
On 10/20, warren yost said:
I don’t know if I am even directing this question properly, but I am trying to overcome the bs replies from various brokers and the option trade groups.
How is it possible or justified that a call writer who is assigned on a Thursday or Friday will not be informed of it until it is too late to do anything other than buy shares in the open market to deliver, incurring a heavy loss? It seems to me this should be fought vigorously. Especially with spread positions the writer needs notice of the short leg assignment in time to exercise his long leg in order to acquire the shares at the strike price. Notice to exercise and notice of assignment should be required to be delivered by Friday morning and no later. Am I missing something here, except the advisability to always close out spread positions before expiration?
I have just posted a reply to this question in the Option Q&A;section. “I Need To Know When I Am Assigned. Why Is Option Assigment Notification So Screwed Up?”
On 01/28, phil said:
Here’s one I’ve really been trying to figure out: Currently in the money calls on the VIX (take a look at 20-25 strikes) are trading a FEW DOLLARS below parity! And, the March 08 calls are cheaper than the Feb 08 calls. This is totally screwy – the obvious would be to go long and exercise except the options are European style and can’t exercise until expiration. What’s going on here?
These options are European syle which maeans they can’t be exercised early. You can trade out of them, but you can’t exercise them. The price of the options indicates that the market believes implied volatility will decrease between now and expiration. These volatility spikes don’t normally last long and that is reflected in the price of the options.
On 02/04, Mark Wolfinger said:
It’s not as complicated as you make it.
Exercise the call first, then immediately sell long stock at the market.
That way you don’t risk that the $58 bid will disappear while you are trying sell stock at $58.05.
You make a good point and I did not clarify my reason for wanting to sell the stock between the bid/ask. Yes you can hit the stock bid and get out at a better price than if you sold the option on the bid. However, I like to work the stock offer to try and get a better price. The option market is thin and I am always at the mercy of the Market Maker. In this case, I am able to take advantage of greater liquidity in the underlying stock. Selling an offer on a stock is relatively easy and spliting the bid/ask is almost a slam dunk. You should evaluate the size of the stock’s bid when determining if you can split the difference. If there is more stock bid than offered, you have a good chance of getting filled in the middle.
On 07/24, Mr. Edone Fleites said:
I did an option trade, a put. symbol: nflx 10 sept. p 115.00 1 contract, cost $1005.00 the stock price dropped from 115 down to 6.00 that was a 9 dollar drop and only made 395.00 dollars. please tell me i was ripped off and what can i do about it. trexmb@yahoo. com.
When you buy an option before earnings, uncertainty is priced in. Think about it, that is why you wanted to buy the option. There was a great chance for a miss. The seller of the option demands a much higher price because he is taking a great risk by being short that option over a major news event. Once the news comes out, the uncertainty is gone and the implied volatility drops. To make money on options you buy before earnings, you need a very big move. I don’t suggest this trading strategy since it is a crap shoot.
On 10/18, Mr. Nagy-Deak said:
On Friday 10/18/2010 i purchased 2 out of the money options for google at a 600 strike for .60 each. I then issued a limit order to sell them at 1.25 each. an hour latter i came back to my computer to find that the order had been cancled at 2:29 pm (5 minutes after i placed it) and a market order was issued to sell the stock at 3:32 pm. they cancled my order, then waited an hour and sold it at almost the lowest possible price for the day. I can’t get any answers out of them as to what the bid and asks were during the hour after they cancled my order and sold it were, i know that when i checked them myself around 3:40 they were 1.45 and the bid and ask were higher, i think 1.50 and 1.55. I think i got ripped off what do you think?
You talk about trading out of the money options and then you say they sold your stock. There are too many missing pieces of information for me to comment.
Here are some words of advice. If you are trading front month options on a $600 stock a few hours before expiration – DON’T LEAVE YOUR COMPUTER, NOT EVEN TO GO TO THE BATHROOM.
Make sure you are aware of the brokerage firms policies regarding option expiration. Specifically, how they handle auto-exercise and assignment. In their agreements that you signED, they will protect themselves in every way possible. They do not want your calls to go in the money where you are auto-exercised. The account could go debit when the stock tanks Monday and you don’t have the funds pay for the shares or cover the losses. Their risk department will cover the position whenever they want that day and via the agreements you signed, they have the right to do so.
These employees (risk managers)are not trying to rip you off. They are trying to manage as many similar situations as they can on thousands of accounts and they will simply blow the position out. They are not trying to time the trade, they just want to get if off of their books to eliminate risk.
As long as the options stayed out of the money, I’m not sure why they would sell the calls (you said they sold stock and I’m guessing you meant to say calls). Tey would have simply expired and there would be not risk to the firm.
If you ever want to check time and sales, you can contact the exchanges and they will provide that to you. Try http://www. cboe. com.
I don’t think you will have much recourse in this case. It is an expsive lesson and I’m sorry you had to learn it the hard way.
Know the rules and exit front month options before the last day. If you are trading them on the last day, don’t leave your computer.
On 10/20, anony1 said:
I bought 6 contracts of aapl 310 oct 2010 at $0.63 on friday before the market close and went for lunch thinking that they expire a week later. when I got back, the market closed with aapl at 315, putting my options in the money, but expiring the same day. I called my brokerage and they told me that they would buy the shares and I could sell them on monday morning.
on monday morning the stock opened at 318, but the shares were not deposited into my account. When I called them, they said that I had too little funds in my account for them to deposit 600 aapl stock, so they decided not to put them in.
I called OCC and they said that the options were not allowed to expire on friday. that means my brokerage did exercise and make profit on my options. Was there anything else the brokerage could have done to let me keep the profit? Shouldnt they at least return the premium I paid on the options if not the 5k$ in the money that the options were?
Is there anything they could have done, yes. They could have sold your call position for you before the close. However, they have thousands of accounts to monitor and what was out of the money 10 minutes before the close is now in the money at the bell. They can’t possibly monitor all of the potential problems and they rely on the customer to keep track of their positions.
If they made money on the trade they could have credited you with the premium you paid for the calls. I think that would be fair.
Is there anything they had to do, no. The options were going to be auto-exercised and you did not have the money in the account to pay for the stock. It is your responsibility to know what you are trading and when the options expire. If they took your word for it that the funds would be deposited and the stock dropped $20, before you wired the money, you could change your mind and stick them with a huge loss. They are not going to take that risk. The brokerage firm’s rights are outlined in the Account Agreement and they protect themselves against such situations.
I’m sure they sold the stock in after hours trading on Friday. They would not wait until Monday.
If you are not happy with the way it has been resolved – leave. There are many good brokerage firms and you know that if a future problem surfaces, they do not have your best interest in mind.
On 10/21, anony1 said:
gracias por su respuesta. I wish I had found your informative blog before this event! I did not mention one thing that happened on monday morning. Friday night, the brokerage firm told me that they would deposit the 600 shares on margin, and that I should sell the shares as soon as the market opens on monday. On monday before market opened, the stock was at 318 premarket, and the 600 shares were shown in my account. I was watching the market closely and waiting for it to open so I could place a sell trade on the 600. but just as market opened, the shares were removed from my account.
Then I called them, and then they said we cant give them to you etc. Is what they did illegal? they are my options right, can they keep the profit from exercising and then selling the shares immediately?
In the Account Agreements you will find that the brokerage firm protects itself. It was your responsibility to exit the position ahead of expiration. You did not act responsibly. Any action that was forced upon the brokerage firm as a result of your negligence will be outlined in the Account Agreements. If they make money, they will keep it. You did not have sufficient funds to cover the assignment. If they lost money on the trade, they would pursue collection for the debit.
I’m shocked that they did not dump the AAPL shares Friday in after hours trading.
That really does not matter. I think they could have at least scratched the trade for you – covered the commissions and the premium paid for the options. That would just be a gesture of good faith.
I would talk to a Manager and ask for this resolution. You could threaten to file a complaint with the regualtors. Some firms might want to avoid that and it would be worth the $400 to get you out of their hair.
On 02/17, Ken said:
Where is the option part of an option in an auto-exercise by the broker?
The option is only auto-exercised on the close Friday if it is in the money. This is to protect the customer (who forgets they have the position and does not close it) because the position has value. This is not a broker’s decision, it is mandated by the OCC (options clearing corp).
If you don’t want the stock, sell the option before Friday expiration. That is your option.
On 03/24, Alirio de boer said:
I had BIDU Mar 19 ‘11 $110 Call and Jll Mar 19’11 $95 in the money, but was NOT exercised after expiration. After asking and asking E*Trade came with this reply message:
I reviewed your account and found that we just let your options BIDU Mar 19 ‘11 $110 Call and JLL Mar 19 ‘11 $95 Call expire in your account. You are correct that they were in the money before they expire but when you buy a call option that means that you have the right to buy the stock for the price of the strike price specified. If you will be exercised then you need to have the funds in the account to buy the stock but you do not have cash in your account to buy those stocks that is why we just let your call options expire.
So, I did not have enough funds and the call option has expires in the money and E*Trade has not execute the contract and add the profit to my account. Because I did not have the liquidity to exercise the options for a profit E*Trade have exercised the options and keeps the profit and I have lose my Investment.
Is this Option Expiration Rip-Off? Que puedo hacer.
First of all, shame on you. You either needed to fund your account to cover the margin requirement for the stock or you needed to be responsible enough to get out of your position on or before exipriation.
Secondly, stop blaming E-trade for your error, you screwed up. No matter what the situation, you needed to make provisions to get out of the calls. A simple conditional order could have been placed with a time constraint for the close Friday.
Now for E-trade. ALL IN THE MONEY OPTIONS ARE AUTO-EXERCISED BY THE OCC (Options Clearing Corp) ON EXPIRATION. The firm probably sold the stock in the open market after hours and exercised the calls, pocketing the difference.
They could have been up front with you and told you this. They also could have split the profits with you.
They are protected by the User Agreements you signed when you opened the account. If you can’t afford the position, you have no right to the profits.
If they would have exercised the calls and you came in long 1000 shares of BIDU Monday, the stock could have dropped $20. Then, you decide you don’t want the position and you walk away from the account, leaving them with a $20,000 debit. They are never going to put themselves in that situation.
You can voice a complaint with the firm or FINRA. You can also vote with your feet and move to another brokerage firm.
Whatever you do, learn from the situation and never let it happen again.
On 09/17, Vera Waitress said:
I’m so embarrassed to post this that I used a pseudonym to hide my identity.
If you’re foolish like me and let your options expire a few cents in the money this month and don’t have funds to pay for the exercise of stock, E*trade allows you to call AFTER the market closes (until a 4:15 EST cutoff) and make a “Do Not Auto-Exercise” solicitud. This saves you the embarrassment of going debit on your account if you have inssufficient funds to handle an exercise, but this doesn’t give you any recourse in liquidating the options to recoup any money. (You eat the option price and let E*trade keep it, apparently.)
That’s fine, but I didn’t call until 4:30 which is after the “do not auto-exercise” cutoff. Ugh. (Story of my life.) The rep then told me they put in a “manual” request, and couldn’t guaranty that my options wouldn’t be auto-exercised because I missed the cutoff.
Then the E*trade rep told me in that case, that my 2 SEP 55 calls which were .07 in the money at expiration would be auto exercised, and my account would show a debit of $11,000 which I would have to pay! This didn’t sound right to me– E*trade isn’t going to go out on a limb for some two bit hack customer like me and buy $11,000 worth of stock, hoping that I put at least half that in margin in order to turn around and liquidate the stock monday morning. ¿son ellos?
Then, I asked the E*trade rep “Can I just turn around and sell the stock that I haven’t paid for yet and reverse the debit?” He hemmed and hawed and said “Uh, well, sure, but we can’t be responsible for the loss if the stock goes down.”
I don’t think this guy knew what he was talking about. Based on these messages, E*trade won’t even buy the stock.
But my question is, if they let me off the hook and don’t auto-exercise the stock, what will the likely fees be? Auto exercise fee? A fee for the hassle? A fee for my “get out of jail free” ¿tarjeta? I deserve to pay them all, I know.
You will be auto exercised and it is not a function of Etrade. The OCC (Options Clearing Corp.) looks at all of the open interest and if the options are in the money, they auto exercise to protect the customer. The OCC notifies Etrade that the calls were exercised and then the firm allocates the shares based on which accounts are long ITM calls.
You will come in long shares Monday and if the stock moves lower, you will be responsible for the loss. If it moves higher, you will be entitled to the gains. You can sell the stock without meeting the margin reauirement and your account will be tagged with a Fed Call. It might be restricted for a while, but you get 3 Fed Calls if the firm chooses to extend them.
In any case, it is your responsibility to get out of positions. ¡Presta atención!