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Category: Backspread

  • Show Me How to Fish +100% in Polycom (PLCM)?

    Polycom Inc (PLCM) missed both earnings as well as revenue estimates and as of this writing, PLCM shares are down almost 32% !!! Options were pricing a 18-20% type of move and this was also part of my “potential movers” list that I shared before market close yesterday. So, with the hindsight benefit, how could…

  • OPNewsletter Oct’10 Up 7.7%, Gear-up for Earnings

    Undoubtedly GOOG earning play was a star trade generating over +800% gains in a day. It wasn’t sheer luck, we prepared ourselves for it. I shall share our exact trade after earning season is over as we plan to use similar strategies for AAPL and later for some more counters during this earning season. For…

  • OPNewsletter Aug +8.4% (closed), Sept +4.3% (Open)

    OPNewsletter delivered +8.46% for the Aug 2010 Income portfolio on a 51% portfolio capital investment. As you may know, since mid of April 2010 we reduced our capital allocation to trading as we were anticipating this market meltdown which started around 3-4th week of April. For Sept 2010 opened portfolios, we are up +4.3% and…

  • Priceline- How Did We Make Triple Digit Gains

    Backspread Option Trading Strategy is one of my favorite strategies when it comes to playing large move and when I am not so sure of the direction. I like to play it especially when I am biased about the direction but I don’t want to take unnecessary risk. I first introduced this spread to OP…

  • Goldman Sachs (GS)- A Potentially Profitable Opportunity

    Goldman Sachs (GS) is down $40 since April 16th; How much more it has to lose? Anybody’s guess is probably better than mine. Regardless of whatever I think, I guess they are too big, powerful and connected to go under. With that bullish bias, here is a trade idea that potentially can deliver excellent results…

  • How to Play Alcoa (AA) Earnings?

    Aloca (AA) is set to announce earnings after close today. Wall Street is expecting a fall to -$0.55 to -$0.57 EPS depending upon who do you follow (Zacks, First Call etc). The quarter was not that exciting, hence the expectation are already factored for a very poor quarter. I think the movement will depend on…

  • How to Play AGIX BMRN Part-2

    Here is an update on the AGIX. To refersh, we discussed in the earlier trade the reason why there is so much buzz about these two tickers is due to pending FDA announcement. These are highly volatile and I expect volatility to either rise or remain flat till the announcement. The key question is how do…

  • AMZN and ERTS announcing tonight

    Amazon and ERTS are announcing earnings result tonight. A huge swing is expected in AMZN and little less in ERTS. So keep your backspread readys to do a paper trade to understand better how it works. Cheers and profitable trading, OptionPundit

  • BACKSPREAD : Strategy for large moves

  • Apple Earnings – Closed for 7 % Profit

    Well, despite the great show, apple didn’t turn out a great show in the stock performance. Since I played non-direction on the earnings, I covered my short 95 call leg for $0.20. This resulted in $95 profit on $1365 investment i.e. 7% in one night. Though apple continue to fall as of this writing, I…