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…