OptionPundit

Category: Intraday Trading

  • Pre-market Gainers and Losers

    Futures are pointing to a modest higher opening. The crude is slightly lower which may affect OIH, MRO and XLE slightly. Here is a quick list of the pre-market gainers and losers-

    Pre-market gainers: BDY, AV, WNG, CDWC, INSP, BLG, ASN, PCS AND PV

    Pre-market losers: EYE, DO, BOL, and JSDA

    My bias is for a bullish intraday play but nothing before market sets the initial enthusiasm.

  • Buffalo (BWLD) Announces Stock Split

    This is my speculative play for a short term. BWLD announced stock split and I would like to benefit from the upside movement that we’ll see in this stock (my bias). This is at near 52wks high and will face resistance till $81.75/$82. If that’s gone, it’s open for no limit.

    bwld-split-play.png 

     

     

    Here is the chart and you’ll notice nice strength in the stock.

    Profitable trading, OptionPundit

  • May’07 Option Expiration

    Today is May 07 options expiration day. As I had shared earlier, there are two significance to this perticular day:

    1. Theta is fastest i.e. time value will erode at the fastest speed
    2. Stock option pinning is now a more visible phenomenon

    How can one take advantge of these two?

    If one wants to trade intraday i.e. there will be very little time value and one can play nearest in-the-money options to leverage the most. Similarly, check out the stocks that has tendency of pinning i.e. GOOG, OIH, SHLD, CME, etc. and choose your pick. You may open ATM iron condors or iron fly to benefit from pinning action.

    And by the way, if you have options expiring worthless, don’t let it be. Place the the order for nearest ask i.e. $0.05 if your commission is cheap. Some one may want to close his/her spread and may buy yours and thus giving you some money vs exiring those worthless.

    Check out previous posts or discuss here

    Profitable trading, OptionPundit

  • Fall is beautiful

    Today’s market fall was not really a surprise and I welcome that. I had sold my speculative trades after the fed announcement when Mr market was happy and it was going up. There is no point in talking coulda, would, shoulda but OP readers know that I had sent an alert earlier not to begin new positions at least till tomorrow i.e. friday.

    I reviewed only 2 trades-

    • OPWV has roughly resulted in 30% gains in one day, and it shouldn’t be surprise either as I had sent alert on that too. The positions are still open.
    • WNG was on the radar list and I had sent an alert to registred users for $70 PUTs. Stock was at $70.5 roughly that time. I didn’t dare to open that trade as the bid/ask spread was too wide to make money confidently. It closed at $67.5, a nice $3 drop (I also mentioned before the begining of trading day that I like loser today and WNG was in the pre-market list).

    Let’s see how markets open tomorrow, funds are free now to make fresh purchases.

    Profitable trading, OptionPundit

  • ADP profit, over 200%, still open

    screenhunter_30.jpgThought let me share with you how I am doing on ADP…already up over 200% in less than 1hr, most of the gain are due to IV rise on the May 50 calls, I bot it for $0.15 and now selling $0.50-$0.60.  I have already sold half of May 50s at average $0.48 per options and still holding to rest half. Trade timing in the screenshot are asia-pac time.

    Profitable trading, OptionPundit

  • See C and ADP

    There is huge call June 57.5 options buying in Citibank (C) and ADP calls 50 also very active. Check out. Profitable trading, OptionPundit