That is why I like selling option spreads. You define how much you can potentialy lose right from the start.
Selling a single put or call even 50 points away still has some risk on a big move.
On Monday I sold the 670 weekly calls and bought the 670 monthly (April) calls. Nice little weekly calendar spread. I chose the strike just at the fringe of the implied volatility window. After the volatility gets crushed at 9:30 AM, it might turn into a nice profit.
Yeah. It's ok to play GOOG earning with options that have a 2 - 6 month shelf life. However, playing GOOG earnings with options that expire the same week or a week after earnings are announced is not a good play. GOOG has not been making the hundred point moves on earnings that are necessary to profit from these short term option earnings plays.
I think GOOG's stock split stunt is going to result in a significant sellof in GOOG shares during the next month as investors realize that they have been played for suckers by the clowns at GOOG. Therefore, if you have some June or September puts, you might make a decent profit. On the other hand, if investors thnk this is a great idea and GOOG shares soar in the next month you might make some good money on calls if you have the time to hang onto your options.
I sold an Iron Condor spread which usually works great with GOOG since there is so much premium in the options.
This time it was the 595-590 put spread and the 680-685 call spread on this weeks expiring options.
This whole topic deals with "play" as though that only could mean going LONG on CALL. Most retail options "players" are blind to the fact that there are many other ways to "PLAY" than that... they are beaten by their own short-sigtedness and nothing else, really.
You should get out. I have no position in Goog beyond what is expiring tomorrow, and don't plan to open anything new in Goog anytime soon.
I suspect that the vast majority of retail option buyers lose. Odds are against you -- long or short, it makes no difference.