LOL..the only questions seem to be:
do I buy $35 puts or $25 puts?
Do I buy June or October?
Do I add some $7.50 puts just in case?
But so far, buying puts on BP has been profitable to the tune of about 24,000% in 3 weeks. Those June 30s were alerted in our chat at .12c, and they ran to a high of $3.20
Wait..that's more than 24,000%, lol. Oh well
and I've posted the entry screens here on yahoo the entire way :).
BP $30 Puts +212% at the open
BP 35 puts +295%
Congrats to those who bought last week
BP $35 puts +212%
1.21 now, rising
Looks like BP is headed for another leg down...losing $38
Level 2 screen for BP puts at the close of trading on Friday.
I'll post the renewed screen in a few
we're at marketaddicts net /chat/
Anyone who has tried to visit our room, be aware, it's memorial day weekend, only a few of us checking in.
We are there from about 9 am Premarket EST to often 11 pm or later, depending if anyone is watching the asian markets overnight for a position they're in
I'm in puts, and I know many people are already up 10,000% or higher on their put positions since April
However, honestly, holding into expiration week is a fool's game. There are so many games being played that week, that there is no way even the best trader can be certain which way their stock will go.
It seems kind of fiendish, but it's almost as if the specialists do their best to make sure the underlying equity closes at a position guarnteed to ensure that the most puts and calls close at 0.00
I.E., GS will close at 1.39.20, making sure that both 1.40 call holders and 1.38 put buyers are equally screwed.
Rather than even try, just go to cash on Friday before expiration, and wait. There is no law that says that you must trade every day...in fact Jesse Livermore stressed that you cannot win all the time. If you try and trade every day, you will usually lose money.
You can only be sure of an option trade when the market has a strong trend.
Just my .02c