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American Capital Agency Corp. Message Board

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  • olee2116 olee2116 Oct 24, 2012 9:29 AM Flag

    OT: FB earings

    See what I'm talking about??? I had FB calls that expired, if I had bought the nov calls, I would be sitting on big profits.

    You guys are greatly understating the risk of expiration. I can be completely right on the trade, but if I'm wrong on the timing, I lose everything...

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    • But Olee brother, what I don't get is why don't you do farther options? If you get short term options you should accept that you will lose. With let's say jan 14, it's like holding a stock while adding more each month if you made a mistake. I don't want to sound bad, but you are gambling and not investing in options. Good Luck brother, and buy FB puts

    • But the premium on fb calls (and puts) were very expensive as well. That is why I stayed out of earnngs. In retrospect, buyng the calls was a good play, but the ATM calls were at a price that your BE was a +7% gain. When the weeklies have premiums like this, I would just either just long or short the stock. The premium is still extremely high, but I expect the November puts to look much more attractive in the next few days.

    • Why don't you look at trading spreads instead of straight up calls or puts. I know that the return may not look as good, but spreads will allow you sleep at night, and you can adjust them if things go haywire.

 
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