Over 4 million shares by noon....
Once again, hmmmmm?
Stout_one... I think your intra day long will be a good play.... I just have to be conservative, but I am going to bump my buy order to 30.75. And head to the grocery store, hopefully $500 wealthier, minus grocery money, when I get home. Good luck.
It helps crystallize my thinking.
That's what I have found too. In the quest to make intelligent posts, it forces one to really think things through.
BTW, yeska... Indy is 75% option illiterate..... I can't even remember the rules at a crap table... hence, I avoid both.
It means nothing per se, other than the volatility has moved up with the drop today vis a vis recent activity. As long as the market makers can get action on both sides of the spread or the buyers and sellers of the options move in to reduce the spread it will remain. The options market makers are in this to make money and to hedge out any risk relative to positions that they are obligated to make. Volatility is often referred to as a fear index. It can expand on the theoretical basis as a sole function of price movement, and expand even further with an expectation of even more volatility (thus the fear component).
My expectations on July 30th and how they will be managed by Day between now and then will be posted at the EOD.
Hope this helps. Please ask any questions you wish. It helps crystallize my thinking. Thanks.
Turk, Stout, Indy, Sburn, and others who may play options...
Here is a trade that I have been doing and it seems to work out for me.. Please share your idea on what if anything is wrong with this...
Buy 10 RSHMH (RSH -- Jan 40 Puts) @ $9.50 and simultaneously sell 10 RSHMG (RSH Jan 35 puts) @ $5.70 for a net debit of $ 3.80
This trade will net you $1.20 or $ 1,200 for every $ 3,800 outlay for 5 months to expiration (a return of over 70%) if RSH closes below $ 35 on or before 3rd Friday of Jan 2008.
I have started doing these trades (nibbling 5 x 5 's) or sometimes (10 x 10's) and I think this is a slam dunk unless some crazy comes in and takes it private for more than $ 36.20 ($ 35 plus $ 5 minus the $3.80 difference in option prices)
Turk, if you are into options, you should look into this (that is if you are authorized as a level 3 options trader)
I strongly recommend it...
I like it a lot from the risk/reward ratio viepoint.
August $35 calls have a bid of .60, ask of .70.
Seems very low priced. What does the above pricing suggest to you?
Of course I would speculate it means that RSH's numbers being released July 30th may well be known, and there is not a surprise. But what do I know, my intial RSH short was at $25