Bull call spreads are nice plays for credits. Have you ever thought about selling cash covered puts? You can actually re-range your spread also where the sold calls are much more expensive than your bought calls.
I trade an awful lot of options. I do butterflies, times spreads.
If you are playing for credit, you might want to try back spreads. On a call back spread you can actually collect a credit and if the stock ends up going up, you can also get dollar per dollar gain (2 to 1) once it rises the difference in the spread above the bought calls.
I am not a big advocate of covered calls unless a person is holding a fairly low beta stock but then again they are lower. It is actually better in my opinion to sell puts.
What you are saying is not grounded in reality. What is the reason it will go to 150-200 before years end? Seriously what makes it do that?
Most pure options traders are people who can't afford the stock. That is the reason why there is a stigma. I have been an options strategist and if you trade spreads, you usually give up a big gain for a smaller peice of the action but it is a higher probability trade.
What type of spreads do you trade?
I agree that CNBC is just for entertainment only but my goodness isn't that a bit of a conspiracy theory. The market is made of of a lot of participants.
Stocks cannot be compared on pps. Maybe you can compare them on eps and base that on price.
Price means nothing in comparison.
Well, it is good you made some money. Its going to be a tough call. It will be interesting big money is still pushing it but you are doing the right thing and realizing a profit is good.
This is at $5.90 right now. I rolled this into a 70/72 strike strangle at $4.90. Lost about $.20 cents across the spread. My cost basis now is $3.00. You want to roll atm. remember the volatility smile. Good luck
And mandoesit the guy who said that FB rev from Walmart would be 100B. Also how many times have you said it would North of a hundred last year. I wouldn't mention the charts if I were you.
mandoesit, pressmenjohn, drmiller, spencerdoc, theman111 and so on and so on,............................How many ids do you have? Who are you working for and how much do they pay you per post?
There are actually hardly any shorts. 34 mil (which is half a days volume) as of Jan 31st and because of the rise quite a bit lower.
At a 100 a share, they will have a market cap of 278 billiion without new shares when options and rsu's become new shares.
Key to what? Does it just go over a resistance and then you just pick a number?
Why don't you learn to stop making stuff up? I know you just learned to look at shapes in the clouds but there is a little more to chart reading. :0
I agree with you that FB was a steady growth stock and at this point in time I am ambivalent on the direction of the stock. It keeps going up. It is not based on fundamentals. At current growth rates, it would take FB 6 years to grow into its current multiples which is okay but at how high and how far out can FB be valued. FB is not the only stock that this is getting huge momentum. There is NFLX, TSLA, GOOG. All of the current rises are irrational in my opinion.
I think at this point I would hold until next earnings and maybe that would be a good time to consider a directionless play like a straddle or strangle. There may be some small retraces between now and next earnings but I believe that the trend is up. I don't think that the trend will be gigantic at some point in time it will need to normalize.
Its been a tough trade. Look at GOOG, TSLA, NFLX. A lot of tech is up. If you can catch the perfect spot, you will make great money. I agree it is not fundamentals.
I don't understand where all the liquidity is coming from. It makes no sense. There will be some good dt's if the market turns. Good luck