Just noticed checking on the Amazon options. They even include the mini options! I gripe enough about Yahoo finance, but when they do something right I say "Way to go yahoo!" Thanks for the useful new options tables!
Way to go yahoo!
Premiums very high. If bearish, buy a put spread (for example long $290 put/short $260). If bullish a call spread (e.g. long $320/short$340). But like Gegenjar, I may sit this one out. Nothing more infuriating than calling the direction but losing because you overpaid for the option.
We agree on this--the options premiums on both puts and calls are way too high. Look what happened to the Chipotle options premiums after the report--even most of the puts lost big even though the stock fell $40. To break even on some of the Amazon puts or calls, would need a major move of 15 or 20%.
I've been warning of the put/call premium bubble pre-earnings for a long time. Now a new crop of suckers is learning. Even the strikes near $600 are down sharply.
Take short profits if you have them.
Ol' Syb hatez everyone equally, with a bit more for Phil maybe. Nothing personal. Syb may be wrong about one thing. There may be a strong rally going into election where the Repubs recapture the Senate & increase House majority that may carry some stocks to new highs, and even the SP500 back above 2000 by January. However, I give this a 40% chance. Syb may be 60% correct that the Alibaba top was THE top.
Massive collapse of premiums on Tuesday.
Put spreads if bearish or call spreads if bullish. I lean to the bear side on this one. It will take a $50 plus move to break even on this--so buy a spread if you play at all. The premiums will be deflating bigtime Tuesday.
They were counting on higher rates & they may not materialize. Forcast: "PAIN!" to quote the esteemed Mr. T.
Since usually bearish Alan Abelson passed on, Barrons has become a pumper paper. They are changing their name to "Bullons". The paper is no longer worth reading except for a good laugh.
All the high PE momentum stocks are linked in high correlation.
All the high PE Momentum stocks move as a herd generally.
Sentiment: Strong Sell