I am covered in case it carries a bit higher.
The best case for da bulls--market carries up from now into 1st week of Jan., then the REAL crash starts. But actually may much sooner.
At the top of the 60% Fibonacci retracement of the decline. Much higher and the Dow may make a new high, but I'm still leaning to the top of the retracement theory. Bought some SPY & DIA Nov. puts earlier today.
Poor sheep who bought the weekly calls & especially puts shorn again.
"Da boyz" have to hold it in the $610-$620 "maximum pain" range so as to collect the maximum amount of call & put premium form the weekly option traders.
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.