I wonder when they will move the stock - As you said there is very less premium left for the sellers. I, for one, believed that this is going to move big today but that does not seem to be the case until now How much more can the option premiums fall before they go up in value again ?
Given that the range for GOOG for any particular week is at the least 20-25 $, it is reasonable to expect that this touches either 1222 or 1187 - Which way will this go ? - Been a very tight range indeed this week.
The Premiums fell about a little more than 25% - Not exactly 30% that I have set as a benchmark. Nevertheless, I entered the 540/530 strangle for 3.68 - Had the trade going for about 4.5 a little after open today but then the stock came back to 535 which was an alarm bell for me and I bailed for break even. Normally, I wait for the straddle premiums to fall 30% on Tuesday to enter the trade. Worked many times for a profit of 200% plus in 2 days. I am looking forward to next week - Lets see !
Great posts and analysis.If the weekly option premiums crash another 15% by the end of the day, this stock is going to move big next 3 days. I don't guess directions - I play delta neutral - WATCH THOSE PREMIUMS !!!!!
Yeah - Numbskul I am - For sure !!! Thanks ! I totally ignored the settlement period !
It is on the website !
So What will happen if the decision is something the street does not like - Go down or FLAT ? That would be interesting to observe.
I still think this has a 1095 close on Friday - do you have a bias - Up or down ? after the Fed decision tomorrow.
Tread water on Monday and Tuesday and then it may move - Up or down - No Idea. But this week was nasty - Just a 10 point move either side of 1060 - Unreal.