The consensus here is that DB is either going to 30 or 0. A strangle or a straddle would appear to be the best strategy to play this out. Any thoughts on the best exp month and strikes?
I am mostly doing short term trading with UVXY, VXX, QQQ, AAPL. I like the very narrow bid/ask spreads for the QQQ. My first buy in is usually a spread position. Regardless of how good I think I am at finding a bottom, I am usually wrong about half the time. My second buy in will then be open calls. This is what I did this morning with QQQ. I closed out the open long calls shortly after it filled the opening gap. Both VXX and UVXY puts are good as long as the bid/ask spreads are not too wide.
Good chance of getting filled. Guy on CNBC now saying this is a buying opportunity.
I noticed that the bid/ask spread for this option is only 0.04 With such a low spread, you should be day/swing trading at least some of your position.
Have you considered doing ratio spreads?
Long 1 Jan17, 120 call AND short 2 Jan17, 170 calls
You may be able to do this spread for a net credit of around 13
At expiration, you will make a profit of 50+13=63 if UVXY is at 170.
At expiration, you will begin to show a loss only if UVXY is above 233.
At expiration, your profit will be 13 if UVXY is under 120.
Of course there may be paper losses, but the ratio spread may reduce your margins.
It will be interesting to see how Chipotle plans to handle any claims of food poisoning. Most of these types of settlements have a confidentiality clause so we may never know. So far, no employee has been sick and no trace of e coli has been found in any of their food samples. This will be difficult for Chipotle because if they were to pay for some claims, this may amount to an admission that there actually was e coli in their restaurants. This could then open the flood gates for more claims for a guaranteed payday. One of the e coli claims against Jack in the Box was settled in 1995 for 15.6 million. This was a very severe case in which the girl was in a coma for 42 days and may end up with organ failure in the future. However, most food poisoning cases are settled for 5-15k.
I generally eat at Chipotle once or twice a week. Tonight, after completing my meat order, I was waiting for the girl at the toppings section. She was very busy cleaning the counter by rubbing it with her gloved hand until it shined. She was essentially using the glove as a cleaning cloth. When she finished, she looked up at me and smiled. I was waiting for her to change her glove, but this never happened. I decided not to select the cheese or the chopped lettuce which requires direct contact with her gloved hand. Later, I looked back and saw that the lady in line behind me did select the cheese and chopped lettuce. I have seen employees in two other locations do the same thing. They should be using disposable paper towels for cleaning the counter instead of their gloved hand. While this may not be the cause of the current food contamination, at least this would result in a more sanitary environment.
The major support level at 25 appears to be holding. I bought the Dec 24.00 calls for a trade. Looks like it may break out of the descending triangle pattern.
TORONTO, Nov. 25, 2015 /CNW/ - Koskie Minsky LLP and Sutts, Strosberg LLP announce the addition of the accounting firm PriceWaterhouseCoopers LLP, Valeant's auditor, as another defendant in the proposed class action against Valeant Pharmaceuticals International, Inc. (TSX and NYSE: "VRX"), and certain of the company's senior officers, including its current CEO, J. Michael Pearson.
It was the Enron scandal which brought down Arthur Anderson. The accounting firm was found guilty of criminal charges relating to the firm's handling of the auditing of Enron.
The similarity here would be if PriceWaterhouseCoopers is also found guilty of improper auditing of Valeant.
PriceWaterhouseCoopers LLP was engaged to audit Valeant's consolidated financial statements during the class period. The class action alleges PriceWaterhouseCoopers LLP knew or ought to have known that Valeant's financial statements were not accurate or reliable.
The SPY, DIA and QQQ looks like they are forming a double top. I have reduced my market position and doing more day trading.
Take a look at the 109.71 gap from Oct 22 for QQQ. Today's low was 109.78, probably close enough for the gap to be considered filled. Maybe a rally on Monday?